Perhaps none no company Bain Capital dealt with describes the type of “vulture capitalism” they practiced better than American Pad & Paper, or Ampad. So as you might expect it is the subject of a new video from the Obama campaign. It’s a rather brutal story. Romney took over Ampad, drove it into bankruptcy, and Bain turned its $5 million investment into $100 million. The workers at the plant in Marion, Indiana, lost their jobs, wages, health care, and pensions. It might also be important to note that while Bain took $20 profits for every dollar invested in Ampad. all the other creditors got $0.002.
Let me just do the math for you here. Bain’s return was 2,000% while the creditors got back just two tenths of one percent. On a dollars per dollars basis, that means Bain managed to do 10,000 times than creditors, even though they both did business with the very same company. Interesting …..