How the Corporate Media Obscure the Truth About Mitt Romney's 'Vulture Capitalism' at Bain
The media's knee-jerk hostility to criticism of Wall Street is muddying the waters.
The leveraged buy-out firm will put down a fraction of the cost of buying an ailing company. The balance of the transaction is borrowed, but the debt goes onto the books of the target company, not the private equity firm – the struggling company basically finances the lion's share of its own sale.
The target company's debt payments then increase significantly, and that debt service is written off, reducing its tax burden a great deal. This ...
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