comMITTed to Romney!

Gov. Romney’s former company Bain Capital LLC has teamed up with Hellman & Friedman LLC to acquire prestigious investment management firm Neuberger Berman. The headlines are sobering, but there is value out there, if you know where to look for it. Bain Capital knows where to look.

~~John Cronin~~

WSJ Online

Private-equity firms Bain Capital LLC and Hellman & Friedman LLC reached a deal to acquire a chunk of Lehman Brothers Holdings Inc.’s investment-management unit, including its prized Neuberger Berman division, for $2.15 billion.

An auction of the profitable investment-management unit began more than a month ago as Lehman scrambled to raise capital.

The Wall Street firm originally planned to sell a 55% stake in the unit, but as a result of its bankruptcy filing the entire business was placed on the block.

The price paid by Bain Capital and Hellman is a sharp discount to the amount Neuberger and Lehman’s had previously valued the unit.

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Wouldn’t it be great to have Mitt Romney as the new Treasury Secretary right about now? Financial market talking heads are saying that this would be a very bad time to raise taxes in an economy that is teetering on the edge of a very serious recession. I know that history shows us that financial panics don’t necessarily spread to become economic panics, but I remember that Gov. Romney’s prescription for a strong economy included keeping taxes low. Romney’s approach of a top down analysis of a company he was considering an investment in, is the same approach we need to take in regard to cutting the bloated federal budget. We are at the point, after the massive federal interventions in the Bear Sterns collapse and the seizure of Freddie and Fannie, that we no longer have the option of coming in the back door of these institutions with wheel barrows filled with tax payer money. We will now have to get back to the hard work of making money and running a business with the sure knowledge that if we get in a bind we can’t get out of, UNCLE SAM AIN’T COMIN’ WITH HIS CHECKBOOK!

~~John Cronin~~

http://www.marketwatch.com/news/story/lehman-files-bankruptcy-protection-historic/story.aspx?guid={50D06AF4-0AD5-4B38-8206-D4C8D6E62EC7}

Lehman files for bankruptcy protection

Wall Street titan goes under after frenzied search for buyer falls short

NEW YORK (MarketWatch) – Wall Street struggled Monday to adjust to a new industry order as Lehman Brothers’ bankruptcy filing rocked investors and pulled down financial stocks around the globe.

Lehman (LEH:)
Lehman Brothers Holdings Inc
News, chart, profile, more

Last: 0.20-3.45-94.52%

LEH 0.20, -3.45, -94.5%) on Monday filed for Chapter 11 bankruptcy protection, ending the 158-year-old Wall Street firm’s run and rattling the foundation of the global financial system.

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