|The New Yorker|
In a few weeks, this might be the Issue of the Election or the Story That Brought Romney Down. At this point, only time can tell.
Yesterday, the New York Times reported
that New York Attorney General Eric Schneiderman has begun to send out subpoenas to investigate the tax situations in numerous private equity companies situated in the Big Apple, including Bain Capital, Republican hopeful Mitt Romney's coup de grace and the subject of his Horatio Alger story.
According to the piece, the legal action is focused on the belief that these private equity companies "converted certain management fees collected from their investors into fund investments;" in a simpler diction, the companies are charged with writing off millions of dollars worth in taxes - Bain saving almost $200 million that could have gone to the state government's tax base.
The investigation rides off the coattail of a trove of documents Gawker leaked
last month that gave us all a glimpse into the dark, shady world that is Bain Capital and private equity. Downsizing, leveraged buyouts and dollar signs were in abundance as well as long lists of management fees skirted off into the capital gains domain. But although the documents provide the basis for the AG's argument, the subpoenas came before
the leak and have no connection to them.
Nonetheless, a look inside what made Mitt rich beyond belief with illegal implications could be destructive in the eyes of voters.... especially when all of his friends are involved, too.More »