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Public unions so opposed to private equity firms like Bain they invest billions there


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mitt-romney-bain-seiu-pension-funds.htmInvestors Business Daily:

Private equity firms, such as the one Gov. Mitt Romney helped found and run, have become controversial assault weapons in the Republican presidential campaign. They may come up again in tonight's final Florida primary debate.

 

 

The late campaigner Rick Perry called them "vulture capitalists" and Newt Gingrich has emphasized the less successful side of their investments such as layoffs and bankruptcies, implying the heartlessness of Romney.

 

As surrogates for President Obama's campaign anticipating Romney's nomination, some public sector unions have also already attacked the former governor and his former firm, Bain & Co. The Service Employees International Union recently criticized that firm's long record of "putting profits above workers," if you can imagine such a thing in America.

 

 

But here's a major catch, as Michael Corkery points out in today's Wall Street Journal. Those same public sector unions think so little of private equity firms that they've been moving billions of their precious pension fund dollars into investments in just those companies.

 

The reason: it seems they're fairly successful at producing something called profits, which are evil when they go to business and swell if they flow into union pension funds.

 

 

Early last fall about $220 billion in public employee pension money was invested in private equity companies. That's 11% of their assets, up from 3% just ten years ago.

 

In the year leading up to last September those union investments in private equity grew by almost $1 billion per week.

Other than that though these private equity firms like Bain are to be roundly condemned and denounced, at least while Romney is around.Scissors-32x32.png

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