EXCLUSIVE: Romney Invested Millions in Chinese Firm That Profited on US Outsourcing

[SunsetDreams]

EXCLUSIVE: Romney Invested Millions in Chinese Firm That Profited on US Outsourcing
The GOP candidate decries China poaching US jobs. But at Bain he held a large stake in a Chinese company that did just that.

Last month, Mitt Romney's campaign got into a dustup with the Washington Post after the newspaper reported that Bain Capital, the private equity firm the GOP presidential candidate founded, invested in several US companies that outsourced jobs to China and India. The campaign indignantly demanded a retraction, claiming that these businesses did not send jobs overseas while Romney was running Bain, and the Post stood by its investigation. Yet there is another aspect to the Romney-as-outsourcer controversy. According to government documents reviewed by Mother Jones, Romney, when he was in charge of Bain, invested heavily in a Chinese manufacturing company that depended on US outsourcing for its profits—and that explicitly stated that such outsourcing was crucial to its success.

This previously unreported deal runs counter to Romney's tough talk on the campaign trail regarding China. "We will not let China continue to steal jobs from the United States of America," Romney declared in February. But with this investment, Romney sought to make money off a foreign company that banked on American firms outsourcing manufacturing overseas.

On April 17, 1998, Brookside Capital Partners Fund, a Bain Capital affiliate, filed a report with the Securities and Exchange Commission noting that it had acquired 6.13 percent of Hong Kong-based Global-Tech Appliances, which manufactured household appliances in a production facility in the industrial city of Dongguan, China. That August, according to another SEC filing, Brookside upped its interest in Global-Tech to 10.3 percent. Both SEC filings identified Romney as the person in control of this investment: "Mr. W. Mitt Romney is the sole shareholder, sole director, President and Chief Executive Officer of Brookside Inc. and thus is the controlling person of Brookside Inc." Each of these documents was signed by Domenic Ferrante, a managing director of Brookside and Bain.

The SEC filings do not reveal how much Romney initially invested in Global-Tech (which is now known as Global-Tech Advanced Innovations). But Brookside first acquired 748,000 shares at a time when Global-Tech was mounting an IPO at $19 a share. If that was the purchase price Brookside paid, then Romney's firm originally invested $14.2 million in the company.

http://www.motherjones.com/politics/2012/07/bain-capital-mitt-romney-outsourcing-china-global-tech

Romocchio strikes again!

[Kingofalldems]

1. And the hits just keep on coming.

I am starting to question whether he will be nominated.

[SunsetDreams]

3. I don't know

since the GOP thinks they can just lie and distort their way out of anything, I think their stubborn ways will win the day.
Romney will be nominated.

[aint_no_life_nowhere]

5. Get that voter suppression drive into high gear

With a-scandal-a-day, Mittens is going to need it.

[BumRushDaShow]

2. "...Romney's tough talk"

They mean lies?

[SunsetDreams]

4. That's what

Romochhio does best.

[SunsetDreams]

6. .