Website Gawker Publishes Huge Cache of Confidential Bain Capital Documents — But are They Actually ‘Worthless’?
- Posted on August 23, 2012 at 2:37pm by
Becket Adams
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Gawker’s John Cook on Thursday published a massive cache of “confidential internal financial” documents that, he says, may shed some light on Republican presidential hopeful Mitt Romney’s tax-avoidance schemes.
But Fortune senior editor Dan Primack says Gawker’s huge dump is much ado about nothing.
However, before another word on the subject is said, it should be noted that neither the folks at POLITICO nor the folks at Gawker (nor this author) fully understand everything in these documents.
“These documents — not all of which are new — will require a great deal of vetting,” writes POLTICO’s Dylan Byers, eagerly adding that early “signs indicate that there are some new, and potentially controversial, details.”
“The documents are exceedingly complicated. We don’t pretend to be qualified to decode them in full, which is why we are posting them here for readers to help evaluate — please leave your thoughts in the discussion below,” Gawker’s John Cook writes.
That being said, is there anything of particular interest in the doc-dump? That is, were the folks at Gawker able to dig up any damning evidence against Romney?
Well, there’s this: Romney was given a stake in Sankaty Credit Opportunities L.P. as part of his retirement package in 1999. However, and this is a bit strange, Sankaty Credit Opportunities didn’t exist until 2002, according to Romney’s 2012 financial disclosure.
“In other words, Romney’s 1999 retirement agreement included an investment in an entity created in 2002 — in fact, was created in the heat of his first gubernatorial campaign in Massachusetts,” Cook writes. “When Romney explained at an October 29, 2002, debate in Massachusetts that he wasn‘t responsible for Bain’s actions after his 1999 retirement, it was just 8 weeks after the creation by Bain of a fund that was part of his retirement agreement.”
You know what this means, right? This means the “When Did Romney Really Retire?” game may be back in play.
Anyway, Cook is pretty confident that they’ve hit the motherload (although they’re not sure what, exactly, they’re looking at) and claims the cache reveals:
…the mind-numbing, maze-like, and deeply opaque complexity with which Romney has handled his wealth, the exotic tax-avoidance schemes available only to the preposterously wealthy that benefit him, the unlikely (for a right-wing religious Mormon) places that his money has ended up, and the deeply hypocritical distance between his own criticisms of Obama‘s fiscal approach and his money managers’ embrace of those same policies.
But wait, that raises a question: While you may not approve of Romney’s wealth or how he has invested it, do the docs actually reveal any specific wrongdoing? Here’s the thing: After a cursory overview (emphasis on overview) of the documents, this author was unable to find anything particularly damaging.
And don’t take our word for it. Fortune’s senior editor Dan Primack says Gawker is simply wasting its breath.
“I saw many of the exact same documents months ago, after requesting them from a Bain Capital investor. What I quickly learned was that there was little of interest, except perhaps for private equity geeks who want to know exactly how much Bain paid for a particular company back in 2006,” writes Primack.
“Sure I would have loved the pageviews, but not at the expense of tricking readers into clicking on something of so little value,” he adds.
Ouch. He goes on to critique and/or correct each of Gawker’s possible “finds” including:
- Bain’s Cayman Islands accounts: “the reality is that most private equity firms form Cayman-domiciled funds to accommodate investors based outside of the United States (particularly when those funds also are making some non-U.S. investments).”
- The fact that Romney’s retirement package involves companies created after he left Bain in 1999: “[H]is retirement package provided Romney with ownership positions in Bain funds raised for 10 years after he left the firm (plus the ability to co-invest his own money). This isn’t breaking news (mentioned here, for example).”
- On the “mystery” surrounding Romney’s holdings: “There actually is plenty of data on Romney’s Bain-related holdings. For example, Bain’s own website lists most of its active private equity portfolio companies. Then there are third-party databases operated by such organizations as Dow Jones, Thomson Reuters and CapitalIQ — each one of which includes searchable lists of past Bain Capital deals (often with detailed financial information).”
“I totally understand why a stack of papers marked ‘confidential’ seems exciting, particularly for those without a deep understanding of private equity. And I‘m not taking any position on if Romney did or didn’t duck taxes at some point, either related or unrelated to Bain holdings. All I’m saying is that Gawker has posted tons of smoke without any fire,” Primach adds.
UPDATE — As noted by National Review’s Kevin D. Williamson, there’s a huge, glaring irony in Gawker breathlessly reporting on Bain’s Cayman accounts [via John Cassidy of the The New Yorker]:
Much of [Gawker's] international revenues are directed through Hungary, where [bossman Nick] Denton’s mother hails from, and where some of the firm’s techies are located. But that is only part of it. Recently, [Felix] Salmon reports, the various Gawker operations — Gawker Media LLC, Gawker Entertainment LLC, Gawker Technology LLC, Gawker Sales LLC — have been restructured to bring them under control of a shell company based in the Cayman Islands, Gawker Media Group Inc.
Why would a relatively small media outfit based in Soho choose to incorporate itself in a Caribbean locale long favored by insider dealers, drug cartels, hedge funds, and other entities with lots of cash they don’t want to advertise? The question virtually answers itself, but for those unversed in the intricacies of international tax avoidance Salmon spells it out: “The result is a company where 130 U.S. employees eat up the lion’s share of the the U.S. revenues, resulting in little if any taxable income, while the international income, the franchise value of the brands, and the value of the technology all stays permanently overseas, untouched by the I.R.S.”
So, yes: Gawker just published a story “tsk-tsking” Romney for managing his money the same way Gawker manages its own money.
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Comments (83)
jadams1214
Posted on August 23, 2012 at 5:19pmthe only records we should be looking at are voting records and governing records.obama and romney/ryan have alot in common as far as these records go.
Report Post »Gold Coin & Economic News
Posted on August 23, 2012 at 5:53pmRegardless of how much Obama has a record of doing absolutely nothing and hiding behind Romney attacks, idiots will still vote for this loser:
Report Post »https://www.youtube.com/watch?v=wTRqjpK6ScQ
FreedomPurveyor
Posted on August 23, 2012 at 6:25pmMitt Romney has never held a legislative position, so he has no voting record, and Obama had no governing experience prior to being elected. What exactly are you comparing?
Report Post »jadams1214
Posted on August 23, 2012 at 6:46pm@FREEDOMPURVEYER romney was governor of mass. for four years. of course you don’t want to mention that because he governed like a liberal.
Report Post »mecanic
Posted on August 23, 2012 at 7:23pm@gold coin and en,……..is that a home movie of your family you keep posting on EVERY STORY……..idiot.
Report Post »soybomb315_II
Posted on August 23, 2012 at 7:26pmoh the republicans dont want to look at Romney’s governing records….
Report Post »turkey13
Posted on August 23, 2012 at 8:03pmSome idiots will try to find a f_art in a 40 mph wind. If Romney were just at Bain Capital for 6 months, he at least ran a business and employees said “Yes Sir & No Sir.” While Obama was a communuity organizer people said, “Hey Whats Up Bro & Whats Happening Man.” Which one of those persons would you want running the country?
Report Post »jadams1214
Posted on August 23, 2012 at 8:17pm@TURKEY13 we;re talking about governing and he didn’t govern mass. like he ran bain. bain was his money and mass. was the taxpayers money.big difference
Report Post »Bluebonnet
Posted on August 23, 2012 at 9:05pmRomney’s background with Bain is an open book, let’s move along, there’s nothing but business here.
Report Post »On the other hand, obama has very deceptive records and background that he’s spent millions covering up.
What, except what’s been speculated, has this man been involved in? hmmm? I vote for Romney, because I do believe he’s an honest person, whereas, obama is hiding too much and looks suspicious.
sbenard
Posted on August 23, 2012 at 10:00pmSparrows and jetliners both have wings. Would you also suggest they are the same? If so, may I suggest you go fly a sparrow the next time you fly. Just do us a favor and launch from the edge of a cliff!
Report Post »Hobbs57
Posted on August 24, 2012 at 1:48am@JDAM and SOYBONE – 85% democrat legislator, Romney did what he could, “Romney vetoed 844 pieces of legislation, with over 700 overridden.” SO shove it !
Report Post »k8ti
Posted on August 23, 2012 at 5:07pmWho cares!!!!!!!! Meanwhile, our country continues to go down the tubes because Obama and his corrupt policies continue to affect ALL OF US!
I mean honestly, I’m supposed to be more upset about what Romney does with his OWN money, than what Obama does with ALL OF OURS????
Report Post »soybomb315_II
Posted on August 23, 2012 at 10:17pmheads up – there is probably going to be a lot of information about Bain using corporate tax shelters (while Romney was CEO)
Report Post »JUSTANOTHEROPINION
Posted on August 23, 2012 at 4:50pmI’m still waiting for one, I mean just show me one thing to justify Obamas re-election. They can’t because there has to be something to find something that is why they attack Romney instead of promote Obama.
Report Post »k8ti
Posted on August 23, 2012 at 5:09pmExactly, all Obama does it throw out meaningless distractions to hide behind (he’s a coward). And he has most of the media in his pocket so they make a huge deal about nothing….when they should be making a huge deal about the shape our country is in right now!!!
Report Post »jadams1214
Posted on August 23, 2012 at 5:10pmjust show me one reason in the romney/ryan records to vote for them.just one
Report Post »soybomb315_II
Posted on August 23, 2012 at 7:35pmshow me one reason why Obama OR Romney should be president of this country
Report Post »jadams1214
Posted on August 23, 2012 at 8:13pm@SOYBOMB315-II i can‘t show you any reason either one should be pres and i won’t vote for either one.
Report Post »slr4528
Posted on August 23, 2012 at 4:44pmHas Romney been charged by the IRS? NO Did Romney break any laws? NO Is Romney Wealthy?Yes
So this is the Democrats new shiny object for the week of the convention to distract from the convention and the real issues of the day! This election is really getting predictable and pathetic.
Report Post »OneTermPresident
Posted on August 23, 2012 at 4:20pmWhen Obama was trying to put together his team after he was elected he couldn’t swing a dead cat around without hitting a Democrat tax cheat… remember? Damn near everyone he tried to appoint was one.
Report Post »jujubeebee
Posted on August 23, 2012 at 4:56pmGood point! I think it would be cool if Romney let them rattle on for a while on this taxes issues and then just whip out the returns showing he paid 13 or 15 effective percent and kept emphazing the fact it would have been 20% if he had not given to charity. Let them rattle for a while so people remember their harping on and then just prove them wrong.
Report Post »Obama has zero qualifcations to be president. He has zero qualifications to know how to create jobs and has no one in his cabinet with any business experience. He is the worst president we have ever had. I am so sick of him.
Garman1
Posted on August 23, 2012 at 4:15pmSankaty Advisors, LLC was started in 1997. Fund names can change from the original. Here is a link validating this information. http://www.psers.state.pa.us/content/board/resolutions/2012/res21_sankaty.pdf
Aligns with with when he retires in 1999 as argued to the contrary in this article.
Report Post »RNR2012
Posted on August 23, 2012 at 4:00pmWell, by all means… keep throwing things against the wall to see what sticks. Anything to distract us from what we should really be concerned about: unemployement/ lack of jobs; securing the borders; imminent war in the middle east; etc. No, no, no!!! Let’s all talk about all things irrelevant. Good Lord! R&R 2012.
Report Post »CatB
Posted on August 23, 2012 at 4:39pmYes .. let them get them out now … lies, lies, and more lies
Report Post »tekknyne3
Posted on August 23, 2012 at 3:39pmI think it’s funny how most conservatives look to laws or the Bible to guide them on rights and wrongs.
Report Post »The truth is that they have no real understanding of the concept.
winin2012
Posted on August 23, 2012 at 4:23pmWhat? tekknyne3 once again, a Lin make outrageously wild comment with nothing to back it up. So tekknyne3, are you suggesting conservatives come to Libs like for our “guidance of right or wrong”? Surely you jest!
When you have a real argument, come back.
Report Post »k8ti
Posted on August 23, 2012 at 5:11pmTekknyne3…..I think it’s funny that liberals have no morals or knowledge of right vs. wrong!
Report Post »Just_Us2
Posted on August 23, 2012 at 3:31pmI think what this really reveals is that our tax system is way too complex.
Report Post »nzkiwi
Posted on August 23, 2012 at 3:58pmAs is our tax system.
Report Post »contkmi
Posted on August 23, 2012 at 3:27pmThe media double standard, even as evident as it is, is still breathtaking. Where is the outrage over Obama’s records, flip-flops, deceit and lawlessness?
This story is as funny as Piglosi demanding a bill be passed before knowing what’s in it. “Hey, look! Shiny!”
Nothing to see here, people. Move along.
Report Post »tekknyne3
Posted on August 23, 2012 at 3:27pmTo give but one example, there is a Bermuda-based entity called Sankaty High Yield Asset Investors Ltd., which has been described in securities filings as “a Bermuda corporation wholly owned by W. Mitt Romney.” It could be that Sankaty is an old vehicle with little importance, but Romney appears to have treated it rather carefully. He set it up in 1997, then transferred it to his wife’s newly created blind trust on January 1, 2003, the day before he was inaugurated as Massachusetts’s governor. The director and president of this entity is R. Bradford Malt, the trustee of the blind trust and Romney’s personal lawyer. Romney failed to list this entity on several financial disclosures, even though such a closely held entity would not qualify as an “excepted investment fund” that would not need to be on his disclosure forms. He finally included it on his 2010 tax return. Even after examining that return, we have no idea what is in this company, but it could be valuable, meaning that it is possible Romney’s wealth is even greater than previous estimates. While the Romneys’ spokespeople insist that the couple has paid all the taxes required by law, investments in tax havens such as Bermuda raise many questions, because they are in “jurisdictions where there is virtually no tax and virtually no compliance,” as one Miami-based offshore lawyer put it.
Report Post »contkmi
Posted on August 23, 2012 at 3:35pmUh, who cares? It’s his money. Did he break the law? Not according to the IRS.
Report Post »tekknyne3
Posted on August 23, 2012 at 3:37pmYou Blaze readers are some real idiots if you look at this guy as your hero. Women, Blacks, Mexicans, and other members of the free(thinking) world are laughing at you. We aren’t strong supporters of Obama, but we recognize a criminal when we see one.
Report Post »designbyinspiration
Posted on August 23, 2012 at 4:00pmTekknyne3, you are a clueless lib, and so wrong in many ways in every statement you typed.
1st – Mitts not our hero, he’s what was steered and blackmailed our way by statists on both sides.
2nd – Your need to isolate the colors of people show the racial divisions are on the LEFTS side, not ours. We simple have patriots. The colors matter not.
3rd – You libs can only spout off the talking points of the Dem party, ‘free thinking’ to you means brain freeze and ideology over facts and reality.
4th – ‘Recognize a criminal when we see one’ !?!? really?! BWAHAHAHAHAHahahah! OH my, tears of laughter streaming down my face! Thank you. thank you. whew! THAT was a good one. So, Obama, the great liar, violated law when he failed to disclose his real name ‘Berry Sotero’ for his Law license.. Just to make a point.
So wrong, and so delusional as to not see it.
So, what particular tax cheat in the current Admin are you rooting for?
Report Post »Which terrorist that Obambam consulted with?
Which felon that is recommending policy?
Which NAMBLA and GALA deviant that is in charge of schools?
Which Marxist that is heading up departments, committees, or is a Czar? (how appropriate)
tekknyne3
Posted on August 23, 2012 at 4:10pmDESIGNBYINSPIRATION — so what you‘re saying is that grumpy old clueless white guys are Mitt’s supporters? Good luck in November my friend.
Report Post »bigpew
Posted on August 23, 2012 at 4:13pm3. You are the ones being laughed at. You are the ones being deceived. Who gives a blinking care about what mexicans think? The ones here are stealers. They stole a citizenship that did not belong to them. Anyone who does not enter through the gate, but rather climbs over the fence is a liar and thief.
Report Post »-Jesus Christ
winin2012
Posted on August 23, 2012 at 4:27pmtekknyne3, “you recognize a criminal” Holder, Rangle, Obama, Clinton, Guitner, Recognize them?
Report Post »tekknyne3
Posted on August 23, 2012 at 4:44pmWho gives a blinking care about what Mexicans think!? LOLZ Sheltered much?
Report Post »bigpew
Posted on August 23, 2012 at 6:28pmYes in Christ
Report Post »Walkabout
Posted on August 23, 2012 at 3:26pmWe don’t pretend to be qualified to decode them in full, which is why we are posting them here for readers to help evaluate — please leave your thoughts in the discussion below,” – Gawker’s John Cook
i.e. we are throwing it up there to see if someone can spin it & see if it sticks.
Flat tax No deductions & therefore no second guessing or smearing. Yes, we would still need an IRS.
I never guessed at Gawkers political bent or thought about it. But now they have raise their colors, I’ll take note & take my business elsewhere.
Report Post »designbyinspiration
Posted on August 23, 2012 at 4:02pmA MUCH smaller IRS, but yes… In some stunted form.
Report Post »gb123
Posted on August 24, 2012 at 2:10amDidn‘t someone try this same tactic with Sarah Pailin’s emails a few years back. Did it work?
Report Post »AvengerK
Posted on August 23, 2012 at 3:18pmA few things come to mind with this stunt by Gawker.
They are ignorant to what they have in front of them so they’re asking the public to read it and understand it for them. This of course parallels the professional left’s assault on Sarah Palin where thousands of her emails were dumped and the lefties begged the public to find the dirt for them.
In both cases the left can produce nothing.
How morally bankrupt and self-deluded do you have to be to keep doing this? The American left is a vindictive cabal of spiteful little urchins.
Still doubt me? Look at “WANGO’s” posts.
Report Post »MittensKittens
Posted on August 23, 2012 at 3:32pmI could care less about his investments. I do know he has a better chance.
Report Post »Jenny Lind
Posted on August 23, 2012 at 4:28pmThank you, very well said. The lengthy “paper by a new name trying to impress us is as oolish as those who went through Sara’s e-mails and found out she was a good mom. I would imagine that Mitt has done some things for the protection of his family if something happened to him he knows she has an incurable disease, and loves his children and grandchildren, it’s called estate planning and I suspect he is very, very good at it.
Report Post »barber2
Posted on August 23, 2012 at 4:31pmOur Democrats are the political version of Anonymous : hackers and political hacks. Sneaky, under-handed, charlatans , character assassins, and liars.
Report Post »Popp40
Posted on August 23, 2012 at 3:18pmI wish I could take credit for this statement but I must give credit where credit is due…..the best way to summarize this whole situation is this:
Obama, all the Democrats, and the media want me to be mad over how Romney spent his own money, yet I am not suppose to be mad about how Obama spends our money.
Report Post »truthseekerusa
Posted on August 23, 2012 at 3:41pmBullseye! I want to know about Obama’s crony capitalism that rewarded the thugs that run the unions and the “green” investments that are now in the toilet.
Report Post »jadams1214
Posted on August 23, 2012 at 5:16pmryan voted for all that spending of taxpayer money.
Report Post »nobull14
Posted on August 23, 2012 at 3:16pmThe hell with Bain records !!!!!. Lets see Oblamo’s college records and some more of his past ?. Instead of his lies.
Report Post »Walkabout
Posted on August 23, 2012 at 3:46pmGeorge W Bush (2.35 gpa Yale)
Gore (2.2 gpa Harvard)
n fact, Bush’s were a tad higher. His four-year average was 77; Kerry’s 76. Both were C students. Kerry graduated from Yale in 1966
http://www.usatoday.com/news/opinion/columnist/benedetto/2005-06-10-benedetto_x.htm
Obama GPA ???
Obama << Affirmative Action Candidate
Report Post »nobull14
Posted on August 23, 2012 at 3:58pmI am not talking about Bush or Kerry ?. We know Mitt was very smart !!!!!! what about Oblamo
Report Post »Walkabout
Posted on August 23, 2012 at 6:39pmI was just pointing about by reciting the academic records of the last 3 presidential contenders that the absence of Obama’s record is deafening.
Was not disagreeing with you.
It was more of what doesn’t fit. It doesn‘t fit that we know virtually everyone’s records except Obama’s
Report Post »TJexcite
Posted on August 23, 2012 at 3:11pmJust like if they get his raw tax forms. No one without a tax degree in current corporate tax law will really know what is in them so they can lie about what is in them. Like him paying 13% but miss the part that he gave 15% to the church and got a tax credit for it. Without the tithes he would have paid 20%, but that is missing in all reports.
Report Post »TheMajority
Posted on August 23, 2012 at 2:59pmWhat kind of a company is Bain Capital anyway? Did companies like Bain exist before 1978, just before we started redistributing our production to communist nations? No. We were growing before International redistribution of our production. Because of the redistribution, normally healthy companies found them selves strugeling and going out of business, in many types of Industries.
Bain Capital is not necessarily a bad company, but it is a company playing “clean up crew” for the decline of the USA.
Report Post »barber2
Posted on August 23, 2012 at 2:58pmBut the American public still has not be given access to Soetoro / Obama’s school records ??? ??? The blatant hypocrisy. The LEAKS. The LIES. The Transparent thuggery . Yes, Virginia , there is a Dictator . He rules from the White House. With his band of merry Marxist mobsters.
Report Post »NHwinter
Posted on August 23, 2012 at 2:56pmHow about the cache of Obama’s sealed records – all of them. That would be much more interesting. I don‘t care about Mitt Romney’s taxes, I care about how Gov. Romney will turn this country and our economy around. This crap just doesn’t work anymore.
Report Post »pavnvet
Posted on August 23, 2012 at 3:15pmWait, didn‘t Obama said someone running for president’s life is an open book? Well, that is, except Obama’s……. I would take Romney‘s moral values and charachter traits over Obama’s any day of the week.
Report Post »Mike Benton
Posted on August 23, 2012 at 2:50pmAs they say in computer talk: GIGO
Report Post »hidden_lion
Posted on August 23, 2012 at 3:06pmWhere is Obama’s College records? Why no effort to wikileak those to the world? I would bet money they show he received financial aid as a foreign student.
Report Post »Sirfoldallot
Posted on August 23, 2012 at 3:15pm@ Hidden-Lion – protecting there lie is important 2 them cause it will expose there distrcutive agenda
Report Post »Want our country back
Posted on August 23, 2012 at 3:18pmHow about any of these SEALED records….. any of them
http://theulstermanreport.com/2012/05/20/who-is-barack-obama-image/
Report Post »Snowleopard {gallery of cat folks}
Posted on August 23, 2012 at 2:47pmNote the lefts statements of “We have no way to understand them nor are we qualified to do so; but Romney’s tax-evasion methods are containted within.”
Slanderous and libel as usual with their lies. Somehow I am sensing round three of ‘tax-evasion’ falsehood offensive coming up from the administration.
Report Post »LB
Posted on August 23, 2012 at 2:46pmAdd your comments
Report Post »LB
Posted on August 23, 2012 at 2:46pmWe the People do not care about any of this. We were told not to care about Obamas past so get over it news media and Lib/socialist/commies.
Report Post »Darmok and Jalad at Tanagra
Posted on August 23, 2012 at 2:45pmWe have Mitt’s reciepts from 2002, it shows he bought some D batteries, he also bought a Flashlight, in a seperate month he bought some tampons, prep. H, and Rolaids. We also have it on good knowledge, that he may have bought some strawberries and ice cream.
Now, putting all of that together, we think he may have been canoodling his wife, but in a very kinky way. Now is this the kind of person we want leading our county, someone who is THAT kinky with his own wife? We all know what you do with a flashlight, Rolaids, and Stawberries. What a sicko, and he is showing such disrespect for women.
Report Post »Owt_Raged
Posted on August 23, 2012 at 2:45pmThe company I work for could change the funds they invest my retirement in at any time, without my input. Are people really reaching that far, trying to paint what a private citizen does, with their own money, as evil or wrong?
Report Post »I don’t care where Obama has his retirement invested either. Should we be pulling Harvard’s investment records to see if they created any new funds that retirement money has been invested into?