Mitt Romney’s “Cold-Blooded Brothers”: Wall Street Backs One Of Its Own
Bankers are supposed to be the personifications of economic reasoning, but anyone looking at the financial reports of the presidential candidates and super PACs that have come out this week might conclude that there’s more to their political calculations than dollars and cents. Indeed, what these reports fairly shout is that Wall Street’s political picks have been swayed by offended egos and tribalism.
Of course, there’s a straight dollars-and-cents rationale for the bankers’ flight from Barack Obama to Mitt Romney. Obama wants to raise taxes on the rich; Romney wants to lower them. But the sheer extent of Wall Street’s support for Romney suggests that there’s even more in play than that. As Sam Stein and Paul Blumenthal of the Huffington Post have documented, Goldman Sachs employees, who gave Obama more than a million bucks in his first White House run, gave Romney $106,000 in the final quarter of 2011 and Obama just $12,000. Citigroup’s bankers, who gave Obama $730,000 in 2008, gave him just $3,842 in the last three months of 2011, while lavishing $196,000 on Romney. At Blackstone Private Equity, whose chair, Steven Schwarzman, compared the administration’s (tepid) efforts to raise taxes on private-equity firms to Hitler’s invasion of Poland, employees gave Obama just $7,618 while Romney raked in $90,750.
By one measure—the current popularity of Wall Street—Romney picked a poor year to likely become the first presidential nominee to hail from finance. But precisely because Wall Street is (finally! rightly!) under attack as it has not been since the early 1930s, Wall Street is looking for its own political champion as well as economic guardian, and Romney certainly fits the bill. And because Wall Street—both its people and its companies—can donate more than ever before, thanks to Citizens United, Romney also picked a very good year to run: His brethren can give him more than they could in any previous election.
The extent of their Romney support—and, as a corollary, the narrowness of Romney’s funding base—really becomes clear in the financial reports of Romney’s super PAC, set up by his backers to fund all those negative commercials that Romney himself wouldn’t want to endorse. By the end of 2011, it had raised $30.2 million from just 265 donors. Ten million of that came from just ten donors, each contributing a million apiece. Of the eight donors who are identifiable, as a New York Times article by onetime Prospect writing fellow Nick Confessore and Michael Luo documented, six are hedge-fund or private-equity executives. With a base like that, what are the odds that a President Romney is going to scrap the carried interest tax break?
The financial sharpies aren’t just giving to Romney, of course. Texas leveraged-buyout-operator Harold Simmons, who provided most of the funding for the swift-boating of John Kerry in 2004, is back. Last year, he ponied up a cool $7 million for Karl Rove’s American Crossroads super PAC. And casino tycoon Sheldon Adelson and his wife have kept Newt Gingrich’s campaign afloat by showering $10 million on the pro-Newt super PAC.
The big money is mobilizing against Obama, and it would be a mistake to assume that Obama will be able to outspend Romney come next fall. In the final quarter of 2011, Romney and the Republican National Committee raised $93.4 million while Obama and the Democratic National Committee raised $68 million, according to a story in The Wall Street Journal.
For Mitt Romney, it is the best of times; it is the worst of times. The public really dislikes big-time bankers, big-time shadow bankers most of all. Meanwhile, big-time bankers, and big-time shadow bankers in particular, like Mitt Romney, their very own big-time shadow banker, and thanks to Citizens United are able to shovel him more money than ever before. He’s their blood and they are his—cold-blooded brothers to the end.
By: Harold Meyerson, The American Prospect, February 3, 2012
“A Potential Third-Party Run?”: Ron Paul’s Long Game
Ron Paul has coyly batted away questions about a potential third-party run, prompting frequent speculation that he might launch an independent bid. But Paul is almost certainly just trying to increase his leverage. He has been a loyal ally to Mitt Romney, his influential chief ad-maker is married to a Romney consultant, and, as Amy Gardner reports, Paul and Romney have developed a close friendship:
Despite deep differences on a range of issues, Romney and Paul became friends in 2008, the last time both ran for president. So did their wives, Ann Romney and Carol Paul. The former Massachusetts governor compliments the Texas congressman during debates, praising Paul’s religious faith during the last one, in Jacksonville, Fla. Immediately afterward, as is often the case, the Pauls and the Romneys gravitated toward one another to say hello.
Not to mention the fact that a Confederacy-loving, pro–John Birch Society, 1964 Civil Rights Act and Martin Luther King Day–hating paleolibertarian who feels ideologically comfortable with white supremacists (all for entirely non-racial reasons, of course!) is not going to want to help reelect Barack Obama, which a third-party candidacy would all but guarantee.
Paul’s game is to trade his supporters for a seat at the Republican table. Gardner has some good reporting about his efforts to cultivate serious long-term sway within the GOP. His followers are burrowing within party organizations across the country.
This will create an interesting tension within the existing party coalition. There’s little direct disagreement within the Republican coalition about policy — neoconservatives dominate foreign affairs, supply-siders control economic policy, and religious conservatives hold sway over the judiciary and other social policy. The disputes arise in settling priorities. Economic conservatives have increasingly come to dominate the party, and the growing influence of Paul raises the possibility that the party will come to be defined almost entirely in economic terms. That is the explicit goal of figures like powerful senator Jim DeMint, who welcomes Paul’s influence:
The debate in the Republican Party needs to be between libertarians and conservatives, that’s what our party needs to be about. There’s no longer room for moderates and liberals because we don’t have any money to spend, so I don’t want to be debating with anyone who wants to grow government.”
Meanwhile, you have figures like Bill Kristol, who cares mostly about foreign policy, some about social issues, and is pretty much willing to go along with any economic policy that advances those other goals. Kristol sees his allies being relegated to second-class status, and he does not like it one bit:
“A lot of people when they criticize Ron Paul have to preface their criticism by saying, ‘you know, he’s good guy, he brings a lot to the debate,’” Bill Kristol said on C-SPAN. “I actually don’t buy that. I do not think he’s a particular good guy . . . I think it would be better for the Republican party, if he left the Republican party.”
That’s not going to happen, at least not during this election cycle. The question will arise if Romney wins, and Paul has to decide where and how to exert his newfound influence. Romney might offer some nice words about Paul’s goldbuggery now, but there’s no way he would ever give even a smidgen of influence to a crank economic theory if he’s in office and has political skin in the game. He’s also taken a staunchly nationalistic, hawkish line on foreign policy. Would Paul have a fuss over these things, or be content to just push harder for tax and spending cuts?
By: Jonathan Chait, Daily Intel, February 2, 2012
Mitt Romney Supervised Medical Testing Company Guilty Of Massive Medicare Fraud
In 1989, Bain Capital purchased controlling interest in Damon Corp., a medical testing company located in Needham, Massachusetts.
During the time that Bain held its ownership of the company, Mitt Romney personally sat on the Board of Directors. And during that same period, Damon Corp. was busy submitting fraudulent reimbursement claims to Medicare to the tune of millions of dollars charged for unnecessary blood tests.
According to federal government prosecutors, Damon was misleading physicians into ordering unnecessary blood tests, assuring the doctors that the testing would be covered by Medicare.
By the time Damon Corp. pleaded guilty to defrauding the United States Government of $25 million—and paid a total of $119 million in what was, at that time, the largest penalty of its kind in Massachusetts history—Bain was long gone having sold the company in 1993 to Corning, Inc.
Inasmuch as neither Romney nor Bain was ever implicated in the fraud, it would be reasonable to conclude that while the illegal activity was going on under Mr. Romney’s nose, Romney would, himself, bear only some responsibility for perhaps not being as on top of things as one might hope for a company’s director to be.
But, according to Romney, such a conclusion would be wrong.
When Mitt Romney was confronted with the matter during his campaign to become the Governor of Massachusetts, Romney acknowledged that he did have some awareness of the funky things going on at Damon.
According to The Deseret News–
More than a decade later, when Romney was in pursuit of the Massachusetts governorship, his Democratic opponent Shannon O’Brien accused him of lax oversight at Damon and failing to report the fraud.
Romney replied that he had helped uncover the illegal activity at Damon, asking the board’s lawyers to investigate. As a result, he said, the board took “corrective action” before selling the company in 1993 to Corning Inc.
So, then, the future Governor and candidate for his party’s nomination to run for the presidency, did fulfill his obligation as a great American and did report the fraud to the proper authorities, right?
Apparently not.
According to the court records, “…the Damon executives’ scheme continued throughout Bain’s ownership, and prosecutors credited Corning, not Romney, with cleaning up the situation.”
But there is an explanation – it turns out that the Damon experience was a foreshadowing of the Mitt Romney to come as he engaged in one of his now infamous episodes of flip-flopping.
You see, before Romney indicated that he was involved in conducting an investigation while he was on the board of directors, he said that he was completely unaware of any investigation.
Here’s another shocker. While the company eventually went bankrupt, with thousands losing their jobs, Bain Capital walked away with a $12 million profit—a little over $400,000 of that money ending up in Mitt’s pocket.
Expect to hear a lot more about this in the coming days as AFSCME has spent close to one million dollars in advertising buys throughout the state of Florida to highlight this misadventure.
By: Rick Ungar, Contributing Writer, Forbes, (Originally published, January 21, 2012).
“Do You Like Me Now?”: Money Changed Everything For Mitt Romney In Florida Primary
It was money that won the primary for Mitt, but it didn’t make voters like him—and it won’t make the GOP rank and file show up to the polls in November.
Romney and the super PAC supporting him spent more than $15 million on television ads. Team Gingrich spent about $3 million. Both ran almost entirely negative campaigns. One tally estimated that 93 percent of all the ads were negative. The other 7 percent were wasted.
Victory is always sweet, but this one could leave Romney feeling a little sour. Gingrich called Romney’s strategy “carpet-bombing.” Fair enough. But what then do we call Gingrich’s strategy? Kamikaze? Gingrich strapped on his helmet, slugged down some sake, jumped in his Zero, and dive-bombed into the SS Romney. He didn’t sink Romney’s aircraft carrier, but he did some serious damage. Romney is likely to list even farther to starboard, as he is forced to pander even more to the far right.
Gingrich and his allies called Romney “despicable,” “breathlessly dishonest,” and, worst of all, “liberal.” It was not enough to win, or even to make it close, but it was enough to damage Romney in November, should he emerge as the GOP standard bearer. One in four GOP voters in Florida expressed dissatisfaction with the field; a full 53 percent of Gingrich voters said they would not be happy with a Romney-led ticket. To be sure, they’re not going to jump ship and vote for Obama. But they could stay home. They could refuse to give money or make calls or turn out their friends and neighbors. If Romney is the nominee, a lot of Republicans are going to sit on their hands.
As Hillary Clinton and Barack Obama battled across 50 states and seven districts and territories in 2008 there was some bitterness, to be sure. But it was mostly confined to the upper echelons of Hillaryland and Barackistan. At the grassroots you heard time and again, “I’m for Barack, but I’m not against Hillary.” Florida Republicans voted against Newt Gingrich; they did not vote for Mitt Romney.
Money begets money. Romney not only has the greatest personal fortune in the GOP field, he has the most well-funded campaign. And perhaps even more important, the super PAC supporting him dwarfs those of his competitors. An analysis by the Wesleyan Media Project shows outside spending on Campaign 2012 is up 1,600 percent over 2008. Romney’s allies have mastered this new tactic. (Full disclosure: I advise the pro-Obama super PAC, Priorities USA Action.)
The campaign will now stagger through the February doldrums. Romney is very likely to win the Nevada caucuses, which he dominated in 2008. He will almost certainly continue to carpet-bomb Gingrich over the airwaves. But there’s a difference between persuading voters to hate Newt Gingrich—which, frankly, is pretty easy—and getting them to love Mitt Romney, which appears to be well-nigh impossible.
ByL Paul Begala, The Daily Beast, January 31, 2012
“A Monster Of GOP Creation”: Now Newt May Get Even Nastier
Thirty-four years ago, Newt Gingrich summed it up. In a speech to College Republicans—shortly before he would win his first election to Congress—the future speaker had a piece of fundamental advice for the young and impressionable GOPers: “I think one of the great problems we have in the Republican party is that we don’t encourage you to be nasty. We encourage you to be neat, obedient, and loyal, and faithful and all those Boy Scout words.”
Nasty—that was a critical component of Gingrich’s formula for political success. And through the 1980s and 1990s, as Gingrich wielded his nastiness to overturn the Democratic order in Congress and seize the people’s House for the GOP, he was hailed by Republicans. Now, following his 47 to 32 percent loss to Mitt Romney in the Florida presidential primary and Gingrich’s promise—make that, threat—to pursue this nasty nomination contest all the way to the convention in sweltering Tampa in August, the Republican Party has a monster-of-its-own-creation in its china shop. (Imagine a Tasmanian devil in Tiffany & Co.) Despite Romney’s 15-point comeback victory, it seems that the GOP will still be burdened and discombobulated by the Wrath of Gingrich. During his concession speech Tuesday night—which was light on the concession—Gingrich vowed to contest every primary and caucus, as his supporters held up signs that said, “46 STATES TO GO.”
It’s not uncommon for political losers to hang on longer than they should. (See Rick Perry.) So Gingrich’s vow to ignore the play-nice-and-get-out pleas of the Republican establishment and battle all the way to the summer is not surprising. But if he is serious about vengeance, he will have to cling on for longer than a week or two. February’s primaries—Nevada and Maine (February 4); Colorado, Minnesota, and Missouri (February 7); and Arizona and Michigan (February 28)—hold few opportunities for the goblin of Georgia. These states are Romney-friendly and not well-suited for Gingrich’s fire-breathing and not-so-coded rants against food stamps and Saul Alinsky. If he wants Romney’s blood, he will have to stay in the hunt until at least Super Tuesday, where he can try to work his dark magic on his home state of Georgia, Oklahoma, Tennessee, and Idaho. Alabama and Mississippi come a week later.
This means another five or six weeks at least of Gingrich’s not-so-creative destruction, with him hurling his patented nastiness at Romney—and Romney both firing back and, more important, trying to keep up with Gingrich’s extreme anti-Obamaism.
The latter may be more of the problem for Romney than Gingrich’s direct slams on him. Candidates often pound at party comrades during hard-fought nomination contests, and the winner, even though dinged, usually ends up able to compete effectively in the general. (Barack Obama survived Hillary Clinton’s barbs.) But Gingrich is dragging Romney to the right in terms of, yes, nastiness. (During his victory speech in Tampa, Romney declared that Obama represents “the worst of what Europe has become”—of course, without explaining what that meant.)
The GOP primary electorate is in a foul mood. Many of these voters seem to want a candidate who feels their hatred for the president. (See Rick Santorum’s exchange with that lady who maintained Obama is a Muslim.) This whole primary campaign has been a game of revolving Obama-loathers. While Romney has tried to come across as not a hater—he’s disappointed in Obama; he doesn’t despise him—one by one, fire-breathing Obama-bashers who represent the dark and angry mood of their party’s base have risen to be the non-Romney of the GOP race, only to fall down due to their own limitations. And Gingrich is the last of these. (Ron Paul is essentially operating in an alternative universe; Rick Santorum is running on the fumes of Iowa.)
With his mean-spirited and extreme rhetoric, the former House speaker does embody the soul of his party at this point. Though Gingrich is burdened with a ton of baggage that obviously undermines his chances to win a general election—and many Republican voters do care about that—Romney still has to ensure that Gingrich does not run away with the hearts of GOP voters. Consequently, he has to keep the meanness/Obama-hatred gap that exists between him and the former Freddie Mac historian/consultant/strategic adviser from becoming too wide. Yet doing so makes Romney less acceptable to those fickle independent voters who yearn for candidates who can solve problems in Washington without partisan fighting. If Romney has to engage in such Newt-neutralization for weeks, if not months, he will further define himself in a manner likely to alienate independents and middle-of-the-road voters.
There’s an old-saying: Don’t get into a fight with a skunk; you’ll only come out smelling. Romney cannot remain in combat with Gingrich—even if he continues to win delegates—without being tainted by the stench of this skirmish.
Gingrich’s nastiness—now aimed at Romney—is an accurate reflection of the Republican Party. In recent years, Gingrich-style extremism has become its norm. Sarah Palin (who has been egging on Gingrich) claimed during the 2008 race that Obama had been “palling around” with terrorists. When the Democrats were poised to pass a health care reform bill in the House, GOP leaders of that body sponsored a Tea Party rally, where demonstrators chanted “Nazis, Nazis” in reference to the Dems. Donald Trump made GOP voters swoon with his birther talk. Gingrich himself claimed that Obama could only be understood as a fellow who holds a Kenyan, anti-colonialist view of the West. Death panels, a government takeover of the health care system, socialism—it’s been nasty for years in GOPland. Romney’s challenge is to win over these people, without fully endorsing the malice. (Thus, Obama=Europe.)
Now on the receiving end of vicious blasts, Gingrich has taken to whining that he’s the victim of lies and extreme attacks. After all his years of practicing gangster politics, he hardly warrants sympathy. (And many of Romney’s assaults on him have been accurate.) But he also has been trying mightily in recent days to depict himself as the personification of the conservative movement, arguing that an attack on him (by Romney, the Republican establishment, or the media) is an attack on the tea party. (This is a right-wing version of identity politics.) And he’s been saying that the conservative movement simply won’t stand for a “Massachusetts moderate”—or a “liberal” who supports abortion rights and gun control, as he dubbed Romney this week—as the Republican Party nominee.
It’s his last play—to try to ignite a civil war within the GOP. At the moment, with the smell of his Florida defeat still in the air, he seems rather serious about this endeavor. With his own record of flip-flops and his less-than-inspiring personal history, he’s certainly not the perfect leader for such a crusade. But if the dissatisfaction on the right is deep enough, perhaps he can be a sufficient vehicle.
Notwithstanding the loss in Florida—and with only 5 percent of the GOP delegates selected—Gingrich is still positioned to inconvenience, if not undermine, Romney. And he has choices. Will he try to rally conservative foot soldiers and lead a Pickett’s Charge against the front-runner, hoping to do better than Lt. General James Longstreet? Or will he go the way of a suicide bomber and become the doomsday device of the GOP?
With his Florida success, Romney is back on that path to the nomination. But Gingrich is a problem for the front-runner and the entire GOP establishment—and that’s because he’s following the scorched-earth playbook that he long ago developed for the party and that the party has embraced for years.
By: Davis Corn, Washington Bureau Chief, Mother Jones, January 31, 2012
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