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The Straight Story

(48,121 posts)
Wed Jul 18, 2012, 01:09 AM Jul 2012

"before his retirement from Bain Capital in late 2001"

Romney utilized offshore tax havens to help investors
Practice called 'perfectly legal'

Email|Print| Text size – + By Bob Drogin
Los Angeles Times / December 19, 2007

Romney first purchased a 3.25 percent share of the Cayman fund and was listed as a "general partner (passive)" before his retirement from Bain Capital in late 2001, records show. He put his financial assets into a blind trust in January 2003, when he took office as governor of Massachusetts.

In the Cayman Islands, Romney was listed as a general partner and personally invested in BCIP Associates III Cayman, a private equity fund that is registered at a post office box on Grand Cayman Island and that indirectly buys equity in US companies. The arrangement shields foreign investors from US taxes they would pay for investing directly in US companies.

Romney still retains an investment in the Cayman fund through a trust. Campaign disclosure forms show the investment paid him more than $1 million last year in dividends, interest, and capital gains.

In Bermuda, Romney served as president and sole shareholder for four years of Sankaty High Yield Asset Investors Ltd. It funneled money into Bain Capital's Sankaty family of hedge funds, which invest in bonds and other debt issued by corporations, as well as bank loans.

Like thousands of similar financial entities, Sankaty maintains no office or staff in Bermuda. Its only presence consists of a nameplate at a lawyer's office in downtown Hamilton, capital of the British island territory.

"It's just a mail drop, essentially," said Marc B. Wolpow, who worked with Romney for nine years at Bain Capital and who set up Sankaty Ltd. in October 1997 without ever visiting Bermuda. "There's no one doing any work down there other than lawyers."

http://www.boston.com/news/nation/articles/2007/12/19/romney_utilized_offshore_tax_havens_to_help_investors/

14 replies = new reply since forum marked as read
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"before his retirement from Bain Capital in late 2001" (Original Post) The Straight Story Jul 2012 OP
Under his retirement agreement..the right to make new investments in Bain funds..2009, The Straight Story Jul 2012 #1
"Romney retains a share of the profits at Bain Capital" Cali_Democrat Jul 2012 #2
A lot of the normal working folk marlakay Jul 2012 #3
Here you go.. emilyg Jul 2012 #7
Is that Kerry's? Or his wife's fortune? grasswire Jul 2012 #9
Then why is it valid emilyg Jul 2012 #12
who is "holding him responsible" for that? n/t grasswire Jul 2012 #13
Many posts on DU. emilyg Jul 2012 #14
Offshore tax shelters = Legalized fraud and tax evasion. reformist2 Jul 2012 #4
and THAT is what being a "fiscal conservative" REALLY means Skittles Jul 2012 #6
Foreign investors. So which foreign investors? DevonRex Jul 2012 #5
Hell, I am beginning to wonder if it was Romney who bet on 9/11... grasswire Jul 2012 #10
Former CIA head was part of that 9/11 bet. dixiegrrrrl Jul 2012 #11
Skanky High Yield Asset Investors Ltd BamBamBane Jul 2012 #8

The Straight Story

(48,121 posts)
1. Under his retirement agreement..the right to make new investments in Bain funds..2009,
Wed Jul 18, 2012, 01:11 AM
Jul 2012

Under his retirement agreement, Romney retains a share of the profits at Bain Capital, as well as the right to make new investments in Bain funds through his trust, until February 2009.

 

Cali_Democrat

(30,439 posts)
2. "Romney retains a share of the profits at Bain Capital"
Wed Jul 18, 2012, 01:21 AM
Jul 2012

So even has he left Bain Capital, he still profited from the outsourcing of American jobs and bankrupting of companies.

marlakay

(11,491 posts)
3. A lot of the normal working folk
Wed Jul 18, 2012, 01:33 AM
Jul 2012

just raising kids, not watching news, and not paying attention ignoring the ads on both sides, if they really understood and knew how most all of his money was raised off shore and that he isn't american apple pie, would turn away.

The whole thing sickens me. Most of our politicians are rich but most of them have made money through books, being a lawyer, old family money etc, things here in america.

I knew Kerry had money through his wife but she got the money from her husbands company and I don't think they had off shore holdings or it definitely would have come out.






 

emilyg

(22,742 posts)
7. Here you go..
Wed Jul 18, 2012, 03:07 AM
Jul 2012

John Kerry's net worth was around $1.2 billion in 2003, the year he began campaigning for the presidency. Not only does his immense wealth eclipse Mitt Romney's, but as uncovered by the Boston Globe, Kerry also made use off offshore bank accounts. However, unlike the Romney's, the Kerry's refused to release tax documents that would show whether they held any other offshore bank accounts.


Even worse, John Kerry was caught hiding a $7 million dollar yacht in Rhode Island to avoid paying Massachusetts taxes. By doing so, he avoided paying nearly $500,000 in taxes.

from the Kansas Citian

grasswire

(50,130 posts)
9. Is that Kerry's? Or his wife's fortune?
Wed Jul 18, 2012, 05:01 AM
Jul 2012

And wasn't Mrs. Kerry's fortune amassed prior to their marriage?

If so, it's not valid to hold John Kerry responsible for his wife's fortune.

DevonRex

(22,541 posts)
5. Foreign investors. So which foreign investors?
Wed Jul 18, 2012, 02:21 AM
Jul 2012

From the article:

"This is not Mitt trying to do something strange," he said. "This is Bain trying to raise some number of billions from investors around the world."

My take is that there could be some tough questions about who his investors are.

dixiegrrrrl

(60,010 posts)
11. Former CIA head was part of that 9/11 bet.
Wed Jul 18, 2012, 08:48 AM
Jul 2012

Alvin Bernard "Buzzy" Krongard[1] (more commonly "A.B.", born c. 1936) was the Executive Director of the Central Intelligence Agency. He was appointed by George Tenet on March 16, 2001.

Krongard's name was brought up in conjunction with investigations into suspected 9/11-related insider trading because of timely Wall Street trades made through the investment bank he used to head, Alex. Brown.
So 6 months later he is making a profit off 9/11.....hmmmm

And remember this about him????

At a November 14, 2007 House oversight committee hearing about Blackwater, investigating allegations of improper interference by Krongard's brother, Howard, in Justice Department investigations of Blackwater and other State Department contractors, Chairman Henry Waxman stated that A. B. Krongard was on "Blackwater's advisory board".[7] Howard Krongard at first denied that his brother had any connection with Blackwater, saying:

I can tell you, very frankly, I am not aware of any financial interest or position he has with respect to Blackwater. When these ugly rumors started recently, I specifically asked him. I do not believe it is true that he is a member of the advisory board that you stated. And that's something I think I need to say.[8]

However, when confronted with a July 26 letter from Blackwater founder and CEO Erik Prince to Buzzy Krongard asking him to join Blackwater's advisory board, followed by a September 5 letter welcoming Krongard to the board and a report from Rep. Elijah Cummings stating that Buzz Krongard had been expected to attend a Blackwater board meeting earlier that week,[8] Krongard said he had called his brother during the ensuing break in the hearings and learned of this conflict of interest for the first time, saying "I'm not my brother's keeper, and we don't discuss our business with each other".[9] He then recused himself from the investigation.[8][9][10] Committee chairman Henry Waxman issued a memorandum [11] summarizing the discrepancies between the two brothers' recollections of what Buzzy told Howard.
http://en.wikipedia.org/wiki/Buzzy_Krongard

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