tv News and Public Affairs CSPAN May 27, 2012 9:35pm-10:00pm EDT
speeches by first lady michelle obama and "q&a" with clint hill. has beenney's work discussed in this year's presidential campaign. on friday we spoke with michael ok a lookat to v campaign video. -- at campaign video. >> michael cranish is the co author of "the real from a." -- romney. take us back to 1994. the senate race in which bain capital surface.
>> in 1940 -- 1994, most people did not know much about mitt romney. he had worked at bain capital. this was something of his credentials. he was not prepared for attack on his record. they were not prepared for attacks against bain. they have responded quickly. >> what is bain capital today and what was it in 1994? >> he founded it with the help of his mentor. it invests in and advises companies and takes a big stake in companies and they do
stirrups. most of the money was made in leveraged buyouts. it went into existing companies and pay themselves. management fees and tried to either build a company or spend things off and they were successful for the investors in a fund. some did well and some not so well. for the investors, they made astonishing returns. it was a rebound of 88% a year over 15 years for the investor's return. >> you brought up the issue of the ads. here are two of them and the response from rec -- mitt romney. >> he did not tell you on the day he took over he had his predecessor fire hundreds of employees. the way the company was rescued was with a bailout of $10
million. they failed to repay and the rest of us had to absorb the loss. he and others made $4 million in this bill. maybe he is against government when it helps working men and women. >> romney said he thought no one else would do it. >> they had to [unintelligible] >> i would like him to shelle ver these 10,000 jobs where he created are. >> these distorted, negative attacks on me are wrong. more than a field, the cynical, old-style politics has been in washington too long. the real people i talked to are
more interested in getting serious about crime, reforming welfare, and creating real jobs. they want to hear real differences on issues that matter. you talk about their plans and i will talk about mine. >> the change we need, ms. cromie. >> -- mitt romney. >> this issue and this race. what comes to mind? >> this was his former company. he did go into problems and turn it around. it is a complex story we tell in the book. what is interesting about the third ad is that it does not respond to the charges. he wanted to change the subject. he lost the race. what they're trying to do is respond directly and talk about jobs. he has learned some lessons. in one of the debates, this is
from october 25, 1994. >> you have spent much of your sampaign attacking mr. romney' business record. how would you have handled that situation differently if you were in his shoes? >> first of all, mr. romney has characterized one of his qualifications for the united states senate is his business background. it is legitimate to look for what kind of jobs he has created. the kind of jobs he has created are part-time jobs and minimum- wage jobs that do not have any health insurance. that is not the kind of job i want to create. there are different ways for venture-capitalists to deal with the situation like indiana.
either you close the plant down, throw the people out of work, only hire back the younger workers. or you can retrain the workers, further education and training, invest in those companies and create full-time jobs at good pay with good benefits. that is the kind of record that would have impressed me in terms of creating jobs. what is wrong with mr. romney's companies providing the same thing? [applause] >> i have a lot of things to answer on that. in my view, the attack on part- time workers not having health insurance is the height of hypocrisy. senator kennedy and his family have a multiple real-estate empire across this country. that merchandise market has a free cash flow of $20 million a year. i am sure you know that your workers that are part-time to do not have health insurance,
don't you? [applause] >> mr. romney, there is a major difference. you do not even afford access to your part-time workers. we at least provide the access and many of those part-time workers take it and it is a shared responsibility. >> i do not know what you are talking about. you do not provide health insurance for your part-time people. >> gentlemen, gentlemen. you are going to have an opportunity to get back to this question. >> my impression is that you have followed a campaign as soon as the primary was over trying to divert the voters' attention is on issues at hand. instead, making personal attacks on me. you said that my firm has 40
people and only one is a woman. you are wrong, 12 are women. you said we give no benefits to americans. we have 40,000 employees who give health-care benefits. only part-time do not have health care benefits. that happens to be the same as your firm. we are strikers in a company that was not even invested in. it happened six months after i left. you parade that around like it is my problem. i am in favor of the minimum wage. you have yet to produce any document that says i did not support the minimum wage. when will this end? [applause] >> let me stop this right now. i think it is fair to ask each one of you to take your first
minutes for both a charge and a question. and then we will open it up. is that fair? i am going to have the timer count us down. that is your question. >> that is fine. >> mr. romney would have asked me what i was going to do for working families in massachusetts, how we're going to get our economy on the road, talking about the real measures that are going to affect children, working families, senior citizens. mr. romney, i will provide after this debate all the documentation that you asked for. i hope you'll tell me where you will provide health insurance for your companies overseas. he is a distinguished former member of the united states senate. when he made the characterization, and he called
it reprehensible and challenged you to withdraw it, let's put the ads aside and talk about health care. let's talk about education. let's talk about infrastructure. let's talk about our vision for massachusetts. that is what the people of massachusetts want to talk about. >> i want to know where you spend millions of dollars talking about staples and not having health care benefits when your companies do not have health care benefits. when you spend millions of dollars, that if you are so innocent and talking about the issues because that is all i have talked about up until one week ago.
>> senator kennedy? >> i will provide those in detail. i will provide them about the minimum wage, giving the document where you said you were against the increase in the minimum wage, you had a different opinion when you were talking on national television. i do not know why you would meet with the strikers. i am bothered about the pain of the people in massachusetts. you may be frustrated about it, but your pain and my pain pales to what is happening in this city. people cannot get jobs. you take a great deal of
satisfaction about exchanging papers about this. about your advertisements, about the kennedy interest in the washington investment, my nephew and i have a blind trust. we have no control over those trusts. the kennedys are not in public service to make money. we have paid too high a price in our commitment to the public. >> from 1994, michael kranish, the parallels to what the argument was against mitt romney. >> it is fascinating to watch the tape from 1994. there are a lot of similarities in the way that he is being attacked. he said he had nothing to do with the company -- i am not sure what company he was
talking about there. he was receiving financial benefits from the company. one of those things that will come up again. there is a question about jobs that were created and jobs lost. when he ran in 1994, he said that he helped create 10,000 jobs. now he is saying that he helped create 100,000 jobs. we looked at about 100 deals that he did over a 15-year period, you cannot say how many jobs were created or lost. 100,000 jobs figure, the campaign has said 89,000 of those jobs came from staples. most of those were created after bain cashed out. it is one of the smallest deals that they did when romney led the company. the founder of staples -- other people would say, wait a second, they cashed out and most of those came later. he is taking credit for jobs that were created later.
in some cases, he has said that you should not blame me for jobs that were lost after i left. there is a balancing there. the obama campaign has tried to point out what they perceive to be contradictions. the basic issue is still the same. in 1994, mitt romney was not prepared to answer these questions. he did not answer a lot of them directly in a timely way. now he is trying to do that. the other thing i want to mention is that mitt romney was hit by kennedy a lot about health care. in 2002, he pushed through a health care plan and standing beside him was ted kennedy. it is really interesting to see kennedy attacking him over this.
we know that years later what happened and how it turned out and kennedy was very supportive about what romney did. >> in the same venue where the debate took place. let me show you what governor romney said to "time" magazine. mitt romney in mid-october of 1994 had this to say about his experience in the private sector. >> one of the ads, it has been interesting to watch the ads my opponent has put out. i do not know how to respond to them all. it suggests that my firm discriminates against women in positions of management. nothing could be further from
the truth. of the 40 people in our firm, about 10 or so are women. our chief financial officer is a woman. we have women in key positions in the company. the company i ran before that, when i left, i was instrumental in having a woman appointed as the new chairman of the board. when i was chief executive, women were among the senior officers. in my venture capital business as well, you know what the venture capitalist do. they're not many who have backed a woman as a chief executive officer. judy george had never run a company before. she came to us with a new idea and we provided the capital for
that. she is the chief executive of the company and our relationship has been a terrific one. i had some people come to me for child care centers in the workplace. the idea was a terrific one. two young men had the idea, but i was not convinced they were the right people to be the chief executives. they agreed with me. i found a couple, a husband and wife, who had just come back from the sudan. they had come back to the united states and i ask them to become co-chief executive officers. i backed other women as chief executive officers. one of the concerns i have had is that there is a glass ceiling. we talk about that a lot. i believe is there. what of the challenges is knowing where it is in each
company. you cannot really tell. one proposal i made is that in all public companies, when they file their 10k, they include a breakdown of women and minorities by in come inside the company. you can look at a company and say, are there any women in this pay group? that would allow us to see where glass ceiling is. i donot want the government to regulate quotas or whatever. i find that in corporate america, when executives look at the information, they get the message all by themselves. you will see american change as people see where the glass ceiling exists. i would be happy to have my own companies conform to that same standard. >> from october 14, 1994. mitt romney losing the senate race to senator ted kennedy. was there a consistency or a similarity to what he was saying back then about these
issues to what he is saying today? are there lessons for the campaign that they take away from the 94 loss? >> people do not know what bain capital is. you can listen to ads on both sides today. romney says things are great. obama says things were not so great. he said, i did not actually run our investment. that was left to management. that was from mitt romney himself and that gives you a better idea. he had an umbrella investments
and they took in money that had $1 million or more to invest. that fund invested in various companies -- sometimes, jobs were created. sometimes, they were lost. he did not go in there in most of these cases and run a company. he had an investment fund and his colleagues and the board of directors, they would direct strategy. it was not like his father, who ran american motors and turned it around. it is a different type of business. it is a leveraged buyout business where they are using debt to make profits for their investors. that is the detail that tells you exactly what he did. it is hard to explain in the campaign.
it has been the tricky pivot for the obama campaign. they do not want to attack private equity. did you want to attack some specific deals that he did. it is complicated. it is not the typical thing of going in and starting a business and then leaving. think of it as a super mutual- fund. they took money from investors and their responsibility was to improve the return. some of his partners said they did not discuss, would this deal create jobs? they did not see it in a negative way. they did not see themselves in a job creation type of business. they were in a business that was intended to get as high of a return as possible for their
investors. >> let me show our audience how this issue is playing out in the 2012 campaign. one of the most recent ads from the obama campaign and the response. >> i was a steelworker for 30 years. we had a reputation for quality products. it was something that was american made. we were not rich, but i was able to put my daughter through college. >> it is important. >> let's start but the sale of the plant. i know how business works. >> bain capital was the majority owner. they were responsible. the influence he exercised over these companies. >> they made as much money off of it as they could. they closed it down and filed for bankruptcy. >> they came in and sucked the lifeout of us.
>> it breaks my heart. >> i was devastated. it makes me angry. those guys were all rich. they all had more money than they will ever spend. they did not have money to take care of the people. >> bain capital walked away with a lot of money. >> he has destroyed thousands of people's careers. >> he is running for president and if he is going to run the country the way he ran our business, i do not want him there. he would be so out of touch with the average person in this country.
how could he care for the average working person if he feels that way? >> i am barack obama, and i approve this message. >> have you had enough with president obama's attacks of free enterprise? cory booker of new jersey. former congressman, democrat from tennessee. >> private equity is a good thing. >> i do not think that there is anything bain capital did that they should be embarrassed about. >> even obama's own supporters have had enough. >> enough is enough. >> michael kranish, as y