Ironically, despite making Mitt Romney’s former company Bain Capital and other private equity firms the target of its latest attack, the Obama campaign held a near-$36,000 per plate fundraising dinner at the home of Tony James, president of the nation’s largest private equity firm, Blackstone Group. Citing the president’s latest Romney-hit-piece, Glenn Beck blasted the hypocrisy shown by the president when it comes to private equity firms.
Obama’s condemnation of private equity hinges on the familiar narrative that the industry is renown for commandeering companies and slashing jobs, leaving untold numbers jobless — which is why it is doubly ironic that Blackstone has done just that. In August of 2006, just two months after closing the deal to purchase Travelport Ltd., Blackstone Group fired “scores of employees,” who, according to the Wall Street Journal, were “lugging boxes of personal belongings to their cars.” Blackstone laid of 841 employees, or 10% of Travelport’s workforce, and recouped its investment almost immediately.
Beck reviewed a mere fraction of the employees who lost their jobs and have suffered dire consequences as a result of Blackstone’s buyout.
Watch below as Beck dissects President Obama’s latest fact versus fictional reality.
One interesting point to note is that in contrast to staunch Obama supporter James, his boss, Stephen Schwarzman, is in fact an avid Romney-supporter, and has been an outspoken critic of Obama’s economic policies and routine vilification of private equity.