Mitt romney why is he rich

Blum Capital, a private equity firm founded in by her husband, Richard Blum, is the source for most of that wealth. Connecticut Sen. His spouse, Cynthia Malkin, is a real estate investor, as well as an heiress to the Malkin property empire, which is where the bulk of his wealth comes from.

James Risch of Idaho is another wealthy member of the U. From , U. John Hoeven has served as the senior U. Hoeven remains an owner of First Western Bank and sits on its board of directors. Like many of the richest people in Congress, Sen. Johnson made his fortune in the world of business before he became a politician. In the late '70s, the senator began employment as an accountant at PACUR, a Wisconsin-based polyester and plastics manufacturing company owned by his brother-in-law.

As time passed, he moved up through the ranks, and eventually became the company's CEO by the mid-'80s. McConnell has been a senator for a long time, starting in The bulk of his wealth comes from a gift his father bestowed on him in The bulk of his investments are in a Vanguard Index fund. Many citizens and analysts believe that Congress is out of touch with the needs of the average American citizen because of the sizable wealth of many of its members.

His family founded and grew a material-handling distributor company and a large portion of his wealth is in Lebanon House Inc. The richest U. The salary of a U. United States Government. Accessed March 23, United States Senate. John Hoeven, U. Senator from N. Business Leaders. Fiscal Policy. Wealth Management. Actively scan device characteristics for identification.

Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. In Bain and Company was facing an obscure future and asked Romney to return.

In less than two years Mitt transformed the company and made it profitable once again. He later returned to his role at Bain Capital. Mitt announced his intention to leave Bain Capital in He transferred his ownership to existing partners.

Under a signed agreement, Romney was allowed to receive a passive share of the profit. This agreement resulted in him earning an annual income worth millions of dollars. Romney then campaigned for presidential nomination for the Republican Party. Although he received 4. For the second time, Romney again announced his intention to represent the Republican Party in the presidential election. His campaign was successful and he was nominated to represent the Republicans.

That same man then runs for president riding an image of children roasting on flames of debt, choosing as his running mate perhaps the only politician in America more pompous and self-righteous on the subject of the evils of borrowed money than the candidate himself. Four years ago, the Mitt Romneys of the world nearly destroyed the global economy with their greed, shortsightedness and — most notably — wildly irresponsible use of debt in pursuit of personal profit.

The sight was so disgusting that people everywhere were ready to drop an H-bomb on Lower Manhattan and bayonet the survivors. Instead of cars and airplanes, we built swaps, CDOs and other toxic financial products.

Instead of building new companies from the ground up, we took out massive bank loans and used them to acquire existing firms, liquidating every asset in sight and leaving the target companies holding the note. A takeover artist all his life, Romney is now trying to take over America itself. Is America really ready for another Republican president who was a prep-school cheerleader? And like other great presidential double-talkers such as Bill Clinton and George W.

Bush, Romney has shown particular aptitude in the area of telling multiple factual versions of his own life story. It was not my desire to go off and serve in Vietnam. Like John F. Kennedy and George W. Then, faced with making a career choice, Mitt chose an odd one: Already married and a father of two, he left Harvard and eschewed both politics and the law to enter the at-the-time unsexy world of financial consulting. He could have done anything — but what does he do?

Romney started off at the Boston Consulting Group, where he showed an aptitude for crunching numbers and glad-handing clients. The reality is that toward the middle of his career at Bain, Romney made a fateful strategic decision: He moved away from creating companies like Staples through venture capital schemes, and toward a business model that involved borrowing huge sums of money to take over existing firms, then extracting value from them by force.

It then puts down a relatively small amount of its own money and runs to a big bank like Goldman Sachs or Citigroup for the rest of the financing. Most leveraged buyouts are financed with 60 to 90 percent borrowed cash. The takeover firm then uses that borrowed money to buy a controlling stake in the target company, either with or without its consent. Once management is on board, the rest is just math. So in addition to whatever problems you had before, Tricycle Inc.

Fortunately, the geniuses at Bain who now run the place are there to help tell you whom to fire. So Tricycle Inc. Once all that debt is added, one of two things can happen. The company can fire workers and slash benefits to pay off all its new obligations to Goldman Sachs and Bain, leaving it ripe to be resold by Bain at a huge profit.

Or it can go bankrupt — this happens after about seven percent of all private equity buyouts — leaving behind one or more shuttered factory towns. Either way, Bain wins. By power-sucking cash value from even the most rapidly dying firms, private equity raiders like Bain almost always get their cash out before a target goes belly up.

Think Paulie buying all those cases of Cutty Sark in Goodfellas. When the note comes due, the mobster simply torches the restaurant and collects the insurance money.

Reduced to their most basic level, the leveraged buyouts engineered by Romney followed exactly the same business model. There are many stories of successful turnarounds fueled by private equity, often involving multiple floundering businesses that are rolled into a single entity, eliminating duplicative overhead.

Experian, the giant credit-rating tyrant, was acquired by Bain in the Nineties and went on to become an industry leader.

Everyone had a stake in the success of those old businesses, which spread prosperity by putting people to work. The objective of the LBO business is maximizing returns for investors. The mortgage analogy is so obvious, in fact, that even Romney himself has made it. Romney has always kept his distance from the real-life consequences of his profiteering. This is typical Romney, who consistently adopts a public posture of having been above the fray, with no blood on his hands from any of the deals he personally engineered.