Tip:
Highlight text to annotate it
X
.
>>> WELCOME TO "POLITICSNATION."
I'M AL SHARPTON.
TONIGHT'S LEAD, THE QUESTIONS
CONTINUE FOR MITT ROMNEY.
LATE TODAY MR. ROMNEY GAVE
INTERVIEWS TO FIVE DIFFERENT
NETWORKS INCLUDING NBC IN AN
EFFORT TO DIFFUSE THE
CONTROVERSY OVER BAIN CAPITAL.
FOR YEARS ROMNEY HAS BEEN SAYING
HE LEFT BAIN IN 1999 AND THAT HE
COULDN'T BE BLAMED FOR THE
THOUSANDS OF WORKERS LAID OFF BY
BAIN IN THE YEARS AFTER THAT.
HIS 2011 FINANCIAL REPORT SAYS
QUOTE, HE RETIRED FROM BAIN
CAPITAL ON FEBRUARY 11th, 1999.
QUOTE, SINCE FEBRUARY 11, 1999,
ROMNEY HAS NOT HAD AN ACTIVE
ROLE WITH ANY BAIN CAPITAL
ENTITY AND HAS NOT BEEN INVOLVED
IN THE OPERATIONS OF ANY BAIN
CAPITAL ENTITY IN ANY WAY.
ROMNEY SIGNED THIS DOCUMENT
PERSONALLY.
BUT TODAY NEW INFORMATION IS
EMERGING THAT TELLS A VERY
DIFFERENT STORY.
BUILDING ON WHAT WE LEARNED
EARLIER THIS WEEK, DOCUMENTS
GIVEN TO A MASSACHUSETTS
COMMISSION IN 2002 SHOW ROMNEY
STILL HAD FULL OWNERSHIP IN AT
LEAST SIX BAIN ENTITIES WHILE HE
WAS IN UTAH MANAGING THE
OLYMPICS.
AND THE COMMISSION FOUND ROMNEY
WAS STILL SERVING ON THE BOARDS
OF COMPANIES THAT HAD BAIN
OWNERSHIP STAKES IN STAPLES,
MARRIOTT, AND LIFE LIKE.
ALL THIS PAPER WORK SHOWS ROMNEY
STILL OWNED BAIN THREE YEARS
AFTER HE SAYS HE RETIRED FROM
THE COMPANY.
NOW, HIS OPPONENT IN 2002'S
GOVERNOR RACE SHANNEN O'BRIEN
HAMMERED HIM ON EXACTLY THIS
POINT.
>> THE FACT IS YOU ARE STILL
SIGNING DOCUMENTS AS CEO OF THE
COMPANY WHILE YOU WERE AWAY.
AND AS A MATTER OF FACT, IN THE
SUMMER OF 2001 WHEN YOU WERE
LEAVING THE OLYMPICS, YOU
ACTUALLY MADE A STATEMENT IN THE
PAPER THAT IN THE SUMMER OF 2001
YOU WERE FINALLY RELINQUISHING
100% CONTROL OF YOUR POSITION
WITHIN BAIN.
>> ROMNEY'S ANSWER THEN WAS THE
SAME AS HIS ANSWER NOW.
DENY EVERYTHING.
>> I WAS OUT IN UTAH FULL-TIME.
I HAD NO RESPONSIBILITY FOR
MANAGEMENT AT BAIN CAPITAL.
I WAS NOT RUNNING BAIN CAPITAL
AND THEREFORE AM NOT RESPONSIBLE
FOR THE ACTIONS OF BAIN CAPITAL
WHEN I LEFT.
>> NOW, AGAIN, ALL THIS MATTERS
BECAUSE ROMNEY HAS BEEN TRYING
TO DUCK RESPONSIBILITY FOR THE
THOUSANDS OF PEOPLE WHO WERE
LAID OFF BY BAIN CAPITAL DURING
THOSE YEARS.
THESE ARE THE PEOPLE WHOSE
VOICES WE'RE HEARING IN TV ADS
RELEASED BY THE OBAMA CAMPAIGN.
>> IT WAS LIKE GOING TO WAR
EVERY SINGLE DAY.
THEY WERE STARTING TO TRY TO
FIGURE OUT WAYS.
>> WE STARTED HAVING QUALITY
ISSUES AT THAT PLANT.
>> THEY WEREN'T CONCERNED ABOUT
YOUR HEALTH.
IT WAS LIKE WORKING IN THE SWEAT
SHOPS OF THE '30s.
>> LIKE A VAMPIRE.
HE CAME IN AND SUCKED THE LIFE
OUT OF US.
>> THEY MADE AS MUCH MONEY OFF
IT AS THEY COULD, AND THEY
CLOSED IT DOWN AND FILED FOR
BANKRUPTCY WITHOUT CONCERN FOR
THE FAMILIES OF THE COMMUNITIES.
>> BAIN CAPITAL WAS THE MAJORITY
OWNER.
THEY HIRED THE MANAGEMENT.
MITT ROMNEY WAS DEEPLY INVOLVED
IN THE INFLUENCE THAT HE
EXERCISED OVER THESE COMPANIES.
>> NOW, THESE VOICES ARE WHY MR.
ROMNEY'S TIME AT BAIN MATTER.
AND WE NEED TO GET TO THE
ANSWERS.
JOINING ME NOW IS CHRIS HAYES,
HOST OF "UP WITH CHRIS HAYES"
HERE ON MSNBC AND AUTHOR OF
"TWILIGHT OF THE ELITES."
AND DAVID BERNSTEIN FOR "THE
BOSTON PHOENIX" WHO'S COVERED
ROMNEY FOR A LONG TIME.
HE BROKE THIS STORY BACK IN 2007
WHEN HE WROTE THAT ROMNEY WAS
STILL LISTED AS BAIN'S OWNER
LONG AFTER HE SUPPOSEDLY LEFT
THE COMPANY.
THANK YOU BOTH FOR JOINING ME,
FIRST OF ALL.
>> THANK YOU.
>> DAVID, LET ME START WITH YOU.
HOW CAN ROMNEY OWN A COMPANY BUT
NOT HAVE ANY RESPONSIBILITY FOR
IT?
IS THAT POSSIBLE?
>> SURE, IT'S POSSIBLE.
AND HE DOES SAY THAT.
WHAT'S BEEN KIND OF ODD IS THAT
HE AND BAIN ARE BOTH NOW SAYING
HE TOTALLY SPLIT TIES IN
FEBRUARY OF 1999 AND THAT IT WAS
JUST PAPER WORK AND THE
COMPLEXITY OF THE CORPORATE
STRUCTURE AND SUDDENNESS OF HIM
LEAVING IS WHY IT DOESN'T APPEAR
THAT WAY ON PAPER FOR ANOTHER
TWO AND A HALF TO THREE YEARS.
AND THAT'S CLEARLY NOT TRUE.
AS A MATTER OF FACT, AND THIS
WAS REFERENCED THAT THAT CLIP
YOU SHOWS OF SHANNEN O'BRIEN IN
THAT DEBATE, BUT IN AUGUST OF
2001 TWO AND A HALF YEARS AFTER
HE LEFT FOR UTAH, HE HELD A
PRESS CONFERENCE.
MITT ROMNEY HELD A PRESS
CONFERENCE TO ANNOUNCE THE
DECISION HE WAS GOING TO CUT
TIES WITH BAIN AND LEAVE THE
COMPANY, NOT COME BACK TO THE
COMPANY AFTER THE OLYMPICS.
THAT WAS TWO AND A HALF YEARS
AFTER HE LEFT.
>> SO HE HELD A PRESS CONFERENCE
TWO AND A HALF YEARS AFTER THE
DATE THEY'RE SAYING THAT HE LEFT
TO ANNOUNCE HE WAS FINALLY
LEAVING.
>> YES.
TO SAY THAT HE WAS CUTTING TIES
AND WOULD BECOME A PASSIVE
INVESTOR.
AND THAT WAS SORT OF FINALIZED
BY THE FOLLOWING YEAR.
BUT IT WAS PUT IN MOTION AT THAT
TIME.
SO THERE'S STILL BIG QUESTIONS
ABOUT HOW MUCH WAS HE INVOLVED,
DID THEY CONSULT WITH HIM, ASK
HIM.
DID HE HAVE AUTHORITY TO DO
THINGS HE COULD HAVE DONE?
COULD HE HAVE CALLED UP AND
STOPPED DEALS FROM GOING
THROUGH?
HE CERTAINLY WAS -- I DON'T
THINK THERE'S ANY DISPUTE ON
THIS FACT THAT YOU CAN HAVE --
THAT HE WAS THE OWNER, CEO,
CONTROLLER AND WAS ESSENTIALLY
ON SORT OF AN INFORMALLY DEFINED
LEAVE TO COME BACK WHEN HE
WANTED TO.
>> NOW, CHRIS, YOU'VE BEEN
FOLLOWING THIS CLOSELY AS WELL.
WHETHER OR NOT HE HAD
OPERATIONAL HANDS-ON MANAGEMENT
OR NOT, WE DON'T KNOW.
BUT WE DO KNOW HE SIGNED THE
S.E.C. FILINGS.
AND YOU DON'T SIGN THE S.E.C.
FILINGS IN ADVANCE TWO OR THREE
YEARS.
SO HE WAS ACTIVELY EVERY YEAR
SIGNING NEW FILINGS.
>> YEAH, EXACTLY.
EVERY YEAR THEY FILED.
HE'S VOUCHING TO REGULATORS
SAYING I'M CEO OF THIS COMPANY.
WHAT'S BIZARRE TO ME IS THEY
FIND THEMSELVES WHERE HE SEEMS
TO BE SIMULTANEOUSLY AWAY FROM
THE COMPANY AND RUNNING THE
COMPANY TWO TWO DIFFERENT
GROUPS.
THEY'RE TELLING THE FEDERAL
GOVERNMENT HE'S STILL THE CEO.
ALL OF THIS HAS BEEN DONE SO
THAT HE HAS SOME PLAUSIBLE
DENIABILITY IN THIS DEAL WITH
GST STEEL WHO FIRED A LOT OF
FOLKS AND SENT THE JOBS OVER.
WHAT GST STEEL DID WASN'T THAT
DIFFERENT FROM ANYTHING BAIN DID
IN THE YEARS WHEN ROMNEY WAS
ACTUALLY RUNNING BAIN.
I MEAN, BAIN WAS DOING WHAT BAIN
WAS DOING WHICH WAS IN SOME
CASES BANKRUPTING COMPANIES AND
IN OTHER CASES OUTSOURCING JOBS
BECAUSE THAT'S WHAT PRIVATE
EQUITY COMPANIES DO.
HE WAS DOING THAT THE WHOLE WAY
THROUGH.
THEY'RE NOW CAUGHT IN THIS TRAP
BY MAKING THIS DISTINCTION WHAT
BAIN DID BEFORE 1999 AND AFTER.
>> IT WAS IN EFFECT DOING THE
SAME THINGS.
>> YEAH.
IF YOU LOOK AT THE IMPACT PLANT
WHICH HAS BEEN FEATURING ADS
WITH ANY OPPONENT AGAINST MITT
ROMNEY.
THAT WAS HAPPENING WHILE HE WAS
THERE.
OUTSOURCING INVESTMENTS WERE
HAPPENING WHILE HE WAS ACTUALLY
THERE.
BAIN CAPITAL WAS THERE TO USE
LEVERAGE TO MAKE A LOT OF MONEY
FOR ITS SHARE HOLDS AND
MANAGERS.
WHEREVER THE CHIPS FELL IN THAT
PROCESS, THAT'S WHAT THEY WERE
DOING.
THAT WAS THE M.O. THE ENTIRE
TIME.
IT'S RIDICULOUS FOR HIM TO
CREATE THIS DISTINCTION BETWEEN
BAD BAIN ACTIVITIES IN 1999 TO
2002 AND GOOD ACTIVITIES BEFORE
THAT.
>> HE NEEDS THE DISTINCTION
BECAUSE HE'S TRYING TO SAY HE
WAS NOT INVOLVED IN LAYING OFF
WORKERS.
HE'S NOT INVOLVED IN
OUTSOURCING.
AND HE SAYS I OUGHT TO BE JUDGED
WITH MY BUSINESS EXPERIENCE.
NOT GOVERNOR OF MASSACHUSETTS
ABOUT BUSINESS.
WHEN WE STARTED LOOKING, HE
STARTED DOING A POLITICAL
MOONWALK.
DAVID BERNSTEIN, YOU WROTE IN
2007 THAT ALTHOUGH HE CLAIMED TO
HAVE SEVERED TIES WITH BAIN,
S.E.C. DOCUMENTS SHOWED ROMNEY
RETAINED 100% OPERATIONAL
OWNERSHIP OF THE COMPANY AND
SUBSIDIARIES THROUGH 2001.
AND IT WAS A PAPER FORMALITY.
THE FACT IS HE'S SIGNING THIS TO
THE FEDERAL GOVERNMENT AND THERE
ARE THINGS THAT HAVE GONE ON
WITH THE COMPANY.
ISN'T HE SIGNING AS THE CEO AND
IN EFFECT TO THE FEDERAL
GOVERNMENT REPRESENTING THAT HE,
IN FACT, IS RESPONSIBLE AS CEO
AND WHETHER HE HAD DIRECT
MANAGEMENT OR NOT, HE'S THE GUY
SIGNING THE REPORT.
>> YEAH.
I MEAN, YOU WOULD THINK SO.
AND THERE ARE CERTAINLY
SITUATION WHERE IS YOU CAN CLAIM
TO BE THE OWNER BUT NOT
NECESSARILY DIRECTLY INVOLVED IN
SOME OF THE MANAGEMENT, BUT HE
WAS ALSO CEO AND PRESIDENT.
ONE THING I WOULD SAY ALSO IS --
AND I TAKE CHRIS' POINT,IC HE'S
CORRECT ABOUT THESE OUTSOURCING
ISSUES.
IT DOESN'T REALLY MATTER WHERE
YOU DRAW THE LINE.
I THINK THAT THE PROBLEM THAT
HAS ROMNEY AND HIS TEAM TRYING
TO DRAW THAT DISTINCTION IS THAT
THERE ARE OTHER THINGS LIKELY TO
BE BROUGHT INTO THE
CONVERSATION.
SOME OF WHICH IN THAT ARTICLE IF
I CAN JUST BRAG ABOUT MY
ARTICLE.
>> KNOCK YOURSELF OUT.
>> BUT FOR INSTANCE, THERE'S A
DEAL WITH A COMPANY CALLED DDI
WHICH ENDED UP BEING
INVESTIGATED BY AS PART OF AN
INVESTIGATION THAT LEHMAN
BROTHERS PAID OVER A BILLION
DOLLARS TO SETTLE WITH HAVING TO
DO WITH ALLEGEDLY BAIN PEOPLE
PUTTING PRESSURE ON ONE SIDE OF
THE LEHMAN COMPANY TO JACK UP
THEIR RATING ON DDI WHICH LEHMAN
WAS ALSO HANDLING THE BANKING
FOR THE IPO AND ONE OF THOSE
KINDS OF DEALS.
ROMNEY'S NAME AND SIGNATURE ARE
ON THOSE DOCUMENTS OF SELLING
BAIN SHARES IN THAT.
BUT HE HAS ALSO MAINTAINED I HAD
NOTHING TO DO WITH THAT BECAUSE
THAT TOOK PLACE WHILE I WAS GONE
EVEN THOUGH HIS NAME IS ON IT.
AND SO ON.
AND THINGS CAN BE CONFLICT OF
INTEREST ISSUES AND SO FORTH
COULD COME UP.
AND ARE LIKELY TO COME UP AS
THIS GOES ALONG.
HE'D LIKE TO DRAW THIS
DISTINCTION NOW BEFORE THOSE
BECOME ISSUES.
>> CHRIS, I MEAN, CLEARLY
THERE'S A REASON FOR HIM TO TRY
AND DISTANCE HIMSELF.
BUT AGAIN, I REPEAT THE REASON
IT'S IMPORTANT, WE'RE TALKING
ABOUT PEOPLE'S JOBS.
WE'RE TALKING ABOUT A MAN THAT
WANTS TO BE PRESIDENT OF THE
UNITED STATES WHEN HE'S
OUTSOURCING.
AND TALKING ABOUT A MAN WHO HAS
BEEN DEALING IN THE CAYMAN
ISLANDS AND BERMUDA WITH HIS OWN
MONEY.
HE'S THE ONE THAT TOLD US JUDGE
ME BY MY BUSINESS EXPERIENCE.
HE SENT US TO BAIN.
WE WOULD HAVE GLADLY ASKED HIM
HOW AS GOVERNOR MASSACHUSETTS
CAME IN LAST IN JOB CREATION.
BUT HE GUIDED US TO BAIN.
NOW WE'RE THERE.
IT'S TOO MUCH PAIN IN BAIN FOR
HIM.
>> IT'S ALWAYS BEEN, I THINK, A
DUBIOUS ARGUMENT TO SAY THAT
RUNNING A PRIVATE EQUITY COMPANY
GIVES YOU THE TOOLS YOU NEED TO
CREATE JOBS FROM THE PERSPECTIVE
OF THE FEDERAL GOVERNMENT.
THE ENTERPRISES ARE SO DIFFERENT
IN SO MANY WAYS.
THE VALUES, THE STAKE HOLDERS,
WHO YOU LISTEN TO, WHO IS
DEPENDENT -- WHO YOU ARE
DEPENDENT UPON.
THEY'RE JUST SUCH DIFFERENT
ENTERPRISES.
IT'S A DUBIOUS ARGUMENT.
IT ALSO OPENED HIM UP TO -- THIS
TO THE AIRLINY OF THIS.
THIS IS THE THING THAT -- THIS
HAS BEEN EVERY CAMPAIGN HE'S
RUN, THIS IS WHAT THEY'VE
ATTACKED HIM ON.
THIS IS EVERY TIME HE'S RUN FOR
OFFICE.
THIS IS -- I MEAN, IT'S SO FUNNY
TO SEE THE ATTACKS PLAYED IN THE
GUBERNATORIAL RACE.
SUCCESSFUL.
>> SO SURPRISED.
I'VE GOT TO LET IT GO THERE.
THANK YOU FOR JOINING ME
TONIGHT.
DAVID, LET ME TELL YOU, HAVE A
GREAT WEEKEND.
GET ON A TREADMILL, GET YOUR
TEA, AND YOU WATCH "UP WITH
CHRIS HAYES" ON SATURDAYS AND
SUNDAYS FROM 8:00 TO 10:00 A.M.
THAT'S WHAT I DO.
>> YOU GOT IT.
>>> WE HAVE NEWS AHEAD.
MITT ROMNEY RESPONDS FOR THE
FIRST TIME TO THE BAIN
CONTROVERSY TONIGHT.