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Biden blasts Romney's work at Bain Capital

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    Former GS Industries CEO Mark Essig on attack ad from Obama camp

  • Duration 6:36
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Believe you can help those at the very tough.

The rest are -- fend for themselves in America is gonna turn out all right.

Well folks you so what happened when this philosophy Brothers.

You saw.

Were brought you the last time this velocity resume play which is eight years before we took office.

I believe that my father believed that I.

President I think I could be -- to be widespread wildfires.

-- -- Give me a million.

Father dreamed as much -- any -- sky dreams.

-- who we are.

And -- understated seems to me.

Well that's vice president Joseph Biden on a factory floor the battleground state of Ohio.

Blasting governor Mitt Romney's work is a venture capitalists and repeating an attack and how Romney's former firm handle the steel company.

That fell into bankruptcy costing 750 jobs.

But critics are saying the president's reelection team is playing loose with the facts when it comes to that failed company GST steal.

Especially in a two minute attack -- the full version is six minutes but the two minute version is airing in key battleground states this week.

Joining me now is that company's former CEO.

Mark S -- -- thank you very much for being here so the ad released leaves nothing on the table when it comes to going after Mitt Romney and Bain.

And they say -- came in -- nearly nine -- to Europe former company.

Ravaged it engaged in the so called vulture capitalism a -- vampire.

Sucked all the money out of it.

More than doubled their own money and then left the company bankrupt.

Ten years later.

What say you.

Well -- -- you know I've heard this charge before it seems said every time mr.

Romney runs for office that this gets played up again.

That that's really gross distortion of the facts.

I joined the company in 1998.

I was hired by the board and Bain Capital to help turn around IG SI.

In GSI honesty GST steal.

But the facts are they -- Bain was involved in -- investment for.

Over eight years they pumps a 10025.

Million dollars of investment in there.

Ended their thesis was that they could turn around a plant that had been slated for closure.

End and -- actually almost pulled it off.

Until.

The late ninety's and early two thousands when we had a flood of cheap imported steel that really close the door on their -- They talk about how what happened was -- according to our information -- got twelve million dollars on -- eight million dollar initial 1993.

Investment.

Which is a four million dollar profit that it also got four point five million dollars in consulting fees so it gets a four million dollar profit.

Four point five million consulting fees and the company winds up bankrupt and the guys in this -- talk about how you know pensions were put at risk.

That that they they paint Bain.

Under Romney who was running -- for some of that time not all of it not when the company went bankrupt -- for some of it.

As just.

Not caring about that.

Profits of the workers -- that that that pensions of the workers the employment of the workers but really just there to suck out whatever money they could for themselves.

Well I'm not it assure -- of the facts around their original investment I wasn't there at the time I will say you know I -- -- long track record personally of turning -- metals industry companies.

Before GS IE and subsequently.

I've worked with a number of private equity firms and that no one wins one a company goes bankrupt.

The only way a private equity company -- can make a return on its investment if the company grows so.

It's it to think that this could be a strategy or a winning strategy for payments.

Is.

-- illogical.

I wolf say they acts we had strict direction from our board and from Bain Capital.

To do everything in our power to try to turn their plan around now.

The Kansas City plant was one of four plants inside -- GSI.

We were able -- turn around and make profitable.

Three of those plants.

Our fear was if we we didn't close -- Kansas City plant.

The rest of the plants might have close to and and the damage could have been a lot worse.

We don't.

I don't feel good about the fact that those folks loss of jobs in Kansas City.

We do take some solace in the fact that we were able to save the rest of the plans and -- plants are all thriving in an open and and prosperous.

What do you make of the oven Mitt Romney was still at being as of the time the your company went bankrupt this one this one plant.

But he was no longer running if -- doing the Olympics and so on but you still the guys signing you know the official papers.

How heavily involved was he to your recollection and what do you make of the attacks against him.

As far as your company what.

Well I I had.

No interaction.

With mr.

Romney we have a lot of attention from Bain Capital.

A lot of their partners -- -- other resources were applied to.

Trying to turn around this plant trying to save this company.

So I I can't speak to you know some of these things although I will say.

-- again in my long history of of running portfolio companies for private equity firms and I've.

I've worked for a number of private equity firms over the years.

The ethics.

The standards of professionalism.

Of Bain Capital.

Is the highest in the industry and I've always attributed -- Two.

Mitt Romney in any other co founders in managing directors -- -- They they have been the gold standard for ethics and professionalism.

-- right here and attack like they -- you know they're looking at.

One sliver of a large body of work that's that's -- Anyone's account.

A great track record sarcastic thank you so much for coming on today.

When you're welcome -- out of -- Thing.

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