IF STEVE SCHWARZMAN thought it was valid in 2010 to equate Barack Obama’s “war” against business to Hitler’s invasion of Poland, what can he be thinking now? Confidential-equity executives must be hoping the boss of Blackstone will keep his opinions to himself. More terrible publicity is the last business the diligence needs. Other Republican presidential candidates are competing to see who can say the most damning business about Mitt Romney’s career at Bain Capital. Newt Gingrich’s supporters have even made a sort of horror movie about what happens when confidential-equity firms like Bain Capital get their hands on otherwise healthy companies.The buy-out bit of the diligence, which buys mature companies, fixes them up and sells them on, is the one on trial (few have a terrible word for venture capital, which invests in start-ups). It is charged with destroying the jobs of ordinary people while enriching the likes of Mr Romney.Examples of dud deals are not hard to come by. The tax code’s treatment of debt (with interest on debt payments being tax-deductible) and confidential equity’s thirst for profits have at times driven the diligence to…

Original post by The Economist: Business