Private Equity Firm Hypocrisy
Deputy Obama campaign manager Stephanie Cutter wrote a memo last week blasting Mitt Romney for leading a private equity firm:
Mitt Romney has staked his entire candidacy on one claim: that his “real world” experience in the private equity business uniquely qualifies him to lead our economy and the nation. …
But in fairness, Romney’s objective in business was never job creation. As one of his colleagues recently told the Los Angeles Times:
“I never thought of what I do for a living as job creation,” said Mark B. Walpow, a former managing partner at Bain, who worked closely with Romney for nine years before forming his own firm. “The primary goal of private equity is to create wealth for your investors.” …
When asked by TIME Magazine whether Mitt Romney is a job creator or destroyer, Warren Buffett said that while businesses shouldn’t hang on to people they don’t need, “I don’t like what private-equity firms do in terms of taking out every dime they can and leveraging [companies] up so that they really aren’t equipped, in some cases, for the future.” Voters need to understand the kind of economy Mitt Romney’s experience entails – and it doesn’t sound like the kind of economy that’s built to last.
But apparently Cutter wasn’t always so opposed to private equity firms: she previously worked as a spokeswoman for J.C. Flowers … a private equity firm.