Part 1—Romney’s bad conduct: Is Mitt Romney a sociopath?
It’s certainly possible! A certain percentage of adults are; we’ll guess that some of them hold high office. Then too, there’s the way the gent behaved when he was running Bain Capital.
On January 6 of this year, Reuters published a lengthy report about Romney’s conduct at Bain. Six nights later, Ed Schultz discussed the matter with David Cay Johnston, the Pulitzer-winning journalist who is now a professor.
(Who the heck is Reuters? See below.)
Johnston is a rarity among cable guests; he actually knows what he’s talking about, and he care about things that matter. Here are the highlights of his discussion with Schultz:
SCHULTZ (1/12/12): In 1993, Bain Capital became the majority shareholder of a Kansas City steel mill. Now according to Reuters, less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health care insurance that they had been promised. And their pension benefits were cut by as much as $400 a month.Bain underfunded the workers’ pension fund, then “fobbed [the problem] off on the Pension Benefit Guaranty program.” In the process, Romney and Bain walked away with extremely large profits. Workers got cheated out of a substantial portion of their retirement benefits—benefits they had bargained for.
How’s that for treating the workers good?
The remaining [reduced] benefits, by the way, were paid by the Pension Benefit Guaranty Corporation, a pension protection agency in the United States government.
SCHULTZ: Did Bain profit from reducing pensions?
JOHNSTON: Oh, there’s no question that they were able, in the particular case that was mentioned involving the steel mill, to take money out of this company, it didn’t have a properly funded pension, and fob it off on the Pension Benefit Guaranty program, is clearly an important part of this story. There are other parts of it that have not come out yet with other companies, where they made changes to the benefit programs for workers.
The federally-administered Pension Benefit Guaranty Corporation (PBCG) had to bail out this company’s pension fund, which Bain had essentially looted. (This did not restore the full pension to which the workers were entitled. And the health care was gone.) In his discussion with Schultz, this was Johnston’s first remark concerning this conduct:
JOHNSTON: The record on Romney is somewhat mixed. There are companies that they essentially bought, sucked all the cash out of them, and then left behind. And I think the pension guaranty issue is one that will cause him a lot of problems. And a lot of explaining is necessary about why the government had to step in in this area.“I think the pension guaranty issue is one that will cause him a lot of problems,” Johnston said. “And a lot of explaining is necessary about why the government had to step in in this area.”
Johnston’s remarks made perfect sense—but in the end, it seems that Johnston was wrong about the potential political costs. Consider the way the Washington Post reacted in the aftermath of that detailed report by Reuters:
The Washington Post wrote next to nothing about the looting of GS Industries. On January 11, an editorial included a fleeting reference to GS. In its news reporting, the Post has virtually never referred to GS at all.
Right to this day, we can find no sign that the Washington Post has ever mentioned the way the PBCG had to cover for Romney. (Using Nexis, we searched on such terms as “Pension Benefit” and “PBGC.”)
Reuters devoted thousands of words to Romney’s conduct with respect to GS. Johnston said “a lot of explaining is necessary about why the government had to step in in this area.”
But for readers of the Washington Post, this conduct never occurred. If you read the Washington Post each day, you’ve never heard about it.
To fate, the Washington Post has taken a total pass on the looting of GS. Now consider what the Post did on the front page of last Friday’s paper.
The paper published a 5400-word report about Romney’s experiences in high school. The report appeared at the top of the front page, accompanied by three photos. Inside the paper, the continuation of the report consumed two entire pages. Three more photos appeared.
This report was built around the claim that Romney behaved quite badly on several occasions during his high school years. Jason Horowitz wrote the report. Here’s how it began:
HOROWITZ (5/11/12): Mitt Romney returned from a three-week spring break in 1965 to resume his studies as a high school senior at the prestigious Cranbrook School. Back on the handsome campus, studded with Tudor brick buildings and manicured fields, he spotted something he thought did not belong at a school where the boys wore ties and carried briefcases. John Lauber, a soft-spoken new student one year behind Romney, was perpetually teased for his nonconformity and presumed homosexuality. Now he was walking around the all-boys school with bleached-blond hair that draped over one eye, and Romney wasn't having it.Assuming the Post’s basic reporting is accurate, Romney behaved extremely badly this day. In the past five days, liberal comments threads have rung with the charge that this incident—and Romney’s reaction to the Post’s report—show that he’s a socio.
"He can't look like that. That's wrong. Just look at him!" an incensed Romney told Matthew Friedemann, his close friend in the Stevens Hall dorm, according to Friedemann's recollection. Mitt, the teenage son of Michigan Gov. George Romney, kept complaining about Lauber's look, Friedemann recalled.
A few days later, Friedemann entered Stevens Hall off the school's collegiate quad to find Romney marching out of his own room ahead of a prep school posse shouting about their plan to cut Lauber's hair. Friedemann followed them to a nearby room where they came upon Lauber, tackled him and pinned him to the ground. As Lauber, his eyes filling with tears, screamed for help, Romney repeatedly clipped his hair with a pair of scissors.
Is Romney a sociopath? It’s certainly possible! But then too, how about the editors of the Washington Post? The paper devoted massive resources to this incident, engaging in apparent journalistic malpractice as they did. (We refer to the highlighted claim in the passage above. More on this matter tomorrow.)
But the Post has completely failed to report on that unfortunate conduct at Bain, the conduct Johnston mistakenly thought would create a political problem.
Was John Lauber “perpetually teased for his presumed homosexuality?” Given 5400 words, Solomon presents no evidence in support of this statement—zero; none—but he led his report with this claim. We liberals have reacted in predictable ways, discussing Romney’s presumed homophobia—and his possible sociopathy.
Lauber should not have been treated that way, assuming the Post’s reporting is accurate. But what about the many people whose pensions got looted by Romney and Bain? The Post has taken a total pass on that particular bit of behavior. For the most part, so did the children at MSNBC, even as they stuffed their own pockets with cash—the cash they gain from pandering to The Way We Actually Are.
Can we talk? In many respects, The Way We Are is extremely unimpressive. As a people, we’re intellectually stunted. Increasingly, we liberals make this fact clear in our comment threads, as conservatives have done, for the past three decades, in phone calls to radio programs.
At one time, journalistic norms protected us from this shortcoming. Now, just as Romney sucked on GS, brilliant hustlers all over the press corps suck on this part of our nature.
Tomorrow: Don’t need no stinking evidence
Reuters got it right about Lincoln: Who the heck is Reuters? It’s an international news agency headquartered in London—England, not Ohio!
According to Wikipedia, Reuters has been getting it right for a very long time:
WIKIPEDIA: Over the years Reuters' agency has built a reputation in Europe and the rest of the world as the first to report news scoops from abroad. Reuters was the first to report Abraham Lincoln’s assassination among other major stories. Almost every major news outlet in the world currently subscribes to Reuters. Reuters operates in more than 200 cities in 94 countries in about 20 languages.Same old story! Everyone subscribes to Reuters—and no one discusses what they report!
Did Reuters get it right about Bain? More on that as the week continues.
Bob, Bob, Bob!ReplyDelete
Right now, the Google thingy returns about 12.6 million hits for the search: Romney pension raider.
That proves that the press coverage has been more than adequate.
Hate to break the news to you since you are such a devoted follower, but Bob once again is showing this POV doesn't extend much past the Potomac River.Delete
That particular Reuters story about Bain gutting the KC steel mill was picked up and widely broadcast and published through most of the United States -- except in the Washington Post, apparently.
It was quite the hot campaign issue as well, with Newt brandishing the term "vulture capitalist."
But since it didn't appear in the Post, at least as original Post reporting (it is hard to believe they ignored it entirely) it didn't happen. Or so goes the Somerby logic.
Oh, and it is quite rich that Somberby is now citing Ed Schultz's interview with David Cay Johnston as particularly illuminating.
Back in January, Schultz devoted several days to this topic, and Somerby devoted several posts parsing every word for what Schultz was doing wrong.
Didn't Romney leave Bain two years before GSI declared bankruptcy?ReplyDelete
Yes, but the company was acquired in 1993, held for 8 years and bankrupted in 2001.Delete
Romney's tenures at Bain were 1984-90 and 1992-99.
This just in this morning:ReplyDelete
"Obama Campaign Targets Romney's Bain Capital Record"
"President Barack Obama's reelection campaign on Monday morning opened a new front in its election faceoff with presumptive GOP nominee Mitt Romney, releasing documentary-style videos and a full website portraying Romney as a job-destroying corporate takeover artist.
The Obama campaign put out a two-minute video and a six-minute video featuring interviews with former workers at GST Steel, a company acquired by Romney's private equity firm Bain Capital in 1993. GST shut down its Kansas City plant in 2001, costing about 750 workers their jobs."
To be fair to Wapo, they did publish this article on December 14, 2011 three weeks prior to the Reuters report:
"Mitt Romney’s Bain Capital tenure shows mixed record on bankruptcies"
We may argue about the of degree of coverage versus the hair-cutting story but Mr. Somerby can't claim there's been almost no coverage of Romney's Bain days.
Romney's Bain career has been a matter of the public record, as much as a private company can be public, since he ran against Ted Kennedy.
It seems to me the story of Romney's prep school days was a one-off, just like the Times 2008 story about Obama's was while the Bain story is enduring and will provide many bites at the apple for both "tribes."
"We may argue about the of degree of coverage"Delete
Is this wrong:
There is "no sign that the Washington Post has ever mentioned the way the PBCG had to cover for Romney."
The story you cite certainly doesn't mention any impacts on healthcare or pensions...
The Wapo story, written as the primary season was getting underway, is a more general story than the Reuters report.Delete
It didn't go in-depth about GST.
No doubt the GST story and Romney's entire Bain tenure are more important in the long run than stories about his prep school days.
However, both can be covered and the public will decide how much weight to give each.
Look at the number of comments the Dec. Wapo article drew, around 90, compared to what the hair-cutting report drew.
Is it wrong to say the public is interested in the prep school of story?
So while its correct to say there is "no sign that the Washington Post has ever mentioned the way the PBCG had to cover for Romney" I would not assign as much significance to that fact as Mr. Somerby has.
Its not like the GST story isn't out there and getting major play by the Obama campaign.
"It didn't go in-depth about GST"Delete
That is to say, it didn't mention it at all, as Bob said, and you now finally appear to agree.
You just don't think it matters that WaPo never covered it!!
Fine, that's a fool's prerogative.
But it doesn't make Bob wrong for pointing it out.
"That is to say, it didn't mention it at all, as Bob said, and you now finally appear to agree."Delete
If you had bothered to read the Wapo story you would have found:
"A year after the Ampad deal, Bain acquired steel firm GS Industries. In 2001, the company filed for bankruptcy."
That is, they mentioned it but didn't go in depth about the pension problems like the Reuters article.
You're even misrepresenting Mr. Somerby's position. He doesn't say Wapo doesn't mention GST but rather "The Washington Post wrote next to nothing about the looting of GS Industries."
Those are the facts.
What I disagree with Mr. Somerby about is the significance of Wapo's coverage especially since, in these early days of this general election campaign, the Obama campaign has put Bain and GST front and center.
"Workers were denied the severance pay and health care insurance that they had been promised. And their pension benefits were cut by as much as $400 a month."ReplyDelete
"There are companies that they essentially bought, sucked all the cash out of them, and then left behind" (emphasis added)
"the looting of GS Industries"
Some strong accusations are made against Bain, but IMHO they don't stand up. Did Bain break any laws? Apparently not. Did Bain break any promises Bain had made? Apparently not. Did Bain get their assignments via bribery or other unethical means? No, they were hired because they were very good at saving troubled companies.
Let's face it: If you're an employee (or a creditor) of a company that goes bankrupt, you're hosed. My daughter had this experience with an internet startup. Forget about losing benefits. The company owed her several weeks salary when they ran out of money and shut their doors.
Bain has no obligation to try to save a company on the brink of bankruptcy. Bain (or anyone else) won't take on that assignment, unless they get very favorable treatment. They're not going to walk into a situation where they might not get paid. The unfortunate employees are in a different situation. They're already hosed. That's why Bain made money, even when the company eventually failed and when employees lost part of their benefits.
Your implication here is that Bain made a hard-nose evaluation of the potential of each business, then saved the viable ones and shut down the doomed ones with minimum loss to all concerned.Delete
However, the evidence is that Bain bought healthy companies with low debt and high assets, leveraged them to the max, and liquidated the assists and stock for the profit of Bain's owners.
Legality is not the issue here.
What is disturbing is that a few wealthy men laid off workers and raided their pensions simply because they had the economic power to do so.
The early "economists" referred to themselves as Moral Philosophers.
If we were to judge many modern capitalists by the early moral standards, they would be pathetically deficient.
Ayn Rand would be jubilant.
Meanwhile in yesterday's New York Times we had this, the kind of serious issue Mr. Somerby claims isn't being covered:ReplyDelete
"Is There a Romney Doctrine?"
One thing we know for sure, it won't be Romney or his strapping sons hunting down and killing Taliban.Delete
They are committed to crusade of much greater import, that of saving America by making Barack Obama a one term President.
Much safer, too.
Since this is just "Part 1," how many more days do you suppose it will take Somerby to finish telling us that the prep school bullying story is insignificant?ReplyDelete
And who does he think he is convincing?
And here some of us thought we understood that the point was not that the bullying story is insignificant.Delete
We thought we understood that the point was that the WaPo chose to invest far more coverage in that story than they did in the issue of Bain Capital's impact on employee pensions and healthcare.
But you, freethinking man show us the way -- it's just that Bob is trying to say the bullying story is insignificant, that's all.
There's no broader issue about the WaPo.
Leave WaPo alone, Bob.
Who is Solomon? I take it you mean Horowitz?ReplyDelete
A story in today's WaPo by Rachel Weiner lets the earnest reader find the other side of the story, such as it is, in a Reuters article from January, wherein it is told that when Bain bought the Kansas City mill the mill's equipment was outmoded and its markets were shrinking. Through bond issues, Bain sent nearly a $100 million toward upgrading equipment, etc. A ten week strike in 1997 squeezed unsustainable concessions from the owners, and a stiff market, driven by uncivilized foreigners, provided the coup de grace.ReplyDelete
Or Romney is a sociopath.
"Through bond issues, Bain sent nearly a $100 million toward upgrading equipment, etc."ReplyDelete
That is to say, Bain added DEBT, underfunded pensions, and took profits.
For you the "foreigners" are "uncivilized" and only the union is to be be blamed if owners make an agreement you later call unsustainable.
That's called the religion of free markets, and you're a true believer Soja!
But you can't get away from this: Bain added debt, underfunded pensions, and took profits.
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