click link
snip
As we have written repeatedly in the past, Romney left day-to-day operations at Bain Capital in early 1999 to head up the Salt Lake City Organizing Committee, and we have criticized the Obama campaign for blaming Romney for the offshoring of jobs by Bain-controlled companies after that time. But this case is a little different. Although the steel company declared bankruptcy in 2001, the debt was incurred at GS Industries under Romney’s leadership.
Was it the debt load that doomed the company? Some analysts cited by Reuters said it certainly didn’t help. Others blamed the union or competition from Asia. In a 1999 filing with the Securities and Exchange Commission, the company stated, “Distressed economic conditions in other countries, particularly Asia, have resulted in record levels of imported steel products into the domestic market causing dramatic declines in selling prices industry-wide.”
It was a very bad time in general for the steel industry in the United States. A 2003 report from the U.S. International Trade Commission found that between 1999 and 2003, “31 steel companies producing products subject to the safeguard measures [including tariffs on foreign imports] have filed for bankruptcy protection.”
In short, whether Romney or Bain is responsible for the demise of the company is a matter for legitimate debate.
No comments:
Post a Comment