webodec3ARCHIVEPreview
Open in TheBrain

Bain Capital

---

no lnx 11 24

alternet-

The end of left-leaning news?

'Maximum chaos and upset': Rachel Maddow describes nightmare election scenario

Thom Hartmann

November 23, 2024

Have you heard that Comcast is planning to sell MSNBC? Is Rupert Murdoch planning to buy it? Will America’s media landscape soon resemble those of Hungary and Russia?

Without the rightwing media juggernaut, Donald Trump probably wouldn’t be president next year and wouldn’t have won in 2016. That said, the progressive media landscape looks like it might be about to get a whole lot worse.

Comcast, which owns NBC and its subsidiaries CNBC and MSNBC (among other media outlets) announced this week that they’ll be spinning off MSNBC (among others) next year.

And the consequences are already showing up. It was reported this week that Rachel Maddow just took a substantial annual pay-cut because of the uncertain future of the network.

In part, this probably reflects a belt-tightening at Comcast, but is also an indication of how legacy media — which now includes cable properties — are taking a hit from newer digital media, from social media to podcasts to web-based networks and programs.

The principal analyst and VP of content for the market research company eMarketer, Paul Verna, told the AP that:

“The writing is on the wall that the cable TV business is a dwindling business,” and, the AP noted, is “predicting future consolidation of the networks or acquisitions through private equity.”

Private equity (like Bain Capital) and large media operation acquisitions have a long history of gutting media properties to increase their profitability; often this includes what a study by Stanford University researchers described as a trend to “substitute coverage of local politics for coverage of national politics, and use more conservative framing.”

Air America radio (for which I wrote the original business plan and which carried my program) was on the air in virtually every major market in the United States, having leased over 50 major, high-powered radio stations from Clear Channel.

My program regularly beat Rush Limbaugh in the ratings: When I was invited to the Obama White House following that election, one person associated with the campaign noted to me privately that they believed Air America had played a meaningful role in Obama’s 2008 election.

That same year, Mitt Romney’s private equity company, Bain Capital, acquired Clear Channel and, in 2009, began reclaiming their stations, replacing Air America content with mostly sports. By coincidence, around that same time it appears Romney decided he’d run against Obama in the next election.

As Air America lost station after station, its ability to earn revenue through selling advertising collapsed. By 2010, the entire network was bankrupt just in time for Romney to run for president.

Will the same thing happen to MSNBC? Stay tuned.

Similarly, Republicans in Congress are salivating over Elon Musk’s rhetorical war with NPR after the network stopped using Xitter when Musk labeled the news network as “state-affiliated” media.

As the headline on Fox Business notes:

“Elon Musk renews calls to defund NPR after clip of CEO resurfaces on X: 'Your tax dollars' are paying for this.’”

Musk, of course, will be in charge of identifying those parts of government or institutions funded by government which can be cut to help pay for Trump’s planned $4 trillion in tax cuts for billionaires.

While it won’t fit her proposed new role as UN Ambassador, Congresswoman Elise Stefanik, a top member of Republican House leadership, was unambiguous, posting to Xitter: “I will DEFUND NPR.”

This is nothing new: Republicans in the House voted this past July to remove all federal funding for NPR by 2026; Musk and Ramaswamy, working hand-in-glove with Marjorie Taylor Greene (who was just made chairperson of the new subcommittee charged with implementing their recommendations) could probably speed up that timeline.

While NPR goes to great lengths to avoid political bias in their news (the Corporation for Public Broadcasting even hired last month, “in response to right-wing criticism,” multiple editors specifically to spot and stamp out any progressive perspectives that may creep into their reporting), if they were crippled, it’s safe to assume the roughly 1,500 rightwing hate radio stations in the country stand more than ready and willing to pick up their radio audience.

Rightwing billionaires brought us Fox “News,” Sinclair, two other web- and cable-based rightwing TV channels, nationwide networks of hate radio (now also in Spanish), tens of millions of dollars in subsidies to rightwing podcast hosts, and the destruction of about half the nation’s local newspapers.

Not to mention an entire network of billionaire-funded hard-right phony “pink slime” newspapers that pop up around the country every election year.

There’s no equivalent politically-tilted media systems on the left; Democratic-leaning billionaires have stayed out of the media space ever since Romney’s company took down Air America.

The closest TV and radio counterparts we have are Free Speech TV (available on the web, Dish, Sling, Roku, AppleTV, and DirecTV) and the Progress Channel on SiriusXM (my daily program is carried on both).

In the print media space, Substack is growing (although they also carry hard-right content) and provides a solid community of progressive publications (like HartmannReport.com), but that’s a drop in a much larger ocean; even The Washington Post and The New York Times don’t come close to the strength of editorial bias found in the Murdoch family’s The New York Post or The Wall Street Journal.

Publications like The New Republic, Mother Jones, The Nation, and The Guardian provide solid progressive content, but all have funding bases that are trivial compared to conservative publications supported by rightwing billionaire networks. Ditto for websites like Raw Story, Common Dreams, Alternet, LA Progressive, Democratic Underground, and Daily Kos.

As my old friend and the former CEO/founder of Air America, Jon Sinton, noted on his excellent “reluctant” Substack newsletter:

“The left-wing silo is barren. A couple of old line newspapers and magazines. MSNBC and a handful of smallish digital platforms and shows. Pod Save America stands nearly alone as a left-leaning podcast with a large audience.

“By contrast, the right-wing silo is vast and deep. It houses YouTubians, TikTokkers, broadcasters on Fox, Newsmax, Sinclair TV stations, and talk radio stations; posters on social media; and narrowcasters on myriad podcasts.”

All, I would add, heavily supported by rightwing billionaires. As Politico reported in 2014, the Heritage Foundation used to give $1 million a year to Sean Hannity and $2 million a year to Rush Limbaugh alone.

A close acquaintance who was, for years, a mid-level rightwing talk show host told me how a dozen or more times a year he’d give a speech at a random high school and would receive a check for $20,000-$30,000 by a rightwing foundation as a “speaking fee” each time. It was their way of supporting conservative talk radio.

Again, there is literally nothing like that on the left. Not even close.

I’ve repeatedly called for progressive billionaires to jump into the media space, and perhaps the Musk/Trump assaults that are coming will provoke some to act. It may be wishful thinking, but if it does happen it can’t come too soon.

In the meantime, we all must support (and share with our friends) those outlets where we find useful news and information; if we fail to, America’s media landscape may soon mirror Hungary’s and Russia’s with every station and publication praising Dear Leader 24/7/365.

NOW READ: The America-attacking Trump is coming for our military — and then he's coming for us

---

Civil society groups protest the sale of .ORG to a private equity fund and a collection of Republican billionaires

11/19

Earlier this month, management of the .org top-level domain underwent a radical shift: first, ICANN dropped price-caps on .org domains, and then the Internet Societ (ISOC) flogged the registry off to Ethos Capital, a private equity fund, and a consortium of three families of Republican billionaires: the Perots, the Romneys, and the Johnsons. Read the rest

==

Controversial Billboards

On Monday, October 29th, 2012 the progressive organization One Wisconsin Now and news source 'theGrio' exposed the Einhorn Family Foundation as being behind a series of controversial political billboard advertisements. The billboards featured threatening messages about voter fraud stating that "Voter Fraud is a Felony! 3 1/2 years & 10,000 dollar fine." [3] The billboards where placed in largely Black and Hispanic neighborhoods throughout the cities of Milwaukee, Cleveland, and Columbus, Ohio. The billboards first appeared in the 2010 election, and resurfaced in September of 2012. During the time period in between, Wisconsin attempted to pass a strict ALEC-inspired voter ID law in May 2011 that threatened to disenfranchise thousands of African Americans, Hispanics, the elderly and students. Civil Rights Groups, fearing that confusion over the status of the law would deter minority voters from the polls, criticized the ads and placed pressure on Bain Capital owned Clear Channel to take the advertisements down. [4] Clear Channel took down the advertisements, officials from Clear Channel explained that the billboards violated the company's policy of displaying anonymous political ads. When Clear Channel requested that the Einhorn Family Foundation identify themselves on the advertisements, the Einhorn family then chose to have the advertisements taken down. [5]

For a detailed map of where these advertisements were located in the Milwaukee Metropolitan Area, click here.

 ---

early days:  ...

Most accounts of Bain characterize the firm as full of hard-working young men who sought to find troubled companies, invest in them and turn them around. Romney's presidential campaign website says that "under his leadership, Bain Capital helped to launch or rebuild over one hundred companies." Romney campaigns have embraced his reputation as a turnaround artist, as he has run on his private equity record and his overhaul of the 2002 Salt Lake City Olympics. He even titled his 2004 book "Turnaround," a memoir and account of the 2002 Salt Lake City Olympics.

But as the disputes illuminate, the reality of Bain's business in the early years is more complicated.

Often, Bain wasn't finding companies on its own. Finders and middlemen were more common in the early days of private equity than they are now. Smaller firms would seek out acquisition targets and bring them to the big buyout firms.

More significantly, Romney's firm wasn't always looking for startups or troubled companies that it could turn around.

Private equity companies conduct a variety of transactions other than buying startups with growth potential or troubled firms ripe for a turnaround. Some seek out family-run operations under the theory that those typically have a lot of fat to cut. Some like "roll-ups," buying up a bunch of small operations in one industry and combining them into a powerhouse with economies of scale. Firms buy divisions of large corporations that are trying to streamline their operations. Some acquisitions fit more than one of these descriptions. The constant is debt, and plenty of it. Private equity firms use such borrowed money to maximize their gains.

The Romney campaign says Bain did various types of deals. And it celebrates that Bain helped launch or rebuild some American corporate stalwarts, like Staples, Bright Horizons and Sports Authority.

Yet in addition, under Romney's tenure, Bain often sought out solid businesses that didn't need to be turned around. The reason: Such companies could operate under the burden of the enormous debt that Bain would layer on them.

"They always told us day one: They wanted profitable companies that are doing OK, and they pay what they needed to pay," says Phillip Roman, who heads up an eponymous mergers and acquisitions firm that was involved in a legal dispute with Bain in the 1990s similar to McCall Springer's. "There are companies that like turnarounds," referring to other private equity firms. "That's another business" from the one Bain was in.

Bain in the 1990s was "doing more [of] the usual leveraged buyout: Buy with a lot of debt, try to increase earnings and sell as soon as possible," says Ludovic Phalippou, an expert on private equity at the University of Oxford in England. The firm was seeking "mature companies with high cash flow," he says, with sufficiently stable earnings "to be able to leverage a lot."....http://www.propublica.org/article/finders-weepers-early-bain-disputes-cast-new-light-on-its-business

Paul & Sandra Edgerley Brookline, Mass.

Paul B. Edgerley, 55, is managing director of Boston-based Bain Capital, the private equity firm co-founded by Mitt Romney, where he has worked since 1988. Sandra Edgerley formerly worked at Bain & Co. The couple have been contributing to Romney and PACs backing him since 2004, according to the Center for Public Integrity.

Contributions

With the sting of defeat in the South Carolina primary still fresh at last week's Republican presidential debate in Tampa, Mitt Romney slammed Newt Gingrich for his record as a consultant—or "historian," in Newt-speak—for government mortgage-backer Freddie Mac.

But perhaps Romney should think twice before setting his sights on the former speaker's lobbying-related past. That's because the ex-governor has benefited handsomely from the influence-peddling of Bain Capital, the private equity firm he cofounded in 1983. Though he's been gone from Bain for over a decade, Romney continues to rake in millions from accounts with the firm—and in 2007, he took Bain's side in a key lobbying battle with Washington—one that saved him millions of dollars.

2007, as it turns out, was something of a watershed for private equity lobbying: In that year, lobbying expenditures for the industry practically tripled. The spike was the result of an industry-wide effort to preserve a number of tax giveaways for the finance industry and its CEOs—including the carried interest rule, a tax loophole that allows Romney and other private equity mavens to reduce their taxes by millions of dollars. Carried interest refers to the commission that private equity and hedge fund executives receive for managing investors' money. Although commissions may seem like ordinary income to the rest of us, the carried interest loophole allows some money managers to claim this income as long-term capital gains, which are taxed at a rate much lower (15 percent) than the top tax rate for normal income (35 percent).

After Democrats won control of both the House and the Senate in the 2006 midterm elections, they advanced several pieces of legislation that threatened to end this lucrative quirk of the tax code and other tax policies that favor the rich. Mitt Romney, who made just over $20 million in investment income in 2010, wasn't having any of it. During an August 2007 appearance on Kudlow & Company, Romney was asked what he thought of the effort to close the loophole. He wasn't happy. "I want people to be able to save their money and invest in America's economy tax-free," Romney said. "I want to lower taxes. I want to lower marginal rates across the board. I want to lower taxes for corporations," he told Kudlow.

Bain was doing its part to make Romney's vision a reality. The firm spent $300,000 between August of 2007 and April of 2008 lobbying the House and Senate on bills that threatened the carried interest loophole. Along with other private equity titans like Kohlberg Kravis Roberts and Apollo Management, Bain and its ilk paid lobbying shops, public relations firms, and trade groups like Ogilvy and the Private Equity Growth Capital Council an estimated $15 million between January 2009 and April 2010 to convince lawmakers to keep the loophole alive. The force of those combined lobbying efforts kept the carried interest loophole wedged open, denying the federal government some $10 billion in revenues in the process. "Everyone who has looked at this boondoggle [of carried interest] thinks it's an egregious giveaway," Jacob Hacker, the co-author (with Paul Pierson) of Winner-Take-All Politics, says. "It still lives because of the lobbying of the industry, and in particular the PEGCC."

From 1998 to 2006, private equity and investment firms spent $3 million a year lobbying Congress, according to the Center for Responsive Politics. Bain got into the game in 2007, registering with prominent Washington lobbying firms Public Strategies, Inc. and Akin Gump Strauss Hauer & Feld. To date, Bain has paid some $3 million to these firms to make sure corporate taxes stay low and CEOs remain fat and happy.

As the *New York Times*reported several weeks ago, Bain was a member of the Private Equity Growth Capital Council up until last year, when it abruptly ended its $1-million-a-year membership with the powerful trade group. Its reasons for doing so remain unclear. (PEGCC did not respond to a request for comment.)

Investment fund managers and former CEOs like Mitt Romney suggest that taxing their carried interest as income would crimp investments, and, ultimately, kill jobs. But as Howard Gleckman, a tax policy expert at the Urban Institute, has found, there is little evidence to support that claim. "Losing a couple percentage points off your returns isn't going to change things very much," Gleckman says. "Taxing carried interest as if it were wages…wouldn't really affect these deals very much."

Now that a small sample of Romney's tax returns is out in the open, voters may be asking more questions about how policies like the carried interest rule work. Josh Kosman, author of The Buyout of America: HowPrivate EquityIs Destroying Jobs and Killing the American Economy, says that's terrifying for the private equity world. "The private equity industry exists because of tax gimmicks," Kosman argues. "They want to convince people they create value because if anyone started looking at it, the tax rates don't make any sense, and they cost the government a lot of money."

As Hacker explains, today's favorable tax treatment towards capital gains dates back to the late 1970s, when the lobbying might of business groups like the US Chamber of Commerce successfully sliced the tax on capital gains in half. The Tax Reform Act of 1986 brought the rate back into line with the rate on ordinary income, but business lobbies spent the next decade knocking it back down. "For an industry that's held up as a paragon of individual entrepreneurship, private equity is strikingly dependent on favorable tax policies," Hacker said.

Of course, private equity isn't the exclusive terrain of one party or the other. As Hacker and Pierson outlined in their book, Sen. Charles Schumer (D-N.Y.) has been one of the carried interest loophole's most ardent defenders. And as Kosman points out, four of the past eight Treasury secretaries have direct ties to the private equity industry.

All of this, of course, could pose a huge a problem for Romney—so much so that his campaign recently suggested that he might be open to reconsidering the carried interest loophole if he were to be elected president. Although Bain did not start lobbying until some eight years after Romney left, his just-released tax records indicate that he still collects significant investment income from the firm. Bain's gain, then, has clearly been Romney's as well—and the candidate has publicly endorsed the same policies the company has backed. 

So when Bain's lobbyists have tried to sway the political system in Washington, Romney has gained. Maybe he ought to be careful when denigrating the influence peddlers in the nation's capital.

http://motherjones.com/politics/2012/01/bain-lobbying-saved-mitt-romney-millions

Starting on last night’s Ed Show with Ed Schultz, MSNBC anchors are now disclosing their parent company’s ties to Bain Capital, the buyout firm co-founded by Mitt Romney.

In July 2008, NBC Universal, Bain Capital and Blackstone Group bought the Weather Channel for an estimated $3.5 billion – a business relationship that MSNBC anchors have not disclosed until now, according to a search of the Nexis and TVEyes databases going back to 2008.

We’ve reached out to MSNBC to ask why anchors only started disclosing the connection now, but have yet to hear back. But the connection certainly doesn't seem to be providing Romney with much favorable coverage:

“Mitt Romneys history at Bain Capital is not going to help his image as a job creator,” Schultz said on last night’s show. “Now, we want to disclose that NBC Universal and Bain Capital are each a part owner of the Weather Channel. Bain Capitals main business model is buying companies like American Pad and Paper and restructuring them. In many instances, Bain turned a profit by strip-mining these companies. American -- AMPAD is what it`s known. The stock was driven down and the company went bankrupt. They fired hundreds of workers along the way.”

Bain Capital is a private equity and venture capital firm founded by Mitt Romney in 1984. It has holdings in Domino's Pizza, pharmaceutical group Warner Chilcott, Toys "R" Us, sportswear distributor Broder Bros., and SunGard Data Systems. Bain Capital, along with Thomas H. Lee Partners, made a nearly $20 billion offer for broadcasting giant Clear Channel, and with another group purchased for $33 billion HCA, the largest for-profit hospital chain in the U.S. [1] [2]

Contents[hide]

Lobbying

Bain Capital spent $100,000 for lobbying in the first half of 2007. The lobbying firm Public Strategies was used. [3]

Personnel

Selected Managing Directors: [4]

Criticism

Contact details

111 Huntington Avenue

Boston, MA 02199

Phone: 617-516-2000

Fax: 617-516-2010

Web: http://www.baincapital.com

Resources and articles

Related Sourcewatch

References

  1. ↑ Bain Capital Profile, Hoovers, accessed September 2007.
  2. ↑ Mitt Romney Biography, Washington Post, accessed September 2007.
  3. ↑ Bain Capital lobbying expenses, Open Secrets.
  4. ↑ Managing Directors, Bain Capital, accessed September 2007.

References

Categories: Corporations | United States

In 1983, Bill Bain asked Mitt Romney to launch Bain Capital, a private equity offshoot of the successful consulting firm Bain & Company. After some initial reluctance, Romney agreed. The new job came with a stipulation: Romney couldn't raise money from any current clients, Bain said, because if the private equity venture failed, he didn't want it taking the consulting firm down with it.

When Romney struggled to raise funds from other traditional sources, he and his partners started thinking outside the box. Bain executive Harry Strachan suggested that Romney meet with a group of Central American oligarchs who were looking for new investment vehicles as turmoil engulfed their region.

Romney was worried that the oligarchs might be tied to "illegal drug money, right-wing death squads, or left-wing terrorism," Strachan later told a Boston Globe reporter, as quoted in the 2012 book "The Real Romney." But, pressed for capital, Romney pushed his concerns aside and flew to Miami in mid-1984 to meet with the Salvadorans at a local bank.

It was a lucrative trip. The Central Americans provided roughly $9 million -- 40 percent -- of Bain Capital's initial outside funding, the Los Angeles Times reported recently. And they became valued clients.

"Over the years, these Latin American friends have loyally rolled over investments in succeeding funds, actively participated in Bain Capital's May investor meetings, and are still today one of the largest investor groups in Bain Capital," Strachan wrote in his memoir in 2008. Strachan declined to be interviewed for this story.

When Romney launched another venture that needed funding -- his first presidential campaign -- he returned to Miami.

"I owe a great deal to Americans of Latin American descent," he said at a dinner in Miami in 2007. "When I was starting my business, I came to Miami to find partners that would believe in me and that would finance my enterprise. My partners were Ricardo Poma, Miguel Dueñas, Pancho Soler, Frank Kardonski, and Diego Ribadeneira."

Romney could also have thanked investors from two other wealthy and powerful Central American clans -- the de Sola and Salaverria families, who the Los Angeles Times and Boston Globe have reported were founding investors in Bain Capital.

While they were on the lookout for investments in the United States, members of some of theseprominent families -- including the Salaverria, Poma, de Sola and Dueñas clans -- were also at the time financing, either directly or through political parties, death squads in El Salvador. The ruling classes were deploying the death squads to beat back left-wing guerrillas and reformers during El Salvador's civil war.

The death squads committed atrocities on such a mass scale for so small a country that their killing spree sparked international condemnation. From 1979 to 1992, some 75,000 people were killed in the Salvadoran civil war, according to the United Nations. In 1982, two years before Romney began raising money from the oligarchs, El Salvador's independent Human Rights Commission reported that, of the 35,000 civilians killed, "most" died at the hands of death squads. A United Nations truth commission concluded in 1993 that 85 percent of the acts of violence were perpetrated by the right, while the left-wing Farabundo Martí National Liberation Front, which was supported by the Cuban government, was responsible for 5 percent.

When The Huffington Post asked the Romney campaign about Bain Capital accepting funds from families tied to death squads, a spokeswoman forwarded a 1999 Salt Lake Tribune article to explain the campaign's position on the matter. She declined to comment further.

"Romney confirms Bain had investors in El Salvador. But, as was Bain's policy with any big investor, they had the families checked out as diligently as possible," the Tribune wrote. "They uncovered no unsavory links to drugs or other criminal activity."

Nobody with a basic understanding of the region's history could believe that assertion.

By 1984, the media had thoroughly exposed connections between the death squads and the Salvadoran oligarchy, including the families that invested with Romney. The sitting U.S. ambassador to El Salvador charged that several families, including at least one that invested with Bain, were living in Miami and directly funding death squads.Even by 1981, El Salvador's elite, largely relocated to Miami, were so angered by the public perception that they were financing death squads that they reached out to the media to make their case. The two men put forward to represent the oligarchs were both from families that would invest in Bain three years later. The most cursory review of their backgrounds would have turned up the ties.

The connection between the families involved with Bain's founding and those who financed death squads was made by the Boston Globe in 1994 and the Salt Lake Tribune in 1999. This election cycle, Salon first raised the issue in January, and the Los Angeles Times filled out more of the record earlier this month.

There is no shortage of unsavory links. Even the Tribune article referred to by the Romney campaign reports that "about $6.5 million of $37 million that established the company came from wealthy El Salvadoran families linked to right-wing death squads."

The Salaverria family, whose fortune came from producing cotton and coffee, had deep connections to the right-wing Nationalist Republican Alliance (ARENA), a political party that death-squad leader Roberto D'Aubuisson founded in the fall of 1981. The year before, El Salvador's government had pushed through land reforms and nationalized the coffee trade, moves that threatened a ruling class whose financial and political dominance was built in large part on growing coffee. ARENA controlled and directed death squads during its early years.

On March 24, 1980, Oscar Romero, the archbishop of San Salvador and an advocate of the poor, was celebrating Mass at a chapel in a small hospital when he was assassinated on D'Aubuisson's orders, according to a person involved in the murder who later came forward.

The day before, Romero, an immensely popular figure, had called on the country's soldiers to refuse the government's orders to attack fellow Salvadorans.

"Before another killing order is given," he advised in his sermon, "the law of God must prevail: Thou shalt not kill."

In 1984, Robert White, the former U.S. ambassador to El Salvador, named two Salaverria brothers -- Julio and Juan Ricardo -- as two of six Salvadoran exiles in Miami who had directly funded death squads, repeating in sworn congressional testimony a claim he'd made earlier as ambassador. The group became known as the "Miami Six." White testified that a source close to the Miami Six had notified the U.S. embassy of their activities in January 1981.

White was pushed out of his job by the incoming Reagan administration in 1981; he was considered insufficiently supportive of the Salvadoran ruling class. (D'Aubuisson endorsed Ronald Reagan in 1984.) When contacted by phone recently, White reiterated his claim about the Salaverria brothers, but said he couldn't reveal his source's identity in order to protect the source.

"The Salaverria family were very well-known as backers of D'Aubuisson," White told The Huffington Post. "These guys were big-money contributors. ... They were total backers of D'Aubuisson and the extremist solution, including death squads."

Alfonso Salaverria was a close associate of Orlando de Sola, a leading death-squad figure, and, like him, supported D'Aubuisson.

The Salaverria family also violently resisted land reform efforts. When the Salvadoran government seized about 140 of the country's largest farms in March 1980, 73-year-old Raul Salaverria was the only landowner to openly resist, the Washington Post reported at the time. A brief exchange of gunfire between government forces and Salaverria's people resulted in two injuries, and 1,500 weapons were allegedly found on the property.

Eight years later, workers in an agrarian reform co-operative whose land once belonged to the Salaverrias barely escaped an assassination attempt. "Members of the co-op suspect the former owners, the Salaverria family, were behind the violence," a 1988 Human Rights Watch report said. The family denied involvement.

Francisco de Sola and his cousin, Herbert Arturo de Sola, also invested early in Bain, according to the Los Angeles Times. Two other members of the de Sola family were "limited partners," according to the Boston Globe, but the Romney campaign declined to provide The Huffington Post with their names. The de Sola family was one of El Salvador's most powerful coffee growers and a financier of the ARENA party.

Herbert's brother was the notorious Orlando de Sola, who resisted the peace negotiations toward the end of the civil war. The Romney campaign acknowledges Orlando de Sola's connection to death squads but insists he is not representative of the de Sola family investors. While Romney told the Tribune in 1999 that the backgrounds of the families had been checked diligently, he had explained to the Boston Globe in 1994 that Bain's due diligence included only the backgrounds of the individual investors, not their family members. "We investigated the individuals' integrity and looked for any obvious signs of illegal activity and problems in their background, and found none. We did not investigate in-laws and relatives." Deflecting the association with Orlando, Strachan, whom Romney had charged with vetting the investors, described him that same year to the Globe as "the black sheep of the family. ... He was kicked out of the family business."

Yet there is strong evidence that Orlando was anything but a black sheep in the de Sola family. Indeed, he was a leading public face of the Salvadoran elites in Miami, speaking, for example, on behalf of the El Salvador Freedom Foundation, the organization which arranged a U.S. press conference for D'Aubuisson as part of its public relations activities on behalf of the oligarchs and ARENA. An Associated Press story from April 1981 includes Orlando de Sola and Alfonso Salaverria speaking on behalf of the oligarchs in exile. The story also makes reference to White's charges regarding the funding of death squads, indicating that the charges were already well known by that point.

But the ties run deeper still. In 1990, Orlando de Sola, D'Aubuisson and founding Bain investor Francisco de Sola allegedly assassinated two left-wing activists then in Guatemala, according to a report by that country's government, which cited its intelligence sources. The activists had just held a meeting with then-Sen. Chris Dodd (D-Conn.), who was attempting to broker a Salvadoran peace deal.

Francisco de Sola later pleaded his and his cousin Orlando's innocence to the U.S. ambassador. The Inter-American Commission on Human Rights looked further into the killings and concluded that elements of the Salvadoran right were indeed the mostly likely assassins, but said that it couldn't confirm the guilt of the de Solas or D'Aubuisson. It deemed the investigation incomplete and called for a deeper look. The three men were never charged.

Francisco de Sola is now president of the Salvadoran Foundation for Economic and Social Development. His assistant, Ada Chang, said that he was traveling and unavailable to comment, but she confirmed to HuffPost that he had been accused of murdering the two leftists in 1990. Whether he committed the crime or not, the fact that Guatemalan intelligence would associate him with Orlando de Sola and D'Aubuisson, and place them in Guatemala together, casts further doubt on Strachan's claim that Orlando de Sola was merely a "black sheep" who had been "kicked out of the family business."

UPDATE: Oct. 24 -- Francisco de Sola told The Huffington Post that his cousin Orlando was very much a "black sheep" and that D'Aubuisson spoke out against other members of the de Sola family for supporting dialogue as a way to resolve the conflict. Indeed, there is no evidence that Francisco de Sola himself financed death squads nor that he financed ARENA prior to 1988; he did so afterward in support of a more moderate direction for the party. The Inter-American Commission on Human Rights, which reviewed the Guatemalan government report that linked D'Aubuisson, Orlando de Sola and Francisco de Sola to the murder of the two left-wing activists, described the charges as "surprising and unsubstantiated."

Orlando de Sola, who is serving an unrelated prison sentence for fraud, told the Los Angeles Times that he did not personally benefit from the Bain investments. "I would say their relationship with Bain Capital was a step to diversify into foreign investments," he said of his family.

Ricardo Poma was the first investor Romney thanked when he traveled to Miami in 2007. The head of the Poma Group, he became one of the three members of the Bain Capital investment committee, according to Strachan's memoir. The Poma family were financiers of D'Aubuisson's ARENA party.

The Regalado-Dueñas family, like many of El Salvador's other powerful clans, amassed much of their wealth and political power through the coffee industry. Along with the Alvarez family, they also helped to found Banco Comercial, one of the biggest banks in El Salvador.

The Regalado-Dueñas and Alvarez families were leading supporters of ARENA. Arturo Dueñas "regularly supplied" the head of an ARENA-affiliated "paramilitary unit ... with a variety of official Salvadoran documents," according to a redacted 1984 CIA document, which uses the euphemism for death squad. (Salvadoran government documents were used by death squads to assemble lists of people to kill.)

Miguel Dueñasand Ricardo Poma did not respond to requests for comment. The Salaverria brothers are dead, according to Ambassador White.

Jeffery Paige, author of "Coffee and Power: Revolution and the Rise of Democracy in Central America" and a professor at the University of Michigan, has studied the political economy of Central American oligarchies. Romney's claim to have checked out the backgrounds of the families and come away satisfied befuddles Paige.

"These people benefited from one of the most exploitative and repressive agricultural systems in Latin America. That's why they had a revolution," Paige said. "This money, certainly there wasn't much concern where it came from and what these people had done to make that money."

Sergio Bendixen, who now does polling for President Barack Obama, spent a significant amount of time in El Salvador in the early '80s, doing political polling for Univision. He said that he met D'Aubuisson on many occasions and found him to be one of the warmest, most charming and charismatic people he has ever met. But he said D'Aubuisson was also very upfront about what he saw as the justifiable use of death squads.

"There were 10 or 30 bodies in the street every morning," Bendixen recalled of his time there. "D'Aubuisson said it was necessary. The message needed to be sent [that] if you were associated with the communists or socialists, you had to be killed. He said it was an instrument in keeping the violence down, because others would see the consequences."

Bendixen suggested that a cursory look would have shown Romney what those families were involved with. "If anybody tries to tell you there was a line, a Chinese wall, between ARENA and the death squads, that's just not the way it was," he said.

The Salvadoran elite in Miami talked openly at the time, he said, of supporting the death squads battling the rebels. It wasn't a source of shame, Bendixen recalled, but a source of pride. "They were proud of the fact that they were supporting their country against the communists," he said.

As Romney now seeks support from the Latino community in his campaign for president, his knowledge of Bain's all-too-few degrees of separation from Salvadoran death squads may become a topic of interest.

"Under Ronald Reagan, the U.S. sent billions of dollars to the murderous regime, which utilized that aid to fund the military and death squads in an effort to preserve the unjust privileges of the Salvadoran oligarchy," said Arturo J. Viscarra, an immigration lawyer, who, like many other Salvadorans, emigrated to the United States in order to escape the civil war. He said his family left the country in 1980 after his father began receiving death threats.

"To now learn that a man that may become president of the U.S. deserves some of his success due to the incredible inequality that the U.S. helped to preserve in El Salvador is ironic," Viscarra said. "It's morbidly funny.”

The U.S. involvement in the bloodshed is now seen as a black mark on the nation's record. When President Obama visited Central America in March 2011, he made a symbolic stop at Romero's grave, lighting a candle for the archbishop.

Romney, however, has shown no public remorse for signing up such investors, although the concept of culpability is not foreign to him. When he returned to Miami in 2007, he condemned those who had financed torture and other human rights abuses during the Salvadoran civil war -- just not those he was connected to.

"These friends didn't just help me; they taught me," Romney said. "Ricardo's brother had been tortured and murdered by rebel terrorists in El Salvador. Miguel [duena] himself had been chained to a floor in Guatemala for weeks and tortured. And their torturers were financed by Fidel Castro. I learned from these friends about the human cost when Castro has money."

http://www.huffingtonpost.com/2012/08/08/mitt-romney-death-squads-bain_n_1710133.html