Skip to main content

The Sensata story has taken a life of it's own. It is all over twitter and slowly but surely working it's way into the mainstream media. Our friends on the right have caught wind of this and have not hesitated to go into spin mode/damage control. They are trying to distance Romney from this whole situation, because we all know Romney would never do anything like this despite getting filthy rich doing it. And like anything else that has ever gone wrong ever in the history of time, they are even trying to blame it on Obama. Of course, right?

Below are facts about the Sensata scandal that you need to know.

1. Mitt Romney Still Owns $8 Million in Bain Funds That Holds 51% of Sansata Shares.

Mr. Romney had nothing to do with that decision. It would be troubling to learn that the candidate still had such power over the company and was willing to exercise it. The workers, obviously desperate, are hoping that the campaign’s need to avoid bad publicity might help them.

Nonetheless, Mr. Romney remains deeply tied to business decisions like this. As Bain’s founder, he established its business model, which is to wring the maximum efficiency from a company for the benefit of Bain’s investors, even if that means closing plants, shipping jobs to China, and laying off American workers. That’s how private equity often works, and Bain has done it many times before, sometimes to the benefit of a company’s workers, and sometimes to their detriment.

When Bain first led a buyout of Sensata, in fact, it laid off hundreds of American workers and sent their jobs offshore. As the Times reported, the Labor Department spent $780,000 retraining some of the laid-off employees.

In addition, Mr. Romney’s generous retirement agreement ensures that he continues to profit from the deals and decisions that Bain makes. He owns about $8 million worth of Bain funds that hold 51 percent of Sensata’s shares. If Sensata saves money by closing the Freeport plant, that could add money to Mr. Romney’s trust accounts, now or after the election.

But Mitt has nothing to do with it, right?

2. Mitt Romney Will Profit from Sensata Being Outsourced.

While the workers and the town may suffer, Romney himself has done well as a result of Bain's work with the company. According to his recently released 2011 tax returns, Romney transferred $701,703 worth of Sensata stock to the Tyler Charitable Foundation, a 501(c)3 tax-exempt nonprofit controlled by Romney. The gift is listed on page 323 of the pdf, on form 8283 (below).

Moving the stock to his nonprofit brings Romney twin benefits. First, he gets to deduct the full value of the stock. At a 35 percent tax rate, that's nearly a $250,000 benefit. At 15 percent, it's just over $100,000.

Second, Romney is able to avoid paying capital gains taxes on the stock price increase. Romney's returns list no cost for the stock, and indicate he obtained them as part of a partnership interest in Bain. Avoiding capital gains taxes on the full increase would save an additional $100,000. In 2010, Romney gifted $170,000 worth of Sensata stock to his charity, saving $25,000 in capital gains taxes that year.

3. Mitt Romney Does NOT Have a Blind Trust Agreement with Bain Capital.

4. Mitt Romney has Ignored Pleas from the Workers.

The workers have pleaded with GOP presidential candidate Mitt Romney, the founder of Bain Capital, to exert his considerable influence to save their jobs. Romney still makes millions each year in income from Bain. So far, he has declined to weigh in, and the factory is scheduled to close by the end of the year.

5. Bain Capital Has Donated to Obama, but Have Donated Far More to Romney.

The right is using the fact that Bain Capital has donated to Obama as a way to somehow blame Obama instead of Romney. First off, let's say Bain gave $1 Billion to Obama. A donation is not an investment. There is a big difference between a company giving someone money and someone owning a big chunk of the company. Many businesses don't donate like you and I. We donate to the candidates we like, most businesses will donate to both candidates to hedge their bets. No matter who wins, they can ask for favors and wave the donation in your face.

Bain Capital has donated $43,428 to Obama.

They've donated $270,970 to Romney.

Who do you think they're rooting for?

Bain has also donated $621,900 to the Republican National Committee.

Originally posted to TheNewDeal00 on Sun Oct 14, 2012 at 12:47 AM PDT.

Also republished by The Bain Files.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Thor Heyerdahl, Louise, fly, Renee, Thumb, MichaelPH, Ptolemy, Mimikatz, Sylv, CJB, Chi, MadRuth, grollen, teacherken, DMo, Liberal Thinking, tiggers thotful spot, nicolemm, Dave the Wave, newjeffct, bosdcla14, TechBob, karlpk, tommurphy, jazzizbest, donna in evanston, kpardue, SanJoseLady, Jim in Chicago, hyperstation, waytac, jdld, celdd, eeff, Mnemosyne, frsbdg, TX Unmuzzled, Pompatus, frisco, FyodorFish, sidhra, cvannatta, bookbear, dweb8231, madhaus, Morgana, eyeswideopen, cfm, tyler93023, missLotus, 88kathy, cskendrick, parker parrot, BlackSheep1, wonkydonkey, whenwego, Loquatrix, CoolOnion, KMc, PBnJ, gayntom, roses, CanisMaximus, ivote2004, retLT, Boston to Salem, dchill, mollyd, internationaljock, fumie, revsue, Quege, Lilyvt, hopesprings, Dube, psnyder, Nag, NYC Sophia, American Zapatista, CitizenOfEarth, cosette, smarty jones, laughingriver, wdrath, BMarshall, niteskolar, Jujuree, Steven Payne, Bluehawk, Sychotic1, defluxion10, raster44, papercut, rlharry, RebeccaG, lcrp, riverlover, bwintx, zerelda, ybruti, Sembtex, randallt, lonespark, tomjones, jcrit, TexasLefty, Emmy, valadon, Jen Hayden, vivadissent, boran2, Sybil Liberty, Armand451, TexMex, sawgrass727, Gowrie Gal, davidkc, rapala, Skennet Boch, marina, 3goldens, Tinfoil Hat, DianeNYS, caul, subtropolis, SherwoodB, stlawrence, KnotIookin, JohnB47, kitchen sink think tank, dewtx, ChemBob, stagemom, Brooke In Seattle, EJP in Maine, Gary Norton, reflectionsv37, fixxit, eru, Beetwasher, SaraBeth, ladybug53, elbamash, blue jersey mom, Ozymandius, paxpdx, SBandini, spunhard, Savvy813, WisePiper, FindingMyVoice, LivesInAShoe, bookwoman, DaveVH, peacestpete, Ekaterin, murasaki, Box of Rain, Alan Arizona, zozie, kathny, Oye Sancho, fhcec, Jim R, Redneck Aeschylus, ThatSinger, reddbierd, stef, Captain Sham, Orinoco, myboo, keeplaughing, Clytemnestra, profundo, seefleur, mooshter, kestrel9000, ruleoflaw, Loonesta, The Wizard, deha, Naniboujou, arlene, fou, blueoasis, SherriG, TalkieToaster, StrayCat, 4Freedom, Rosaura, Crashing Vor, Native Light, real world chick, Terminus, JVolvo, CTLiberal, Zwoof, ER Doc, oxley, middleagedhousewife, SingerInTheChoir, BlueMississippi, Clive all hat no horse Rodeo, blueoregon, kurt, Koleppski, SD Goat, Statusquomustgo, AntKat, Babylon, tegrat, anna shane, Msanger, marykk, fabucat, Cronesense, Cat Whisperer, Loudoun County Dem, camlbacker, weneedahero, ninkasi23, ColoTim, leftyguitarist, gloriana, yoduuuh do or do not, Wino, FishOutofWater, daveygodigaditch, terabytes, joedemocrat, newpioneer, RosyFinch, buckshot face, cyncynical, suzi106, jnhobbs, jhop7, gchaucer2, carpunder, Librarianmom, pioneer111, Wreck Smurfy, uciguy30, GeorgeXVIII, leonard145b, madgranny, M Sullivan, Da Rock, vet, Empower Ink, gizmo59, JDWolverton, 123man, rogerdaddy, Argyrios, ChocolateChris, HappyinNM, MikePhoenix, Cordwainer, mamamedusa, Sixty Something, Youffraita, Foundmyvoice, Tchrldy, Involuntary Exile, elwior, skohayes, Akonitum, DCBlue, VL Baker, mikeconwell, Lujane, tofumagoo, royce, pamelabrown, boatjones, evora, Missys Brother, Jeff Y, catly, alnep, glendaw271, luckylizard, Guadalupe59, tristan57, ekyprogressive, Danise94, sydneyluv, watercarrier4diogenes, fayea, LaFeminista, 207wickedgood, MrsTarquinBiscuitbarrel, maggiejean, Bule Betawi, DontTaseMeBro, Kansas Born, Glacial Erratic, Dirtandiron, ARS, litoralis, greengemini, hummingbird4015, banjolele, CanyonWren, jtraynor, Nebraskablue, notrouble, Ohiodem1, War on Error, jck, BlueInRedCincy, pvmuse, CamillesDad1, ToKnowWhy, elziax, platypus60, MKSinSA, politicalceci, jazzence, Denise Oliver Velez, Shelley99, stevenwag, sfarkash, vadasz, 57andFemale, Little Flower, haremoor, Tortmaster, reesespcs, hopeward bound, mahakali overdrive, MizKit, Livvy5, futureliveshere, America Jones, Larsstephens, Words In Action, tash123, ruscle, BlueOak, MT in Austin, Amber6541, smileycreek, SquirmyRooter, brentbent, coppercelt, awcomeon, marabout40, NJpeach, eXtina, pdx kirk, PZinOR, SmartRat, estreya, Tea and Strumpets, Susan Grigsby, leftywright, seishin, Interceptor7, klompendanser, taiping1, Crabby Abbey, ATFILLINOIS, renzo capetti, ssentamu, I Lurked For Years, pixxer, ItsSimpleSimon, xhale, anonevent, j b norton, cai, sharonsz, itswhatson, rja, Betty Pinson, Maverick80229, ericlewis0, Floande, DaveinBremerton, Loose Fur, DirkFunk, science nerd, Oh Mary Oh, therehastobeaway, cany, Wisdumb, hishighness, theKgirls, Pakalolo, Maximilien Robespierre, Colorado is the Shiznit, ozsea1, Oldowan, StateofEuphoria, spooks51, ban nock, nervousnellie, slowbutsure, vahana, freesia, Possiamo, southernmapper, FarWestGirl, kiwiheart, near mrs, kevin k, FightingRegistrar, CoExistNow, lupinella, mrsgoo, Haf2Read, marleycat, PorridgeGun, zukesgirl64, Cinnamon, sethtriggs, Icarus Diving, badscience, IllanoyGal, thomask, ShowMeMoBlue, muddy boots, Yogurt721, MRA NY, worldlotus, rexymeteorite, enhydra lutris, chira2, Caddis Fly, Friendlystranger, Hayate Yagami, Curiosity, jolux, SteelerGrrl, Catlady62, rscopes, Sunspots, stlsophos, NedSparks, joanbrooker, googie, Mentatmark, Rashaverak, Auriandra, allergywoman, No one gets out alive, johnnr2, mikeVA, BlueDragon, bearette, AnnetteK, Only Needs a Beat, jacey, Pinto Pony, daysey, stormicats, Cordyc, KiB, Catskill Julie, Siri, Jakkalbessie, ahumbleopinion, SilverWillow, joanil, a2nite, AreDeutz, rukidingme, Trotskyrepublican, JGibson, ANY THING TOO ADD, congenitalefty, reginahny, TBug, radical simplicity, Nztorg, Laiane, MartyM, BRog, Buckeye54, Bedivere, sexgenderbody, james321, avsp, FrY10cK, marty marty, George3, hungeski, Marjmar, Purplehead, live1, Hammerhand, Candide08, Blue Bell Bookworm, nomandates, DamselleFly, alpaca farmer, countwebb, Eric Twocents, JayRaye, TeamSarah4Choice, poopdogcomedy, SandersRavilyn, DownstateDemocrat, goodpractice, mtnlvr1946, IamNotaKochsucker, Alhambra, echedgar, D minor, Homer177, Constantly Amazed, Icicle68, Smoh, Laura Wnderer, ET3117, Blazehawkins, Kay Observer2, Catkin, svip, Michael Chadwick, northcountry21st, pianogramma, Wendi Kent, thatpj

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site