Archive for June, 2012
Posted in 2012, Affordable Care Act, health care, Health Care Reform, Healthcare, Healthcare Reform, Obama 2012, Obamacare, President Barack Obama, President Obama, SCOTUS, Supreme Court, Uncategorized, tagged 2012, Affordable Care Act, Barack Obama, health care, Health Care Decision, Health Care Law, Health Care Reform, Healthcare, Healthcare Reform, Healthcare Supreme Court, Obama, Obama 2012, Obama Care, Obama Health Care, Obama Supreme Court, Obamacare, Politics News, SCOTUS, supreme court, Supreme Court Health Care, Supreme Court Health Care Decision, Supreme Court Health Care Ruling, Supreme Court | Tagged Affordable Care Act on June 28, 2012| 2 Comments »
Posted in 2012, Affordable Care Act, health care, Health Care Reform, Healthcare, Healthcare Reform, Obama, Obama 2012, Obamacare, SCOTUS, Supreme Court, tagged Affordable Care Act, Barack Obama, health care, Health Care Decision, Health Care Law, Health Care Reform, Healthcare Supreme Court, Obama Care, Obama Health Care, Obama Supreme Court, Obamacare, Politics News, supreme court, Supreme Court Health Care, Supreme Court Health Care Decision, Supreme Court Health Care Ruling, Video on June 28, 2012| Leave a Comment »
By- Mike Sacks
Posted: 06/28/2012 10:10 am Updated: 06/28/2012 11:16 am
WASHINGTON — The individual health insurance mandate is constitutional, the Supreme Court ruled Thursday, upholding the central provision of President Barack Obama’s signature Affordable Care Act.
The controlling opinion, written by Chief Justice John Roberts, upheld the mandate as a tax, although concluded it was not valid as an exercise of Congress’ commerce clause power. Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan joined in the outcome.
The decision in National Federation of Independent Business v. Sebelius comes as something of a surprise after the generally hostile reception the law received during the six hours of oral arguments held over three days in March. But by siding with the court’s four Democratic appointees, Chief Justice Roberts avoided the delegitimizing taint of politics that surrounds a party-line vote while passing Obamacare’s fate back to the elected branches. GOP candidates and incumbents will surely spend the rest of the 2012 campaign season running against the Supreme Court and for repeal of the law.
Five justices concluded that the mandate, which requires virtually all Americans to obtain minimum health insurance coverage or pay a penalty, falls within Congress’ power under the Constitution to “lay and collect taxes.”
“The individual mandate cannot be upheld as an exercise of Congress’s power under the Commerce Clause,” Roberts wrote. “That Clause authorizes Congress to regulate interstate commerce, not to order individuals to engage in it. In this case, however, it is reasonable to construe what Congress has done as increasing taxes on those who have a certain amount of income, but choose to go without health insurance. Such legislation is within Congress’s power to tax.”
Ginsburg, writing separately for the four liberals, said they would have upheld the mandate under the commerce clause too. “Unlike the market for almost any other product or service, the market for medical care is one in which all individuals inevitably participate,” she wrote. “Virtually every person residing in the United States, sooner or later, will visit a doctor or other health care professional.”
Justices Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito joined in a dissent.
Posted in 2012, 2012 campaign, 2012 Election, Bain Capital, Mitt Romney, tagged 2012, 2012 election, Bain Capital, Bain Capital's investments, Elections 2012, Mitt Romney, Politics News, Republicans, Romney campaign, The Washington Post, Washington Post on June 27, 2012| Leave a Comment »
By DYLAN BYERS|
6/27/12 3:33 PM EDT
“We are very confident in our reporting,” Washington Post spokesperson Kris Coratti told POLITICO following a meeting between the Post’s executive editor Marcus Brauchli and Mitt Romney campaign representatives, who had sought a retraction from the paper.
The Romney campaign would not discuss the meeting. “It was an off-the-record private meeting so I don’t have anything for you on that,” campaign press secretary Andrea Saul told POLITICO.
UPDATE: Here are the Romney campaign’s complaints against The Washington Post story.
Posted in Arizona Immigration Law, immigration, S.B. 1070, Supreme Court sb1070, tagged Arizona Immigration Law, Arizona Immigration Law Decision, Arizona Immigration Law Ruling, Ley SB1070, Politics News, sb1070 Decision, sb1070 Ruling, supreme court, Supreme Court Arizona Immigration Law, Supreme Court sb1070, Video on June 25, 2012| Leave a Comment »
By- Mike Sacks
Posted: 06/25/2012 10:19 am Updated: 06/25/2012 2:52 pm
WASHINGTON — The Supreme Court on Monday delivered a split decision in the Obama administration’s challenge to Arizona’s aggressive immigration law, striking multiple provisions but upholding the “papers please” provision. Civil rights groups argue the latter measure, a centerpiece of S.B. 1070, invites racial profiling.
Monday’s decision on “papers please” — Section 2(B) in S.B. 1070 — rested on the more technical issue of whether the law unconstitutionally invaded the federal government’s exclusive prerogative to set immigration policy. The justices found that it was not clear whether Arizona was supplanting or supporting federal policy by requiring state law enforcement to demand immigration papers from anyone stopped, detained or arrested in the state who officers reasonably suspect is in the country without authorization. The provision that was upheld — at least for now — also commands police to check all arrestees’ immigration status with the federal government before they are released.
“The nature and timing of this case counsel caution in evaluating the validity of [Section] 2(B),” wrote Justice Anthony Kennedy on behalf of Chief Justice John Roberts and Justices Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor, noting that the law has not yet gone into effect. Because “[t]here is a basic uncertainty about what the law means and how it will be enforced,” the majority chose to allow the law to go forward, but made clear that “[t]his opinion does not foreclose other preemption and constitutional challenges to the law as interpreted and applied after it goes into effect.”
Indeed, such constitutional suits are already proceeding against Arizona’s “papers please” policy. Earlier this month, U.S. District Judge Susan Bolton heard arguments on whether to certify a class of what could be hundreds of thousands of individuals now trying to bring equal protection, free speech and due process challenges to S.B. 1070.
While Arizona succeeded on Section 2(B), the Supreme Court gave the Obama administration a victory by striking three other challenged provisions as stepping on federal prerogatives. Two of the provisions made it a crime for undocumented immigrants to be present and to seek employment in Arizona, while a third authorized police officers to make warrantless arrests of anyone they had probable cause to believe had committed a deportable offense.
“The history of the United States is in part made of the stories, talents and lasting contributions of those who crossed oceans and deserts to come here,” Kennedy wrote. “The National Government has significant power to regulate immigration. With power comes responsibility, and the sound exercise of national power over immigration depends on the Nation’s meeting its responsibility to base its laws on a political will informed by searching, thoughtful, rational civic discourse. Arizona may have understandable frustrations with the problems caused by illegal immigration while that process continues, but the State may not pursue policies that undermine federal law.”
Justices Antonin Scalia and Clarence Thomas each wrote separately to say they would have upheld all four of S.B. 1070’s challenged provisions, while Justice Samuel Alito wrote that he would have upheld all but the provision that criminalized an immigrant’s failure to register with federal authorities.
Posted in 2012, 2012 campaign, 2012 Election, Bain Capital, Cambridge Industries, Mitt Romney, tagged 2012, 2012 election, Bain Capital, Bain’s investors, Cambridge Industries, Election 2012, Elections 2012, Mitt Romney, Politics News, Romney’s experience at Bain, Securities And Exchange Commission on June 23, 2012| Leave a Comment »
Cambridge Industries, an automotive plastics supplier whose losses had been building for three consecutive years, finally filed for bankruptcy in May 2000 under a mountain of debt that had ballooned to more than $300 million.
Yet Bain Capital, the private equity firm that controlled the Michigan-based company, continued to religiously collect its $950,000-a-year “advisory fee” in quarterly installments, even to the very end, according to court documents.
In all, Bain garnered more than $10 million in fees from Cambridge over five years, including a $2.25 million payment just for buying the company, according to bankruptcy records and filings with the Securities and Exchange Commission. Meanwhile, Bain’s investors saw their $16 million investment in Cambridge wiped out.
That Bain was able to reap revenue from Cambridge, even as it foundered, was hardly unusual.
The private equity firm, co-founded and run by Mitt Romney, held a majority stake in more than 40 United States-based companies from its inception in 1984 to early 1999, when Mr. Romney left Bain to lead the Salt Lake City Olympics. Of those companies, at least seven eventually filed for bankruptcy while Bain remained involved, or shortly afterward, according to a review by The New York Times. In some instances, hundreds of employees lost their jobs. In most of those cases, however, records and interviews suggest that Bain and its executives still found a way to make money.
Mr. Romney’s experience at Bain is at the heart of his case for the presidency. He has repeatedly promoted his years working in the “real economy,” arguing that his success turning around troubled companies and helping to start new ones, producing jobs in the process, has prepared him to revive the country’s economy. He has fended off attacks about job losses at companies Bain owned, saying, “Sometimes investments don’t work and you’re not successful.” But an examination of what happened when companies Bain controlled wound up in bankruptcy highlights just how different Bain and other private equity firms are from typical denizens of the real economy, from mom-and-pop stores to bootstrapping entrepreneurial ventures.
Bain structured deals so that it was difficult for the firm and its executives to ever really lose, even if practically everyone else involved with the company that Bain owned did, including its employees, creditors and even, at times, investors in Bain’s funds.
Posted in 2012, 2012 campaign, 2012 Election, Bain Capital, Jobs Overseas, Mitt Romney, outsourcing of American jobs, tagged 2012, 2012 election, American jobs, Bain Capital, China, China and India, Election 2012, India, Jobs, Jobs Overseas, Mitt Romney, Mitt Romney’s financial company, outsourcing, outsourcing of American jobs, overseas, Politics News, Securities And Exchange Commission on June 22, 2012| Leave a Comment »
By Tom Hamburger, Thursday, June 21, 7:53 PM
Mitt Romney’s financial company, Bain Capital, invested in a series of firms that specialized in relocating jobs done by American workers to new facilities in low-wage countries like China and India.
During the nearly 15 years that Romney was actively involved in running Bain, a private equity firm that he founded, it owned companies that were pioneers in the practice of shipping work from the United States to overseas call centers and factories making computer components, according to filings with the Securities and Exchange Commission.
While economists debate whether the massive outsourcing of American jobs over the last generation was inevitable, Romney in recent months has lamented the toll it’s taken on the U.S. economy. He has repeatedly pledged he would protect American employment by getting tough on China.
“They’ve been able to put American businesses out of business and kill American jobs,” he told workers at a Toledo fence factory in February. “If I’m president of the United States, that’s going to end.”
Speaking at a metalworking factory in Cincinnati last week, Romney cited his experience as a businessman, saying he knows what it would take to bring employers back to the United States. “For me it’s all about good jobs for the American people and a bright and prosperous future,” he said.
For years, Romney’s political opponents have tried to tie him to the practice of outsourcing American jobs. These political attacks have often focused on Bain’s involvement in specific business deals that resulted in job losses.
But a Washington Post examination of securities filings shows the extent of Bain’s investment in firms that specialized in helping other companies move or expand operations overseas. While Bain was not the largest player in the outsourcing field, the private equity firm was involved early on, at a time when the departure of jobs from the United States was beginning to accelerate and new companies were emerging as handmaidens to this outflow of employment.
Bain played several roles in helping these outsourcing companies, such as investing venture capital so they could grow and providing management and strategic business advice as they navigated this rapidly developing field.
Over the past two decades, American companies have dramatically expanded their overseas operations and supply networks, especially in Asia, while shrinking their workforces at home. McKinsey Global Institute estimated in 2006 that $18.4 billion in global information technology work and $11.4 billion in business-process services have been moved abroad.
While the export of jobs has been disruptive for many workers and communities in the United States, outsourcing has been a powerful economic force. It has often helped lower the prices that American consumers pay for products and created a global supply chain that has made U.S. companies more nimble and profitable.
Romney campaign officials repeatedly declined requests to comment on Bain’s record of investing in outsourcing firms during the Romney era. Campaign officials have said it is unfair to criticize Romney for investments made by Bain after he left the firm but did not address those made on his watch. In response to detailed questions about outsourcing investments, Bain spokesman Alex Stanton said, “Bain Capital’s business model has always been to build great companies and improve their operations. We have helped the 350 companies in which we have invested, which include over 100 start-up businesses, produce $80 billion of revenue growth in the United States while growing their revenues well over twice as fast as both the S&P and the U.S. economy over the last 28 years.”
Until Romney left Bain Capital in 1999, he ran it with a proprietor’s zeal and attention to detail, earning a reputation for smart, hands-on management.
Bain’s foray into outsourcing began in 1993 when the private equity firm took a stake in Corporate Software Inc., or CSI, after helping to finance a $93 million buyout of the firm. CSI, which catered to technology companies like Microsoft, provided a range of services including outsourcing of customer support. Initially, CSI employed U.S. workers to provide these services but by the mid-1990s was setting up call centers outside the country.
Two years after Bain invested in the firm, CSI merged with another enterprise to form a new company called Stream International Inc. Stream immediately became active in the growing field of overseas calls centers. Bain was initially a minority shareholder in Stream and was active in running the company, providing “general executive and management services,” according to SEC filings.
By 1997, Stream was running three tech-support call centers in Europe and was part of a call center joint venture in Japan, an SEC filing shows. “The Company believes that the trend toward outsourcing technical support occurring in the U.S. is also occurring in international markets,” the SEC filing said.
Stream continued to expand its overseas call centers. And Bain’s role also grew with time. It ultimately became the majority shareholder in Stream in 1999 several months after Romney left Bain to run the Salt Lake City Olympics.
Bain sold its stake in Stream in 2001, after the company further expanded its call center operations across Europe and Asia.
The corporate merger that created Stream also gave birth to another, related business known as Modus Media Inc., which specialized in helping companies outsource their manufacturing. Modus Media was a subsidiary of Stream that became an independent company in early 1998. Bain was the largest shareholder, SEC filings show.
Modus Media grew rapidly. In December 1997, it announced it had contracted with Microsoft to produce software and training products at a center in Australia. Modus Media said it was already serving Microsoft from Asian locations in Singapore, South Korea, Japan and Taiwan and in Europe and the United States.
Two years later, Modus Media told the SEC it was performing outsource packaging and hardware assembly for IBM, Sun Microsystems, Hewlett-Packard Co. and Dell Computer Corp. The filing disclosed that Modus had operations on four continents, including Asian facilities in Singapore, Taiwan, China and South Korea, and European facilities in Ireland and France, and a center in Australia.
“Technology companies, in particular, have increasingly sought to outsource the business processes involved in their supply chains,” the filing said. “. . . We offer a range of services that provide our clients with a one-stop shop for their outsource requirements.”
According to a news release issued by Modus Media in 1997, its expansion of outsourcing services took place in close consultation with Bain. Terry Leahy, Modus’s chairman and chief executive, was quoted in the release as saying he would be “working closely with Bain on strategic expansion.” At the time, three Bain directors sat on the corporate board of Modus.
The global expansion that began while Romney was at Bain continued after he left. In 2000, the firm announced it was opening a new facility in Guadalajara, Mexico, and expanding in China, Malaysia, Taiwan and South Korea.
In addition to taking an interest in companies that specialized in outsourcing services, Bain also invested in firms that moved or expanded their own operations outside of the United States.
One of those was a California bicycle manufacturer called GT Bicycle Inc. that Bain bought in 1993. The growing company relied on Asian labor, according to SEC filings. Two years later, with the company continuing to expand, Bain helped take it public. In 1998, when Bain owned 22 percent of GT’s stock and had three members on the board, the bicycle maker was sold to Schwinn, which had also moved much of its manufacturing offshore as part of a wider trend in the bicycle industry of turning to Chinese labor.
Another Bain investment was electronics manufacturer SMTC Corp. In June 1998, during Romney’s last year at Bain, his private equity firm acquired a Colorado manufacturer that specialized in the assembly of printed circuit boards. That was one of several preliminary steps in 1998 that would culminate in a corporate merger a year later, five months after Romney left Bain. In July 1999, the Colorado firm acquired SMTC Corp., SEC filings show. Bain became the largest shareholder of SMTC and held three seats on its corporate board. Within a year of Bain taking over, SMTC told the SEC it was expanding production in Ireland and Mexico.
In its prospectus that year, SMTC explained that it was in a strong position to meet the swelling demand from other manufacturers for overseas production of circuit boards. The company said that communications and networking companies “are dramatically increasing the amount of manufacturing they are outsourcing and we believe our technological capabilities and global manufacturing platform are well suited to capitalize on this opportunity.”
Just as Romney was ending his tenure at Bain, it reached the culmination of negotiations with Hyundai Electronics Industry of South Korea for the $550 million purchase of its U.S. subsidiary, Chippac, which manufactured, tested and packaged computer chips in Asia. The deal was announced a month after Romney left Bain. Reports filed with the SEC in late 1999 showed that Chippac had plants in South Korea and China and was responsible for marketing and supplying the company’s Asian-made computer chips. An overwhelming majority of Chippac’s customers were U.S. firms, including Intel, IBM and Lucent Technologies.
A filing with the SEC revealed the promise that Chippac offered investors. “Historically, semiconductor companies primarily manufactured semiconductors in their own facilities,” the filing said. “Today, most major semiconductor manufacturers use independent packaging and test service providers for at least a portion of their . . . needs. We expect this outsourcing trend to continue.”
Research editor Alice Crites contributed to this article.
Posted in 2012, 2012 campaign, 2012 Election, Barack Obama, Economy, Jobs, Mitt Romney, Obama, Obama 2012, President Barack Obama, President Obama, Rick Scott, tagged 2012, 2012 election, Barack Obama, Economy, Election 2012, Elections 2012, Florida Governor Rick Scott, Job Gains, Jobs, Mitt Romney, Politics News, President Barack Obama, President Obama, Republicans, Rick Scott on June 21, 2012| Leave a Comment »
By Michael C. Bender – Jun 21, 2012 1:46 PM MT
Mitt Romney’s presidential campaign asked Florida Governor Rick Scott to tone down his statements heralding improvements in the state’s economy because they clash with the presumptive Republican nominee’s message that the nation is suffering under President Barack Obama, according to two people familiar with the matter.
Scott, a Republican, was asked to say that the state’s jobless rate could improve faster under a Romney presidency, according to the people, who asked not to be named.
What’s unfolding in Florida highlights a dilemma for the Romney campaign: how to allow Republican governors to take credit for economic improvements in their states while faulting Obama’s stewardship of the national economy. Republican governors in Ohio, Virginia, Michigan and Wisconsin also have highlighted improving economies.
Scott should follow the advice of the Romney campaign and it won’t undermine his own message, said Mac Stipanovich, a political strategist and lobbyist in Florida.
“This is one of those situations where you could have it both ways and there’s enough truth in it that it would resonate,” Stipanovich said. “It would be better if everybody was singing from the same hymnal.”