Appearing in tomorrow's edition of the Boston Pheonix Romney's Shadow Years
David S. Bernstein writes:
I also add one that I believe I am first to write about: Romney's and Bain's investment, via Golden Gate Capital, in a company called Endurance Specialty. That company was formed immediately after the 9/11 attacks to take advantage of the casualty insurance market created by that tragedy -- what some would call profiteering, and others would call meeting a need. Endurance Specialty was established in Bermuda to avoid US taxes and regulations..
The full article itself is here.
Nobody claims that Romney was running Bain Capital's day-to-day business from Utah; nobody can dispute that he was legally the head of the company at the time, and at the very least signed occasional documents in that role.
The devil is in the details. Did Romney truly have no input during that time, as he and the company insist? Or, did he keep a hand in the business, as many suspect?
snip
As Endurance Specialty itself proclaimed in its 2002 prospectus, there was an "attractive opportunity" because "many global property and casualty insurers and reinsurers are currently experiencing significantly reduced capital" due to several factors, including "the World Trade Center tragedy."
In other words, existing insurance companies had their money tied up waiting to sort out 9/11 claims — just as fear-driven customers were desperate to add more coverage, and willing to pay skyrocketing premiums. Companies like Endurance Specialty were able to charge 300 to 400 percent more than pre-9/11 rates, according to reports at the time.
That business can be viewed either as profiteering, or meeting a need.
Either way, Endurance Specialty did do one thing Romney is sensitive about: the company avoided paying US income taxes by basing its operations in Bermuda. It set up shop there, even though almost all of its funding and management were American, and two-thirds of its sales were in the US..
It's a very long article and tho I've only included a small portion, I'm pretty sure I've exceeded fair use and will gladly pare it back, but would appreciate it if anyonw would like to suggest what best to trim.
At any rate, we keep finding out more and more about what we already thought we knew. It's raining shoes. And Mitt Romney will never occupy the Oval Office.