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Election

The 8 Campaign Funders Romney Would Be Most Beholden To

Mitt Romney meets with Paul Singer and others

Mitt Romney meets with Paul Singer (right) and others (credit: Chip Somodevilla/Getty Images North America)

Will Rogers reportedly once said “politics has become so expensive that it takes a lot of money even to be defeated.” Between his campaign — which has raised at least $283 million to date — and the more than $90 million raised for his “independent” super PAC, calling the amount going to elect Mitt Romney “a lot” would be an understatement. While Romney will owe the top donors and bundlers to his campaign a great personal debt of gratitude even if he loses in November, should he win, those who bankrolled his campaign will likely expect access and influence.

A ThinkProgress review of the top donors to Restore Our Future Inc. and top “bundlers” (supporters who volunteer to collect large bundles of campaign contributions for the former Massachusetts governor) identified by USA Today and the Sunlight Foundation, finds eight have done the most for Romney’s campaign. Each has raised large sums for the campaign and also contributed at least $500,000 to the pro-Romney super PAC.

They are:

Ed Conard1. Ed Conard of New York, NY. Romney’s former partner at Bain Capital, Conard headed Bain’s New York office and led the firm’s controversial acquisitions of large industrial companies. Conard is perhaps best known for his 2012 book Unintended Consequence:Why Everything You’ve Been Told About The Economy Is Wrong in which actually makes the case that American needs more income inequality and defends off-shoring of American jobs. He has claimed that “predatory lending and Wall Street greed did not cause the collapse of the housing market.” He has donated at least $1 million, to date, to Restore Our Future.

John Paulson2. John A. Paulson of New York, NY. The billionaire founder of Paulson and Co., among the world’s largest hedge funds, gained about $4 billion as the subprime mortgage market melted down in 2007. While he earns more in an hour than the average American earns in a year, he pays a lower tax rate, thanks in part to the hedge fund “carried interest” loophole. He has donated at least $1 million, to date, to Restore Our Future and let the Romney campaign hold an April fundraiser at his Manhattan townhouse.

Paul Singer3. Paul E. Singer of New York, NY. The billionaire manager of Elliott Management Corp., another major hedge fund, has been a persistent critic of the Dodd-Frank financial reforms and Federal Reserve Bank monetary policy. A major funder for right-wing media, the mainstream press has dubbed him a “vulture capitalist” for his controversial record of buying up debt from developing nations at a discounted price and then suing for full repayment. Fortune called him “a passionate defender of the 1%” and noted that he is viewed by many as “an intellectual with the tenacious spirit necessary to help them turn back the clock on regulation and resist higher taxes on the wealthy.” Singer is chairman of the the anti-regulation Manhattan Institute and has donated heavily to the Club for Growth. In one regard, his support for Romney is ironic, given that Singer is a strong supporter of marriage equality and his openly gay son married in Massachusetts in 2010 — despite Romney’s unyielding attempts to revoke that right from same-sex couples. He has donated at least $1 million, to date, to Restore Our Future.

4. Joseph W. Craft III of Tulsa, OK. The billionaire head of Alliance Resource Partners LP, a major coal producer, is the lone person on this list who did not make his or her fortune in investment banking or hedge-fund management. The coal industry has strongly opposed environmental protection standards that would hurt coal companies’ bottom lines and the pro-deregulation Romney campaign has hit the Obama administration repeatedly for what it calls a “war on coal.” Romney has proposed increasing production and consumption of dirty energy sources. Alliance owns and operates the Dotiki Mine in Providence, Kentucky, where two miners were killed in a roof collapse in April 2010. Alliance had been cited for 840 safety violations in the 16 months preceding the Dotiki collapse. He has donated at least $1,000,000, to date, to Restore Our Future and also has given $1,250,000 to Karl Rove’s American Crossroads.

William Laverack, Jr.5. William Laverack, Jr. of New Canaan, CT. The chairman and chief executive officer of Laverack Capital Partners, a privately-held investment firm, is also a senior advisor to Tiger Infrastructure, another private equity group known for investing sectors like power and natural resource infrastructure. The New York Times reported in February that his initial contributions to Restore Our Future appeared to hidden from public view. Tiger Infrastructure’s website highlights its investment priorities including “monopolies with sustainable competitive advantage underpinned by regulation, contracted revenues or barriers to entry.” He has donated at least $750,00 to Restore Our Future, to date.

Kelly Loeffler6. Kelly Loeffler of Atlanta, GA. The vice president of investor relations and corporate communications at IntercontinentalExchange, she helps lead a company that provides online marketplaces for investors to trade futures, energy contracts, and financial derivatives. The company has lobbied extensively on Dodd-Frank implementation, focusing on derivative rules. Before that, she held a similar position for Crossroads Investment Advisers, a private equity firm. She co-owns and co-chairs the Atlanta Dream, a WNBA franchise. Should Romney win Georgia, Loeffler will also serve as a Romney elector from that state. She has donated at least $500,000 to Restore Our Future, to date.

Warren Stephens7. Warren A. Stephens of Little Rock, AR. The billionaire head of Stephens Inc., an investment banking firm, has been an outspoken opponent of government regulation of business and Wall Street. He has complained that “CEOs literally cannot keep up with the changes in regulation and the behavior of the regulators” and has endorsed legislation to make it harder for government to regulate industry. He has called proposed increased taxes for billionaires like himself “just not a good idea,” putting him in line with Romney, who has proposed lower taxes for the richest Americans. He has donated at least $500,000, to date, to Restore Our Future.

Stephen Zide8. Stephen M. Zide of Old Greenwich, CT. The Bain Capital Private Equity managing director, is another former colleague of Romney’s. Zide reportedly is on the board of a Bain-purchased company that is laying off 170 employees and off-shoring jobs to China. He has donated at least $500,000, to date, to Restore Our Future.





The bundler data is based on a USA Today review of political fundraiser invitations. The Romney campaign has, steadfastly refused to disclose the identities of its campaign bundlers — except for a small list of registered lobbyists who bundle, as required by federal law. President Obama, on the other hand, voluntarily discloses all of its major bundlers, as did President George W. Bush (R) and Sen. John McCain (R-AZ) and in their 2000, 2004, and 2008 races.

Election

Employees Protest Bain, Romney As Their Jobs Are Outsourced To China

Sensata Technologies, an Attleboro, Massachusetts-based sensor manufacturer, is mostly owned by Bain Capital. As the company prepares to replace workers at an Illinois plant by offshoring jobs to China, soon-to-be laid off workers have been protesting both Bain Capital and the corporate values instilled by the company’s former CEO, Mitt Romney.

Several protesters descended on Sensata’s headquarters Thursday. A local paper reported that “about two dozen people, including six Sensata workers and supporters from Illinois, held signs and chanted: ‘We are from Freeport, we are united, we don’t want a Romney Economy.’” Protesters have asked Romney to intercede on their behalf, thus far to no avail.

During Tuesday’s presidential debate, Romney sought to deflect the politically embarrassing investment and argued that Obama too is invested in companies that outsource American jobs:

OBAMA: When he talks about getting tough on China, keep in mind that Governor Romney invested in companies that were pioneers of outsourcing to China, and is currently investing in countries — in companies that are building surveillance equipment for China to spy on its own folks. That’s — Governor, you’re the last person who’s going to get tough on China.

ROMNEY: Just going to make a point. Any investments I have over the last eight years have been managed by a blind trust. And I understand they do include investments outside the United States, including in — in Chinese companies.

Mr. President, have you looked at your pension? Have you looked at your pension?

OBAMA: I’ve got to say…

ROMNEY: Mr. President, have you looked at your pension?

OBAMA: You know, I — I don’t look at my pension. It’s not as big as yours so it doesn’t take as long.

ROMNEY: Well, let me give you some advice.

OBAMA: I don’t check it that often.

ROMNEY: Let me give you some advice. Look at your pension. You also have investments in Chinese companies. You also have investments outside the United States. You also have investments through a Cayman’s trust.

It is true that both Romney — who owns millions of dollars worth of Bain investments — and Obama — whose under $100,000 Illinois state pension plan holdings do mean both have some investment in Sensata. But that detail is quite misleading: Illinois state pensioners each have an average of about $11 invested in Sensata — hardly a significant stake. Romney, on the other hand owns hundreds of thousands of dollars worth of Sensata through his foundation and millions of dollars worth of the part of Bain that owns the bulk of the company.

More importantly, Obama never ran Bain. The protesters are not suggesting Romney’s holdings in Sensata are the problem. They are protesting the profits-over-people approach Romney brought to Bain, as he invested in companies that have been called “pioneers in outsourcing.

Election

Romney And Bain Boosted Agriculture Giant Monsanto In Spite Of Toxic Past

Biotechnology firm Monsanto Company, which currently owns most of the patents for America’s staple crops, is already cozy with American lawmakers. A new Nation report, however, indicates that “a very old friend in a very high place” may usher in the corporation’s most prosperous years yet.

The Nation’s investigative report has uncovered how Mitt Romney personally helped Monsanto shed its string of toxic chemical-related scandals and reinvent itself to dominate American agriculture. Monsanto, an early Bain & Company client, was so impressed with Romney that they started bypassing his superiors to deal with him directly. Romney’s close relationship with then CEO John Hanley prompted his boss to create Bain Capital to keep Romney from leaving and taking their largest consulting client with him.

From 1977 to 1985, Romney helped navigate Monsanto through very rocky waters. The agribusiness was flooded with lawsuits after Congress banned the toxic coolant PCBs, a Monsanto product that has been linked to cancer and neurological disorders. At the same time, Monsanto’s Agent Orange toxin, used to defoliate jungles in the Vietnam War, was linked to the contamination of millions of Vietnamese and American soldiers and had been dubbed “the largest chemical warfare operation” in human history.

Tom Philpott at Mother Jones dug up a 2002 article describing Monsanto’s attempts to hide its toxic waste disposal even after managers discovered fish “spurting blood and shedding skin” within 10 seconds of the PCB dump:

Monsanto Co. routinely discharged toxic waste into a west Anniston [Alabama] creek and dumped millions of pounds of PCBs into oozing open-pit landfills. And thousands of pages of Monsanto documents—many emblazoned with warnings such as “CONFIDENTIAL: Read and Destroy”—show that for decades, the corporate giant concealed what it did and what it knew.

Faced with costly litigation, Monsanto relied on Romney to create their new public image — one that did not involve poisoning soldiers or dumping chemicals in rivers:

Dr. Earl Beaver, who was Monsanto’s waste director during the Bain period, says that Bain was certainly “aware” of the “PCB and dioxin scandals” because they created “a negative public perception that was costing the company money.” So Bain recommended focusing “on the businesses that didn’t have those perceptions,” Beaver recalls, starting with “life science products that were biologically based,” including genetically engineered crops, as well as Roundup, the hugely profitable weed-killer. “These were the products that Bain gave their go-ahead to,” Beaver contends, noting that Romney was a key player, “reviewing the data collected by other people and developing alternatives,” talking mostly to “the higher muckety-mucks.”

These “life science products” are now Monsanto’s calling card and have allowed the company to completely dominate the agriculture world in spite of its dark past. Still, Monsanto continues to attract controversy, as several Occupy Monsanto protests plague their facilities this week. Their new line of genetically modified seeds and chemicals are unleashing even more problems, including a new crop of “super weeds” and “super pests” that have risen up in the pesticide arms race.

Romney was simply doing his job by helping Monsanto reinvent itself. Financially speaking, he succeeded immensely. However, he’s signaled that he would lift up the agricultural giant even higher should he become president; for one thing, his Agricultural Advisory Committee is packed full of Monsanto lobbyists and partners. As the 2012 Farm Bill seems destined to languish until after the election, Romney would undoubtedly approve the “Monsanto rider” tucked into the House bill that would render the USDA impotent in blocking unsafe or untested products, forbid outside studies of Monsanto products’ safety, and exempt itself from environmental law. It would also allow Monsanto to rush clearance of its not-yet-approved “Agent Orange corn,” designed to resist that same defoliant that led the company to pay out a $180 million settlement to 52,000 contaminated troops during its Bain years.

NEWS FLASH

Romney’s Former Company Under Investigation For Tax Evasion | Bain Capital, the private equity firm founded by presidential candidate Mitt Romney, is under investigation for questionable tax practices, according to the New York Times. Since July, New York Attorney General Eric Schneiderman has been issuing subpoenas to private equity firms including Bain, which he believes intentionally changed management fees into capital gains as a way of hanging onto millions of dollars that would have otherwise been taxed at a higher rate. Bain alone is estimated to have saved “more than $200 million in federal income taxes and more than $20 million in Medicare taxes.” It is unclear whether the tax strategy was used while Romney was at the helm of the company, but the Times reports that Romney is still making money on funds that are using the method in question. A lawyer who handles Romney’s money says he “can confirm that neither he nor the trust has ever done this, whether before or after he retired from Bain Capital.” Still, little is known about Romney’s finances, except that he makes a windfall on capital gains each year, since he has refused to release his tax returns.

Economy

Romney Invested In Company That Is Outsourcing Jobs, Forcing Workers To Train Their Chinese Replacements

Workers at Sensata Technologies, a business based in Freeport, Illinois, have been protesting Mitt Romney’s campaign stops across the country all summer because the company, which is owned by Bain Capital, is laying off workers in order to hire employees in China. Bain took control of Sensata in 2006; last year, it took over the Freeport plant and announced that it would layoff 165 workers and close it.

Some of the workers, according to Sensata employees, have been forced to train their Chinese replacements, adding insult to the injury that was their looming job loss.

Bain’s role in the layoffs hasn’t been a secret. But given that it took control of Sensata and the plant well after Romney’s departure from the firm, the candidate has thus far steered clear of the controversy, only drawing protests from the workers who want him to step in and stop the plant’s closure. But according to documents detailing Romney’s finances obtained and published yesterday by Gawker, his connection to Sensata is much more direct.

Romney held a direct investment in Sensata through one fund titled “Bain Capital Fund IX, L.P.,” dated December 31, 2009, meaning he has likely financially benefited from Bain’s ownership of the company in the past, and could benefit from the plant’s closure and the outsourcing of the jobs to China. According to his 2011 personal financial disclosure, Romney still holds the Bain Capital fund that contains the Sensata investment.

Romney has a history of outsourcing jobs as the chief executive of Bain Capital. The Washington Post reported in June that under Romney’s leadership Bain “invested in a series of firms that specialized in relocating jobs done by American workers to new facilities in low-wage countries like China and India.” Other companies in which the firm invested sent jobs to Mexico and other low-wage countries around the world.

While that history might be politically toxic, Romney’s proposals wouldn’t stop the outsourcing of American jobs. In fact, his plan to reform the corporate tax code by instituting a territorial tax system would make it easier for American companies to outsource jobs, while at the same time encouraging them to store even more money in offshore tax havens.

Sensata workers, meanwhile, are planning to protest Romney and Bain’s involvement in Sensata at the Republican National Convention next week.

Politics

Romney To Obama: Let’s Agree Not To Discuss My Business Record Or Tax Returns

Mitt Romney — who has placed his business record at the centerpiece of his presidential campaign — is now asking President Obama to stop discussing his tenure with Bain Capital.

During an interview with NBC’s Chuck Todd, the former Massachusetts governor asked Obama to avoid discussing “business or family or taxes or things of that nature”:

“[O]ur campaign would be — helped immensely if we had an agreement between both campaigns that we were only going to talk about issues and that attacks based upon — business or family or taxes or things of that nature.” [...]

“[W]e only talk about issues. And we can talk about the differences between our positions and our opponent’s position.” Romney said of his own campaign: “[O]ur ads haven’t gone after the president personally. … [W]e haven’t dredged up the old stuff that people talked about last time around. We haven’t gone after the personal things.”

The Obama campaign has turned Romney’s business past into a campaign issue, noting that the the governor himself touts that experience as his “main calling card” for setting the country on the right track.

Until recently, Romney seemed to agree. “Look, I’m very proud of my experience at Bain Capital. I hope people understand that I was investing other people’s money for them and was compensated if we were highly successful,” he told CNBC’s Larry Kudlow on July 23. “That’s the kind of record which I’m pretty proud of.”

Top surrogate and adviser John Sununu echoed this argument during a Romney campaign conference in May, saying, “I think the Bain record as a whole is fair game, and what you have to do is do an honest evaluation.”

Politics

Romney Made Repeated Trips To Bain, Weighed In On Business Decisions After 1999

As news organizations uncover more and more information about Mitt Romney’s tenure at Bain Capital, the Romney campaign has continuously shifted its own goalposts, first standing by its claim that Romney stepped down from Bain in 1999, then settling on the argument that Romney “retroactively” retired in 1999 despite remaining CEO through 2002.

On Wednesday, a new report from the Associated Press reveals that the former Massachusetts governor made several trips to Boston to meet with partners and other key employees at Bain Capital’s headquarters while running the Salt Lake City Winter Olympics. The details contradict Romney’s claim that he did not interact with the company after leaving in February of 1999. From the piece:

Several associates now say that Romney made repeated trips between Salt Lake and Boston, where he met at times with his former partners, mostly to discuss his severance from the firm. The Boston Globe reported last week that Romney also met with his Bain partners at a 15th anniversary celebration in Palm Beach, Fla., in early 1999.

“I was in Salt Lake City for three straight years. I don’t recall even coming back once to go to a Bain or management meeting. We were, I was out there running the Olympics and it was a full time job, I can tell you that,” Romney told CBS’ Jan Crawford earlier this month in an effort to defend his role with the company.

But one former senior Bain partner told the AP “that once Romney had accepted the Olympics position, he would ‘make suggestions but not decisions.’”

NEWS FLASH

Romney Campaign Won’t Say Who Was Running Bain After 1999 | Mitt Romney has insisted that he gave up all control of Bain Capital in February of 1999, right before the company invested in firms that sent jobs overseas and laid off thousands of workers. But on Monday, Romney’s senior adviser couldn’t say who was running the company in his absence. “You should check with Bain, but it wasn’t Mitt Romney,” Eric Fehrnstrom told Reuters’ Sam Youngman. Romney claims to have turned over day to day management of Bain to a management team after he left for the Olympics, though the company continued to list Romney as its CEO well into 2002.

Economy

How Romney Would Make It Easier For American Companies To Avoid Taxes, Outsource Jobs

Republican presidential candidate Mitt Romney’s plan to overhaul the American corporate tax code would “exacerbate the worst features of our current tax system” by giving corporations more than $1 trillion in tax breaks and providing an incentive to outsource jobs and stash profits overseas, according to Seth Hanlon, the director of fiscal reform at the Center for American Progress Action Fund.

While the United States already provides an incentive for companies to store profits in offshore tax havens instead of investing those profits at home, Romney’s plan to shift the U.S. to a territorial tax system would make the situation even worse, Hanlon wrote in a report published today:

Gov. Romney’s proposed exemption for foreign profits would exacerbate the worst features of our current tax system. It would:

Enhance the tax code’s rewards for moving jobs and investments overseas

Provide a gratuitous windfall to some of the very companies that have already shifted jobs and profits overseas

Further invite the offshore tax haven abuse that deprives the U.S. Treasury of tens of billions of dollars in revenue every year

The current system already encourages investment overseas, since corporations are allowed to defer tax payments on foreign profits until they “repatriate” them to the United States. Romney’s plan would exempt companies even from this tax, which will cost the U.S. $130 billion over the next decade. “When combined with Romney’s proposal to slash the top corporate rate from 35 percent to 25 percent, which would cost more than $900 billion, it pushes the total corporate tax cuts in the Romney plan to over $1 trillion,” Hanlon writes.

Romney’s reforms could also cost America jobs and invite further abuse of offshore tax havens, Hanlon writes. Because corporations would know they are permanently free from paying American taxes if they invest abroad, Romney’s plan would encourage such investments. Those investments would lead to 800,000 jobs in other countries, “potentially displacing U.S. jobs.” Economist Kimberly Clausing, Hanlon notes, “estimates that under a territorial tax system, even more profits of U.S.-based companies would shift to tax haven countries,” a problem that already costs the average American taxpayer $434 a year.

Bain Capital, the company Romney founded, routinely outsourced jobs to low-wage countries like Mexico, China, and Ireland while Romney was its chief executive, and it also utilized offshore tax havens in Bermuda and the Cayman Islands to help investors avoid American taxes. Now, his corporate tax reform plan would make it even easier for companies to do the same under the guise of “competitiveness.”

Economy

Woodward Dismisses Romney’s SEC Documents: Everyone Knows Financial Disclosures Are ‘Camouflages’ For Reality

Bob Woodward

On NBC’s Meet the Press this morning, Washington Post associate editor Bob Woodward dismissed SEC disclosure documents — the only transparency for corporations in our largely unregulated financial sector — as essentially meaningless forms that obscure what is really happening.

Woodward told host David Gregory that SEC documents that suggest Mitt Romney has been less than honest about his tenure at Bain Capital should be ignored:

WOODWARD: People who are relying on SEC documents know the value of SEC documents. I mean, they are camouflages for what’s really going. So that’s not really the issue.

Watch the video:

The U.S. Securities & Exchange Commission’s mission is “to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” Part of that involves “promoting the disclosure of important market-related information” so citizens, journalists, and investors can have accurate information about who is doing what and make educated decisions.

In 2002, Rep. Spencer Bachus (R-AL), now the chairman of the House Financial Services Committee, identified the SEC as being primarily responsible for both “defending capitalism but also vigilant in rooting out the excesses and rooting out wrongdoing.”

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