bain, but has left the print romneyville the direct investment in sensata the one fund titled bain capitald lp dated december 31, 2009, meaning he likely has benefited from the ownership by bain and could benefit from the plant's closure and the outsourcing of the jobs to china. according to his 2011 personal disclosure financial disclosure, romney still holds the bain capital fund that contains the sensata investment. >> we look at it that bain capital board has made a decision. the sensata ceo has made his decision. so we believe that the only person in the world who can stop these jobs from being moved is mitt romney, because of his relationship with the bain board, his financial investment in bain capital. we also believe that if he would come and talk to us and see the impact this kind of outsourcing has on not only the people who work there, but as the mayor has addressed, the community and surrounding area, that he would see this is absolutely the wrong thing to do because of the devastation it brings. so far, we continue to receive no response from them. they continue to say they a

so you sort of can't lose. >> bain capital initially invests in startup companies. years, bain strikes it big. >> we invested in staples early in the year and staples in pretty short order started doing well. we also helped start sports authority, bright horizons, all within a six or nine-month period. >> romney helps launch staples, not only with money, but with business and strategic advice. >> this can be a hundred stores so it looks like it could be something big. >> mitt was critical. he acted as our lead investor. and a lead investor in an early stage company is very important because they manage your relationships with other investors and the board. having somebody with mitt's savvy at your side was really helpful. >> next for bain is funding leveraged buyouts, acquiring mostly troubled companies using loans or leverage, and then restructuring and selling them off for a profit. >> bain usually makes money no matter what. one thing about leveraged buyouts, they are structured so that the investment firm can make money for their investors which are pension fund

so you sort of can't lose. >> bain capital initially invests in startup companies. bain strikes it big. >> we invested in staples early in the year and staples and -- in pretty short order started doing well. we also helped start sports authority, bright horizons, all within a six or nine-month period. >> romney helps launch staples, not only with money, but with business and strategic advice. >> this can be a hundred stores so it looks like it could be something big. >> mitt was critical. he acted as our lead investor. and a lead investor in an early stage company is very important because they manage your relationships with other investors and the board. having somebody with mitt's savvy at your side was really helpful. >> next for bain is funding leveraged buyouts, acquiring mostly troubled companies using loans or leverage, and then restructuring and selling them off for a profit. >> bain usually makes money no matter what. one thing about leveraged buyouts, they are structured so that the investment firm can make money for their investors which are pension funds

so you sort of can't lose. >> bain capital initially invests in startup companies. years, bain strikes it big. >> we invested in staples early in the year and staples and -- in pretty short order started doing well. we also helped start sports authority, bright horizons, all within a six or nine-month period. >> romney helps launch staples, not only with money, but with business and strategic advice. >> this can be a hundred stores so it looks like it could be something big. >> mitt was critical. he acted as our lead investor. and a lead investor in an early stage company is very important because they manage your relationships with other investors and the board. having somebody with mitt's savvy at your side was really helpful. >> next for bain is funding leveraged buyouts, acquiring mostly troubled companies using loans or leverage, and then restructuring and selling them off for a profit. >> bain usually makes money no matter what. one thing about leveraged buyouts, they are structured so that the investment firm can make money for their investors which are pensi

at the time, bain capital was relatively new and romney explains the company mission. >> bain capital is an investment partnership which was formed to invest in startup companies and. then to take an active hand in managing them and hopefully five to eight years later to harvest them at a significant profit. the fund was formed on september 30th of last year. it's been about ten months then. it was formed with $37 million in invested cash. >> editing of the video was done prior to "mother jones" obtaining it but the key phrase in the videotape is this. harvest them at a significant profit. now, this may be no big deal to private equity firms, but let's be very clear. romney basically is describing an economic model firmly rejected by the middle class of this country, because they are the ones who suffer. the people that lose their jobs to see them go overseas. that's an economic model. which throws workers to the wolves. romney has been grasping to defend this economic model throughout his campaign. >> i'm very proud of the fact that throughout my career i have worked to try and build

and bain capital was born. jeffrey reinert. >> a lot of late nights, a lot of learning. but a lot of success. >> what kind of a leader was mitt romney during those early years? >> i would say in the early years, mitt was a lead-by-example kind of leader. he dug in, did analysis side by side with us. >> and it paid off. bain capital invested in more than 100 companies, nearly doubling its returns for clients annually. >> how are you doing? >> romney made a lot of money. and he would later claim created a lot of jobs. but a former bank colleague who talked off camera about whether the company's emphasis was on job creation told cnn, quote, we were in the business of creating value for investors. was job creation or making money the goal? >> well, every business is organized to create a return for the people who invest in the business. and as businesses are successful and profitable, they're able to hire people. and they can hire more people the more successful they are. businesses are created to provide a return

they've invested something like 1.5 billion with a b in bain capital. te universities which have their endowments invested with bain, including such schools as columbia university, where obama went undergrad. and harvard where they both went to law school. you have very large government employee union-type pension funds, major universities and center left foundations such as the ford foundation an th the oprah winfrey foundation which has invested in bain. you have a lot of groups on the left side of the political spectrum complaining about bain yet that's where they have invested their money and they are profiting from the corporation which they denounce as founders of outsourcing and a cold-hearted company and that's where many of them have their money and people are pensioners, who are enjoying their pensions because of the excellent financial returns that bain capital has been able to plea dues. heather: that begs the question then why would the government, university leaders, foundation chief let a company like bain, you know, over sea their assets?

. >> bain capital is an investment partnership. >> i'll ask robert reich what mitt romney means when he says he's harvesting companies. >>> if it's a legitimate rape, the female body has ways to try to shut that whole thing down. >> and the guy who has no idea wh htag t i comes to women has the nerve to call senator claire mccaskill unladylike. we'll bring you the latest on the todd akin disaster. good to have you with us tonight, folks. thank for watching. wa kked f 20 eltion in january. today it was the first state where people could cast their votes in person for the general election. the race is on. the race has been tight in iowa, but president obama has the momentum. the latest ten-day poll avere frreleols"ws president obama with nearly a five-point lead. iowa voters were out in full force starting at 7:00 this morning. one election commissioner sa this could be a record-breaking year. this was by far the busiest opening day we've had in the ten yes i' beein oe. erin 1eoe. 100 would have been a good number. that's what it was four years ago. we're well past that. we'rnot to noo

also on the show, bain capital. mitt romney's private he can quit firm is no longer so private, it is in the headlines, on the campaign trail, on your tv screen. what is it really all about? steve pagliuca one of those that runs the firm joins me. >>> just when we need it most. what is it? i'll explain. >>> and, finally, candidate barack obama of brazil? but first here's my take. president obama has sewed up the -- surged in the polls this week, and republicans have been quick to figure out the problem. mitt romney. peggy noonan said his rolling campaign has been a calamity. shouldn't it puz puzzle us that romney's campaign is so incompetent, given his reputation for, well, competence. after all he founded one of the leading firms, turned around the salt lake city olympics and was a very successful governor. how did he get so clumsy so fast? in fact, the problem is not romney. but the new republican party, given the direction it has moved and pressures from the extreme, powerful elements, any nominee would face the

buatnoe ere of private equity and it's certainly not the centerpiece of bain capital. when mitt romney was talking art about harvesting and maximizing profits, what he was talking about was a technique of squeezing payrolls. payrolls are 70% of the cost structure of most companies. the's easeiest way is to squeeze payrolls, get rid of people, cut benefits, to even cut wages. that is too ofn exactly what prate uity managerdo. bee sehere n out for the long term. they're not out for the 20 or 25 years, the new products, the new possibilities. they are out to, in the short term, maximize profits for themselves and for their investors. >> so e connection here is, i believe, personall that if mitt romney were to be president of t united states, he would support and advocate legislation that it would make it eaer for oratnsdot , outsource the jobs and he wants to have, you know, right-to-work in every state in america. he's been very clear on that. what does this say to the middle class? not to be fear mongering, but what would this do to the middle class in this country? >>

and bain capital was born.tner jeffrey rennart. >> it was a lot of long hours, a lot of late nights and a lot of learning but a lot of success. >> so what kind of a leader was mitt romney during those early years? >> i would say in the early years, mitt was a lead by example kind of leader. he -- you know, he dug in, did, you know, did analysis side by side with us. >> and it paid off. bain capital invested in more than 100 companies, nearly doubling its returns for clients annually. >> how you doing? >> romney made a lot of money. he would later claim, created a lot of jobs. but a former bank colleague, who talked off camera about whether the company's emphasis was on job creation told cnn, quote, we were in the business of creating value for investors. >> was job creation or making money the goal? >> well, every business is organized to create a return for the people who invest in the business. and as businesses are successful and profitable, they're able to hire people. they can hire more people the more suc

mitt romney, who was the head of bain capital, when you see the number of jobs that corporations dissolved was the head of the capital and now seeing what is taking place. raise a very important issue. when i was telling the story of the workers to sit around the campfire at night and go to their ships in the morning -- their ships in the morning on a job -- from a company that was owned by bain capital, they sat around the campfire late at night. they did not find fault with the chinese workers. it was the policies of our government that allowed their jobs. sensada owned by bain capital is profitable. they just want to make more money. it is not only the pope said bain capital better coping with this. i encourage people to go see for yourself. you rarely see this unfolding for yourselves. people are straining in freeport, ill., to be there to talk to the workers. they trained their own replacements. one worker was sent to china and she learned that her company was being sold. she was training people there and here, the workers, adding insult to injury, bring in the chinese workers, and th

also on the show, bain capital. mom's private firm is no longer quiet. it's in the headlines, on the campaign trail, and on your tv screen. what's it all about? steve pagliuca who is one of the people who runs the show joins me. >>> just when we need it most. what is it? i'll explain. >>> and finally, candidate barack obama of brazil? but first here's my take. president obama has sewed up the poll this week and the republicans have been quick to figure out the problem. mitt romney. peggy noon nan said his rolling campaign has been a calamity. shouldn't we be so concerned it's income tent as noonan calls it given his reputation for, well, competence. after all he founded one of the leading firms, turned around the salt lake city oliympics as wasa very successful governor. how did he get so clumsy so fast? in fact, the problem is not romney. it tees republican party. given the manner in which it's moved and the pressures, any nominee would face the same challenge. can you be a serious candidate for the general election while not outraging the republican ba

in this bain capital clip -- we don'knowf itte see the entire tape himself. he's talking about his company and harvesting the profits. not about creating jobs or saving jobs. mark. >> yeah. well, this is another in a sees oveton't make up for a good week or two for the romney campaign. this strikes me as an issue that's deeper and more problematic in some ways because the whole issue of bain and what bain means and the whole concept rivate equity is a debate that thiul -- that should have been had a long time ago in the campaign. i would liked to have seen the romney campaign put that issue forward rather than waiting for it to be taken on later in the campaign wn the don't have an opportunity to talk about job t terms.and what pvate equit rather, they do it late in the campaign in a defensive posture, which is problematic. >> mark, is that the reason that the conversation was avoided? we heard so many times that governor romney would describe bain and h role there and the value of that company. knoitriequities. we know how that game works, at least to some d

and bain capital was born.jeffrey reinert. >> a lot of late nights, a lot of learning. but a lot of success. >> what kind of a leader was mitt romney during those early years? >> i would say in the early years, mitt was a lead-by-example kind of leader. he dug in, did analysis side by side with us. >> and it paid off. bain capital invested in more than 100 companies, nearly doubling its returns for clients annually. >> how are you doing? >> romney made a lot of money. and he would later claim created a lot of jobs. but a former bank colleague who talked off camera about whether the company's emphasis was on job creation told cnn, quote, we were in the business of creating value for investors. was job creation or making money the goal? >> well, every business is organized to create a return for the people who invest in the business. and as businesses are successful and profitable, they're able to hire people. and they can hire more people the more successful they are. businesses are created to provide a return t

in 1985. >> bain capital is an investment partnership which was formed to invest in start-up companies and on-going companies then to take an active hand in managing them and hopefully five to eight years later to harvest them at a significant profit. >> eliot: learning to harvest profits from companies is not the same as knowing how to create jobs and if that's not enough to motivate democrats to go out and work for the president, the jewish council for research and education has released a four-minute ad featuring actor samuel l. jackson that might do the trick. >> schools the environment unions, fair pay. we're all on our own if romney has his way. he's against safety nets. if you fall, tough luck! so i strongly suggest that you wake the [ bleep ] up. >> eliot: not sure what the beep was. for more on the presidential campaign, let's go to alina and mother jones staff reporter andy crowell. alina, let's start with you. am i overstating the case when i say ohio is done? a 10-point margin at this point i've gone through a couple of campaigns. i don't see how you move 10%. tell me i'm w

the dirty secret is that mitt romney grew his company bain capital by using massive debt that bankrupted companies while he and associate extracted fees and profits. i quote this is the plain stark reality that has eluded the america's top political journalists for two cock consecutive campaigns. in the past few decades romney has had more debt. here is matt tia bibi. once again you unmask the titans of finance. mitt romney is nothing but a debt machine. >> right, it's join, the genesis of this was when i was covering romney's campaign earlier this year and he kept hammering home how debt was going to destroy the country and there was this prairie fire of dent that was going to burn our children alive. i looked around and thought doesn't anybody know what he did forfor a career? he piled on debt on companies that would have to pay it back for him. >> eliot: people who scream non-stop that public debt are dangerous are the very ones who created the most enormous amount of private sector debt. and no one asked them to confront that. >> it's incredible. he talks about this prairie fire of d

at him dickinson at rolling stone uncovered bain capital's parent company bain and company ran into serious financial problems in the late one nine hundred eighty s. and mitt romney was tapped to try to save the company the company owed more than thirty million bucks to a bank that had been taken over by the f.b.i. see the federal deposit insurance corporation after failing again and again to get the company back on track romney decided to play hardball with bain's creditors basically forcing them to write down bain step romney gave everyone a take it or leave it deal take thirty cents on the dollar on every dollar the beno owes or he would loot the company divert whatever remaining assets were there toward paying big executive bonuses then declare bankruptcy and then bain's creditors including our government the f.d.i.c would get nothing. that hardball worked the f.d.i.c agreed to take just a fraction of the money the bain owed them and forgive the rest of the debt huge bailout for bank. in other words romney didn't build it himself but this might be the least of romney's been problems in

bain and company survived bain and company went on bain capital went on to make a boatload of money taking over companies loading them with debt while stripping them to the bone offshore in american jobs and pocketing huge profits romney went on to earn more than a third of a billion dollars energy in bain and now he's running for president all thanks to that government bailout again he didn't build but while the one nine hundred eighty s. government bailout of bain secured the american dream for mitt romney the millions of americans who got screwed by wall street during the housing crisis never got bailed out and there's stories reveal a very different america here's the story of norman russo who we battled with wells fargo for years to stay in the his home in this home in his home after he was conned into one of those exploding adjustable rate mortgages facing foreclosure and living out his life in an r.v. with his rife reso wasn't bailed out like mitt romney had been he instead shot himself there's the story of sergeant robert robert bales you may have heard of him he was the american s

if bain capital took over the romney campaign, they would fire romney.he money being spent, 900 employees, the obama campaign does spending an average of take it out to a year's long, amortize it that way, $36,000 a year per employee. the same thing for the romney campaign, you take 403 employees, this was through the month of august, $77,000 annually. he gave nine employees romney did, a bonus of $207,000. he's getting nothing for it. one of the interesting things about why that is is that when you put an ad up and you're a campaign and you are not a super pac, you are charged a different rate. $125 ad in ohio is $125 for the romney campaign, same ad is $900 for the obama campaign. >> somehow, he has bungleled this in a way where president obama has run far more ads than romney has even though romney had more money. >> and he wants to be the c.e.o. of the entire nation. what he's doing chenk it's the super pac. the super pac has to spend so much more, nine to one to match what the obama campaign can do. >> good analysis. when we come back, what if you d

romney campaign, saying, quote, in addition to starting new businesses, mitt romney helped build bain capital by turning around broken companies and creating and saving thousands of jobs. we should point out this idea of harvesting is a common term in private equity and venture capital. it usually doesn't happen according to one manager until the company has grown significantly and a lot of jobs created. >> shep: john, that is going. we're less than a week from the first presidential debate. we'll be there in denver next wednesday. then watch bret baier and megyn kelly with prime time coverage. it starts just before 9:00 eastern time, 7:00 in the mountain time zone right here on the most powerful name in news. >> half a billion dollar government loan wasn't enough to help solyndra to stay in business. now, the feds are set to give $200 million to another solar shop. plus if you think the mona lisa, she is not back there men have named you. wait until you meet the younger version. mona lisa knocked off some years. plastic surgery? nope so now i can be in the scene. advair is clinically proven

mitt is reluctant to be on the defensive and defend bain capital specifically. >> i'm not sure. at some point during this election he will have to make a defense of capitalism and show how much value it created in the u.s. relative it europe and japan. 40 million jobs is an enormous number of jobs in the u.s.. we have, you look at hours of work available for working age adult. 35 to 40% greater in the u.s. than it is in germany and france. that has a huge impact on the middle class here. we've put about 20 million immigrants into our economy. given those families work. we put tens of millions of people to work offshore. what other high wage economy done more for the middle class and the working poor than the u.s. economy. melissa: we're out of time. we barely sached -- scratched the surface. josh korb man wrote a book against private equity as well. he has different point of view. come back and talk to us again. your defense of private equity is fascinating. thank you so much. >> sure. melissa: bringing the silicon valley's best minds into the middle of the paci

. >> next, the "snl" take on what happens when bain capital comes to town. >> after bain capital shutown the mill, i was out of work for a year. >> mitt romney and bain capital bought the text mile mill where raymond had worked for 18 years. >> next i worked for a trucker and then bain came along and bought the trucking company and bought that, too. i then got hired part time at orange julius until bain shut that company down. just that one store. at this point i said to myself, what the hell is going on here? i got a job at a shoe sign stand under an assumed name working just for tips. but bain somehow found out, bought the business, and moved it to china. >> each time raymond mccoy got a new job, mitt romney and bain capital closed down the company for the sole purpose of laying him off. >> there is much more to come, you can be assured of that. >>> next, guess what crowded business owners have two sets of business plans for the holiday season, one if president obama gets re-elected and one if mitt romney wins the election. gun retailers responding to the concern that president obam

not less bloody or simple war because they're lazy because they don't want to work for a living bain capital is a way not to work for a living it's a way to strip companies with debt and employ debt and increase debt you don't want to actually work for a living you want to parade around on stage and you know put some pastries on your just and put them around in opposite directions and pretend you have some significance in this world other than the fact that you're a rotting no good leverage by the google and look at the two billionaires behind this tea party sort of movement you have the koch brothers who profit from the higher oil prices and energy prices then you have sheldon eighty seven who this whole war sort of mentality benefits sheldon adelson because most of his income comes from china and if. the g.o.p. platform has now announced basically that when they get and they're going to decree that china is a currency manipulator so the un he thinks will rise his income will go up so it's all about you could make graffiti polite but it's still graffiti you could say you're about freedom an

investor meetings and still today are one of the largest investor groups in bain capital. your comment, then junot diaz's. >> i think if governor romney had ever met one of the family members of people brutally killed during that time, maybe he would have thought twice about accepting the blood money. to me, it is really unacceptable. when you look -- i believe it was around $9 million that he accepted as the investment money. but where this money came from and the people who gave it to him is something that he really should have looked at much more closely. because it is related to the most terrible atrocities. as ambassador robert white says in our film, when you are a group of uniformed butchers, the people don't emigrate, they flee. and to me, it is unbelievable that now governor romney talks about immigrants with derogatory terms like "legals," yet he profited from the funding that actually cause much of the immigration to the u.s. from el salvador. >> mitt romney talks about people should self the port. >> i think ross south america, nicaragua, el salvador, honduras,

he mentioned bain capital, the speech last night, you decided to dial t. let's see if the negative ads had any impact here. >> weren't always success envelope bain, but no one ever is in the real world of business. that's what this president doesn't seem to understand. business and growing jobs is about taking reivegs, sometimes failing, sometimes succeeding, but always striving. it is about dreams. usually it doesn't work out exactly as you might have imagined. steve jobs was fired at apple. and then he came back and changed the world. it's the genius of the american free enterprise system to harness the extraordinary creativity anditallent and industry of the american people with a system that is dedicated to creating tomorrow's prosperity, not trying to redistribute today's. >> sean: 92-84! i mean, i was surprised by that. >> and what's interesting, that was the highest tested moment of the entire convention. and it's because it is not about politics, sean. it's about people. it's about jobs. it is about creativity and ingenuity. you know i have been cri

that is what mitt romney and bain capital have been doing for years. they take a good company and outsourcing to china. what they do with the other companies, they will go in there and harvest, like you say, they put the minimum down, they buy the company, loaded up with debt, pay their managers and give them big bonuses and below the company up and run the machinery and the workers to death and they do like a car thief does with a car. they run it like a chop shop. they take the best part of the company, sell it off, and the rest they scrap. that is what they do with their employees and the american taxpayer, we pay the company's federally backed up pension funds. guest: you have the formula down. what is happening there is happening all over this country. one of the workers who has worked there for 33 years, when he heard that it was bain capital, they had some hope that there was a human face and they could reach out to mitt romney. this area of northwest illinois is between two swing states. he and another worker at the plant, they went to delton d

he mentioned bain capital, the speech last night, you decided to dial t. let's see if the negative ads had any impact here. >> weren't always success envelope bain, but no one ever is in the real world of business. that's what this president doesn't seem to understand. business and growing jobs is about taking reivegs, sometimes failing, sometimes succeeding, but always striving. it is about dreams. usually it doesn't work out exactly as you might have imagined. steve jobs was fired at apple. and then he came back and changed the world. it's the genius of the american free enterprise system to harness the extraordinary creativity anditallent and industry of the american people with a system that is dedicated to creating tomorrow's prosperity, not trying to redistribute today's. >> sean: 92-84! i mean, i was surprised by that. >> and what's interesting, that was the highest tested moment of the entire convention. and it's because it is not about politics, sean. it's about people. it's about jobs. it is about creativity and ingenuity. you know i have been cri

and tonight they will also take on some of the claims of that bain capital is a good thing. it will have people that work for companies that was taken over by bain capital saying something a little bit different than what mitt romney would like to hear. we'll find out about that later tonight. back to you. >> thank you. cbs 5 will have live reports on the democratic convention throughout the weekend we're also streaming the convention live on cbssf.com. >> @ this hour stocks are up on wall street, taking a look at the big board right now, you can see that the dow is up four points following reports that facebook is having a better day than yesterday. stocks are up after the facebook ceo mark zuckerberg said that he does not intend to sell any of his controlling stake for at least one year. the city of san jose making legal moves against opponents of a stadium for the oakland a's. officials say that they want to expose the role and the efforts of the giants to block that effort. they are seeking a court order that would allow them to examine the organizational structure of th

. >> shepard: we are going to hear from a couple of bain capital staffers during the convention this week. >> we are. senior obama officials confirm that there will be officials of bain capital who worked will mitt romney who will speak out at the democratic election talk about some of the bad parts they think in mitt romney's record. this is more of the same in terms of the attempts that the obama campaign have made to sort of mark up these credentials as a businessman that mitt romney has brought to the table. one potential problem with that strategy though the "new york post" reporting that various democrats and union workers have benefited from bain capital because they helped manage their nest eggs, unionize workers and some of their accounts. it's helped some democrats bain capital and some of that could blow up in their face. >> the president toured new orleans and some of the damage around new orleans today and the effects of hurricane isaac. pictures as the president walking around at an event. is he about to speak there in new orleans. you can't see him in a picture but you