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Mitt Romney Has a Huge New Conflict-of-Interest Problem (bain and solamere)
Mitt Romney Has a Huge New Conflict-of-Interest Problem
If he jumps into the 2016 race, will Romney reveal the investors and investments of Solamere Capital, the $700 million private equity firm he runs with his son?
In 2012, Mitt Romney's career as a businessman who earned many millions of dollars became a net loss, as political foes slammed him for running Bain Capital, a private equity firm that invested in US companies that downsized and shifted jobs overseas and that obtained financial stakes in foreign companies that depended on US outsourcing for profits. At the same time, Romney, who refused to do a full release of his tax returns, was hit with questions (he didn't answer) about mysterious personal investments in offshore accounts. Should he mount a third presidential effort, as he has told GOP funders he is considering, all of these issues are likely to return. But there's another matter that will be be added to the pile of financial controversies for Romney to face: Solamere Capital, the $700 million private equity firm cofounded by his son Taggart that Romney has helped run since March 2013. Who has Romney been investing with, and what has he been investing in? These are questions that Romney 2016 will confront and that, no doubt, the firm will not want to answer.
In March 2013, Mitt Romney became chair of Solamere's executive committee and a member of its investment committee, and Solamere's bare website currently lists him as the executive partner group chairman. The site only describes the company as "a collection of families and influential business leaders leveraging their broad networks and industry expertise to invest strategic capital." But the firm has recruited scores of investors willing to give the Romneys millions, and it has invested in an untold number of other funds and companies. Any of these partiesthe investors or the investmentscould pose a conflict of interest for a presidential candidate or raise a significant question. Has Solamere invested in companies that outsource? Or in overseas firms that compete with US firms? Has it drawn investments from people or corporations at home or abroad that want to curry favor with a possible president? Might the companies and private equity firms Solamere invests in have an interest in lobbying a future Romney administration? There is no way for the public to know; the firm does not disclose any information on its investors or investments. So how will Romney respond to these and other questions about his work for Solamere?
. . . .
Solamere freely mixed politics and business. In June 2013, as it was hunting for investors, the firm sponsored a policy conference convened by Mitt Romney at an exclusive resort in Park City, Utah, which attracted Rand Paul, Chris Christie, and Paul Ryan as speakers. At the same timeand in the same placeSolamere hosted a conference for investors. As the Washington Post reported, "The concentration of wealthy Romney backers in one place is a natural draw for politicians with national ambitions. But, as Solamere investors acknowledged, the gathering also provided them with potential targets, lending the retreat an aura of personal enrichment along with the focus on public policy."
With Mitt Romney now an active participant in Solamere Capital, the implications for his potential presidential campaign are more serious. In the last days of the 2012 campaign, several liberal good-government groups and unions sent a complaint to the US Office of Government Ethics charging that the financial disclosure form Romney had filed as a presidential candidate was not in compliance with federal law because, in part, it did not list Solamere's holdings. On the form, Romney noted his family's investments in several funds, including Solamere's first fund, but he did not reveal what Solamere invested inmeaning the ultimate investment was not disclosed. As the complaint noted, "precisely because private equity firms typically invest heavily in a few select companies there is a far greater chance that ownership of these funds could lead to a conflict of interest." The Office of Government Ethics did not respond to the complaint, and the matter died.
Romney's Solamere issue will be different this time around. He's not a passive investor. He has helped run the firm and guide its investments for the past two years. He knows where the money is coming from and where it is going. There will be demands for him to reveal who he has been hobnobbing with financially so it can be ascertained if he is burdened by conflicts of interestor if he has been making money in a manner at odds with his public policy pronouncements. But firms such as Solamere thrive on privacy. Their investment picks are their secret sauce, and many of their investors might prefer being unnamed.
. . . .
http://www.motherjones.com/politics/2015/01/mitt-romney-new-private-equity-problem-solamere-capital
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Mitt Romney Has a Huge New Conflict-of-Interest Problem (bain and solamere) (Original Post)
niyad
Jan 2015
OP
2naSalit
(86,569 posts)1. Here's a nifty tool...
that is an interactive map of his relationships. If you double click Solamere on the map, it will expand to include those relationships. There's a toolbar along the left margin where you can remove all the external stuff and focus on the Solamere stuff. There are other double click items on that map which will open to identify many connections.
Try it...
http://www.muckety.com/Mitt-Romney/4446.muckety
djean111
(14,255 posts)2. None of that will bother GOP voters. At all.
He will just stonewall, like he did with the income tax returns.
Unless there is something that is out and out illegal - and someone is willing to prosecute him for it - this will not matter.
blkmusclmachine
(16,149 posts)3. Did Rmoney EVER release unredacted tax returns???
niyad
(113,275 posts)4. a couple of years' worth of heavily edited returns, if I remember correctly, and only after lots and
lots of protests.