For nearly 20 years, Mitt Romney and his partners lived by the guiding principle that as long as they walked away with millions, it didn’t matter if companies went bankrupt and Americans lost their jobs. For GST Steel—a Kansas City company that had been in business for 103 years—Romney’s model led to the company’s bankruptcy and to 750 workers losing their jobs.
Now that he’s running for the presidency, Romney is trying to deny that he had anything to do with the consequences of his decisions.
Romney can’t wash his hands of the decisions his firm made while he was CEO. Even while running the Salt Lake City Olympics, he still owned and profited from Bain Capital’s corporate buyouts, including GST Steel. Here are the facts:
Romney was head of Bain Capital when the firm took control of the Kansas City plant in 1993.
Romney “remained CEO and held his financial interest in the company through August 2001,” which includes the period “when the Kansas-based GST Steel plant was shut down and workers laid off” in February of 2001. [Source: Boston Globe]
Romney claims to have severed ties with his firm in 1999, but, as the Washington Post notes, he maintained full sole ownership until 2001.
Romney was listed on multiple Bain filings in 2001 and 2002, still functioning as a general partner in several of the firm’s funds.
Romney continues to get a share of the firm’s profit now, bringing the Romney family millions of dollars each year. As the New York Times notes, “when it came to his considerable personal wealth, Mr. Romney never really left Bain.”
Romney had the right to run his business how he saw fit, but the decisions he made reflect the values he’d live by as president. He had no problem loading up companies like GST Steel with debt and leaving hundreds of Americans without jobs just so his investors could make millions. His current economic agenda is no different: budget-busting tax cuts for the very wealthy at the expense of the middle class.
GST Steel is only one example of how Romney’s principles impacted companies and workers across the country. Take a look at Romney Economics to see more, and then share it with your friends and family.