Bain & Co, the financial consultants once led by presidential hopeful Mitt Romney, has charged the Irish taxpayer $37 million euros in fees for its work on the Irish Bank Resolution Corporation (IBRC) to date.
The Irish government took control of IBRC (then the failing Anglo Irish Bank) in 2009. As part of Ireland's restructuring plan, it is winding down IBRC. Bain, which has also advised the British government, has been working with IBRC since the end of 2009.
Romney's former company has amassed huge fees whilst suggesting how to restructure the IBRC to maximise how to return cash to the taxpayer.
According to the Irish Independent Bain was also involved in the bank's original plan to split into an 'old' and 'new' bank, the better to marshal its assets, but that plan was vetoed by the European Commission, which opted to instead close down the entire bank.
IBRC does not share how much it pays to consultants and advisors which also reportedly include KPMG, PwC, McCann Fitzgerald, Freshfields, JP Morgan and others.
In March the former bank announced it had incurred exceptional costs of $102 million which included professional fees associated with restructuring, asset sales and legacy matters.
Romney started his business career with Bain & Co in 1977. In 1985 he moved on to work with Bain Capital, its sister private equity firm that manages $60 billion in assets, before returning to the consultancy in the early 1990's as interim chief executive.
Romney led the financial restructuring of the consultancy which resulted in it becoming a separate business. He then returned to Bain Capital.
The main objective of private equity is to reward investors.
17 Comments
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Switch to the desktop site to post a comment.Maggie47 | Jun 15, 2012, 11:18 AM EDT
Let's hear a little bit about what President Obama has done for the economy
hollabackgurl | Jun 13, 2012, 02:22 PM EDT
Romney represents Wall Street going after the government when they were the only thing that saved us from Wall Street.
peterson | Jun 13, 2012, 02:06 PM EDT
Another political dirty dig or a slow news day or both.
BrianO | Jun 13, 2012, 09:53 AM EDT
Hollaback, you say profit like it's a bad word, without profit there would be no money to confiscate ie tax.
hollabackgurl | Jun 13, 2012, 09:23 AM EDT
I'm sure Romney has invested all his profits from the Irish deal into his Swiss bank accounts.
IrelandNorth | Jun 13, 2012, 05:42 AM EDT
The provate banking sector jealously guard their financial autonomy from Goverment interference, whether in Ireland, UK or US. Then when they get in over their head, they come screaming for the same Governments to bail them out of their corporate loan sharking and investment gambling.
torbreezy | Jun 12, 2012, 06:33 PM EDT
This piece is nothing more than an all-too-gratuitous back-hand @ man (and his former firm) who got on and got honor by doing right for his clients who probably failed to follow the advice rendered . . .
Stiofain | Jun 12, 2012, 02:07 PM EDT
MikeRock: Romney still collects money from Bain. He is still well ivested.
Nicomax | Jun 12, 2012, 01:27 PM EDT
Bain Capital has been the bane of existence for many of their clients.
Maggie47 | Jun 12, 2012, 11:47 AM EDT
they should have hired Bain to run their banks.
Maggie47 | Jun 12, 2012, 11:40 AM EDT
Bain is going strong and the Irish banks are broke!
FastEddy | Jun 12, 2012, 11:25 AM EDT
Well, you all are gonna have to pay the two dollars ... This is not the only case where Irish g'ment managed banks will have to pony up for fees extracted because of mis-management by g'ment. Note that Allied did not get saddled with these charges, being relatively independent of Irish g'ment management.
greensod | Jun 12, 2012, 11:01 AM EDT
I hope the Irish tax payer gets a big lift from the new elevator Romney is putting in his Garage,they paid for it.
MikeRock | Jun 12, 2012, 10:53 AM EDT
What's your point, Antoinette? Romney left Bain 27 years ago.
BrianO | Jun 12, 2012, 10:45 AM EDT
First off Was Bains work helpful, second what is the link to Romney, Former means in the past and this story is about the present.
pilib04 | Jun 12, 2012, 10:43 AM EDT
So it this Romney's "Irish connection." I stick with Offaly's favorite son, go raibh maith agat. Is feidir linn!
mreinhar2001 | Jun 12, 2012, 09:58 AM EDT
Sounds like Romney knows how to earn a buck, which is something America needs. If the fees are such a problem to generate an article, then either the contact never should have been signed in the first place or authorities whould consider trying to establish a new contract. This really is not news-worthy, except as a political campign ad.