Mitt Romney Defends Bain Capital Tenure, Tries Out 'Crony Capitalism' Charge (VIDEO)

Mitt Romney gave a sneak preview of a defense he plans to use against President Obama when it comes to the former governor's tenure at Bain Capital, a "vulture capitalist" firm.

Pressed by Newt Gingrich on his time as a private equity executive, Romney turned the question to Obama. "He's been practicing crony capitalism," Romney said of the president. "You've got to stop the spread of crony capitalism."

Crony capitalism isn't a new charge to throw around, though using it to neutralize Bain is.

Romney's list of particulars included the auto bailout, Solyndra, appointments to the National Labor Relations Board and the Keystone XL pipeline. Only Solyndra could plausibly be considered crony capitalism, if the charge that the administration sent a $5 million loan guarantee to the solar panel company to take care of campaign contributors is accurate.

The auto bailout and the NLRB examples, even in Romney's own formulation, are at worst favors done for Big Labor, not crony capitalists. The pipeline, meanwhile, is backed by large elements of labor, while opposed by environmentalists, so it's difficult to include it under a crony capitalism umbrella.

Debates are a good place to work out messaging, and Romney appears to be trying out crony capitalism.

Comments

[RogueOperator1]

10:57 AM on 02/01/2012

What's a 'vulture capitalist' firm? Does the 'prey' have any say in dealing with such an investment firm? If the business in question is bad and it fails, why all the hand-wringing?

[Mas]

04:06 PM on 01/20/2012

Word correction: "because under auto makers" please read that as "because other auto makers"

[Mas]

04:00 PM on 01/20/2012

Part II:To capitalist and Republican/Conservatives this was not acceptable, because someone had to be blame. The board members like many of the capitalist and Republican/Conservatives refuse to accept President Obama as the POTUS, but they loved their company more. Since their friends could not come up with the money, they were forced to accept President Obama and the life line he offered. Instead of admitting their failed management policies and failed investment strategies, they went to the boogie man well and offered the culprits were the union. It would be an easy sell. Republican/Conservative believers would be on the front line yelling how the union is destroying America, and despite others asking them to think about the whole picture on how both companies responded, they still yell union. Capitalism has it goods points, but our nation’s drafters of the constitution openly stated we must have checks and balances, because they knew well what man will do to man. Republicans/Conservatives and their willing partners & supporters have been working hard and cleverly to dismantle the constitution, especially the parts about checks and balance.

[Mas]

03:58 PM on 01/20/2012

Blogger WC Phields claims the problem with GM was the union. His latest entry to me indicated because of the union GM could not compete in the global market because under auto makers offered lower prices. GM is number 1 in the global market and the price of their cars has not dropped in order to compete.

Part I: At the Ford Motor company the AUW (Union) works there the same as GM. Ford pays retirees and legacy as well. Ford did not get into financial trouble because their board members and upper management were quick to get rid of some of their upper management and including the CEO, the Ford heir. The great grandson of Henry Ford assumed the CEO position and brought in his team, including commercials with him and “Ask the professor.” The board and upper management took swift action to remove all of them and redirected the company to what it does best, build trucks, and not invest in other ventures.

GM CEO and staff on the other hand invested in other car division, moved away from what they did best. Their board and upper management failed to do their job and correct the ship. As part of the loan the CEO and others had to accept that their decision was bad, they had to dissolve those partnerships that were dragging the company down, and more importantly they had to step down and let the company do what it does best.

[kathy smelser]

06:23 AM on 01/20/2012

OH NO ...just in MITT ( Mr.1% ) and Sarah P.( ) had to leave blank have been sharing the same crystal ball and telling fortunes without a permit ....maybe it is just a little CRONY CAPITALISM

[TMF42]

03:45 AM on 01/20/2012

Attacking Romney on his success is wrong - what needs to be questioned is his agenda for the economy.
He will create jobs alright, but at the same time - increase dependency on fossil fuels, decrease regulations to maintain a sustainable environment, he will deregulate the financial market which will see a lot of winners and a lot of victims. And by opposing unions he will ensure that workers have no coordinated representation in the market.
All this you can read in his program available on mittromney.com

You will find a booming economy, but it will cost us an advantage and in some areas put us back to the 90's. So personally I'd rather move forward slowly, than rushing back to the past.

[kathy smelser]

06:29 AM on 01/20/2012

Mr. 1% has no problem ...if he gets into the White House he would skim money from the budget and instead of just having some offshore accounts he could have off off offshore accounts .....hiding the money for the BIG take over between him and his church .....everyone should be afraid

[CTtransplant]

03:20 AM on 01/20/2012

Romney strikes me like a 'pin-up'...all flash and no substance. Strikes me as he thinks he's 'all that'...when everyone else thinks he's not.

[CTtransplant]

03:18 AM on 01/20/2012

Romney is the 'crony'...

[Thanks4Watching]

02:33 AM on 01/20/2012

Defends his actions as Bain's CEO while accusing Obama of crony capitalism in the same breath.

You can't make this stuff up.

[Vapula]

01:35 AM on 01/20/2012

Romney is a crook just like his Wall Street mates. He has a silky tongue but venom just under the surface. The Republican party seems to be intent on committing suicide. At present they are doing pretty well.

[JHA in Texas]

01:27 AM on 01/20/2012

Willard R-money breaks out new message of "Crony Capitalism", really---is that the best you got!
That is so damn funny coming from FINANCIAL ENGINEER R-money, stop, with the "Crony Capitalism" you are going to make about 250 Million people pee in their pants!!!

[Ariel Finn]

01:26 AM on 01/20/2012

It is disgusting how Obama is no different than the Republicans when it comes to kickbacks to contributors and Wall Street. We need to throw all the bums out off Washington from Obama to Congress. They all stink!

[lvdragonlady]

02:34 AM on 01/20/2012

Go back to your corner it misses you and your timeout is not over. Those like you continue to hide your heads in the sands of the GOP so you are no better then they are.

[demofem]

12:20 AM on 01/20/2012

Hmmm...the President was practicing crony capitalism when he saved the American auto industry, a defining sector of the US economy? Well, good luck with that argument, Mitt. And I do hope you can explain the purpose of a venture capital group like Bain when even with government funds, it was able to run businesses into the ground and fire everyone but still walk away with millions for you and your fellow investors. I'm getting the popcorn and pullin' up a chair.

[Mike Jenson]

12:38 AM on 01/20/2012

Wow. Crony capitalism is simply about success in business being tied to close relationships with Washington, as opposed to intelligent management and hard work. The auto bailout fits that description perfectly. Many industries have been hit hard by the recession, and the government has a track record of picking which ones to help and which ones to let die. That is the very definition of "crony capitalism." And to call one automotive company a "defining sector of the US economy" is not only entirely subjective, but also potentially misleading (as there are other American automotive companies) and insulting to our country. Mismanagement and a lack of competitiveness do not define the American economy, and I sure hope that extreme government intervention in the private sector does not start to do so either.

[Jeff Bunting]

12:51 AM on 01/20/2012

sorry but ultimately the result of any capitalistic system is Crony Capitalism.

[LibertyDeathWatch]

02:11 AM on 01/20/2012

He didn't SAVE the American auto industry. If a company cannot stand on its own merits, on the quality of its products and the way it manages a company it should go out of business.

[Justin Seybert]

12:05 AM on 01/20/2012

"Hey kettle, you're black!"

"Shut up, pot!"

[Shrank]

11:57 PM on 01/19/2012

Romney won't release his tax returns until he finishes releasing all those greenhouse gases. It's gonna be a warm winter, folks.

[Mike Jenson]

12:40 AM on 01/20/2012

Quick question: why does it matter whether Romney releases his tax returns?

[SonOfUgh]

03:10 AM on 01/20/2012

What is he hiding?

Ooooh, interesting how the same dialogue that the birfers used comes around to bite them in the