FBD
09-07-2011, 11:22 PM
http://abcnews.go.com/Blotter/solyndra-investigation-probe-white-house-role-massive-energy/story?id=14434588
By MATTHEW MOSK and RONNIE GREENE
ABC NEWS and iWATCH NEWS
Sept. 2, 2011
House investigators said they have uncovered evidence that White House officials became personally involved in an Energy Department review of a hot-button $535 million loan guarantee to the now-failed California solar company Solyndra.
The allegation surfaced in a letter House Energy Committee Chairman Fred Upton (R-Mich.) sent to the White House Thursday night, saying he planned to accelerate efforts to understand an investment deal that may have left taxpayers out half a billion dollars.
"We have learned from our investigation that White House officials monitored Solyndra's application and communicated with [Department of Energy] and Office of Management and Budget officials during the course of their review," the letter says.
Thursday's letter, which calls on the White House to turn over correspondence between administration officials, Solyndra and its investors, presents the most pointed suggestion that the White House had direct involvement in the financing.
"How did this company, without maybe the best economic plan, all of a sudden get to the head of the line?" Upton told ABC News in an interview this week. "We want to know who made this decision ... and we're not going to stop until we get those answers."
READ: Solyndra Collapse a 'Waste' of Half a Billion By Obama, GOP Critics Say
White House officials have said in interviews that they did not intervene in the Solyndra deal or others benefiting companies backed by supporters of the president. Yet the administration, from Obama to the Department of Energy, has very publicly praised the loan guarantee.
READ at CPI: White House Had Role in Federal Benefit for Failed Solar Company, House Investigators Say
Follow BrianRoss on Twitter
In 2009, the Obama administration hailed the Solyndra loan as the first in a series of federal infusions for "green energy" firms that held the potential to clean up the environment and create jobs. But earlier this week, Solyndra abruptly closed its doors, announced it would file for bankruptcy and laid off more than 1,100 workers.
While Energy Department officials steadfastly vouched for Solyndra -- even after an earlier round of layoffs raised eyebrows -- other federal agencies and industry analysts for months questioned the viability of the company. Peter Lynch, a longtime solar industry analyst, told ABC News the company's fate should have been obvious from the start.
"Here's the bottom line," Lynch said. "It costs them $6 to make a unit. They're selling it for $3. In order to be competitive today, they have to sell it for between $1.5 and $2. That is not a viable business plan."
Other flags have been raised about how the Energy Department pushed the deal forward. The Center for Public Integrity's iWatch News and ABC disclosed that Energy Department officials announced the support for Solyndra even before final marketing and legal reviews were in. To government auditors, that move raised questions about just how fully the department vetted the deal -- and assessed its risk to taxpayers -- before signing off.
READ: Did Obama Administration Cut Corners for a Green Energy Company?
The White House's Office of Budget and Management viewed the arrangement as a riskier bet to taxpayers than DOE had. That forced the government to set aside millions more in case of a default, iWatch reported last month.
Republicans in Congress have raised questions for months about the Energy Department's decision to make Solyndra the poster-child for the green energy loan program. They expressed concern that so much federal money was headed to a company whose key investor was George Kaiser, an Oklahoma billionaire who raised more than $50,000 for Obama's 2008 presidential campaign. Since May, Kaiser has declined interview requests.
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:-k
http://hotair.com/archives/2011/09/07/how-did-solyndra-get-a-sweetheart-interest-rate/
ABC News discovered that the solar-tech firm Solyndra got unusually low interest rates on its federally-guaranteed loans before it collapsed last month, sending 1000 workers to the unemployment line in California. Other green-tech firms receiving loans paid as much as three and four times the interest rate Solyndra secured for its $535 million from Barack Obama’s 2009 stimulus bill from the Treasury’s Federal Financing Bank. ABC notes that other green-tech firms didn’t have the connections that Solyndra had to Obama:
....
And guess who gets paid out of the bankruptcy first?
.....
Under terms of the bankruptcy filing, investors including Argonaut — which led a $75 million round of financing for Solyndra earlier this year — will stand in line before the federal government and other creditors.
When Solyndra announced that round of fundraising this February, it noted that the DOE had refinanced terms of the $535 million loan to extend the payment period. Under an “inter-creditor agreement” cited in the bankruptcy filing, the investors in the $75 million financing are considered first lien holders. That leaves Obama officials to confront the prospect of waiting behind private companies.
Don’t think that this happened by accident. Before Obama took office, Solyndra applied for the federally-subsidized green-tech loan, and only scored a B+ from appraisers, which ABC calls a “red flag.” Dun & Bradstreet only gave a “fair” rating to Solyndra credit, another indication that a big loan might be risky. Instead of slowing the process down to protect taxpayers, the Obama administration fast-tracked Solyndra’s application and made the company a poster child for its promise of a green-jobs “explosion.”
The White House has to explain why it overruled the FFB’s auditors and ignored the warnings from appraisers while fast-tracking over half a billion dollars to a teetering company at loan rates far below what FFB charged other companies. Obama also needs an explanation of why his bundler George Kaiser will get his capital back before taxpayers see the first dime of that $535 million that got destroyed in Solyndra’s collapse. If they don’t have a legitimate explanation for these, then Congress may need to start issuing subpoenas to get answers, because right now it looks very much like Obama used taxpayer money to try to bail out a key campaign donor and left us all holding the bag.
---------------------------------------------------------------------------
:-k
yeah, yeah, I know, toss it on the heap.
By MATTHEW MOSK and RONNIE GREENE
ABC NEWS and iWATCH NEWS
Sept. 2, 2011
House investigators said they have uncovered evidence that White House officials became personally involved in an Energy Department review of a hot-button $535 million loan guarantee to the now-failed California solar company Solyndra.
The allegation surfaced in a letter House Energy Committee Chairman Fred Upton (R-Mich.) sent to the White House Thursday night, saying he planned to accelerate efforts to understand an investment deal that may have left taxpayers out half a billion dollars.
"We have learned from our investigation that White House officials monitored Solyndra's application and communicated with [Department of Energy] and Office of Management and Budget officials during the course of their review," the letter says.
Thursday's letter, which calls on the White House to turn over correspondence between administration officials, Solyndra and its investors, presents the most pointed suggestion that the White House had direct involvement in the financing.
"How did this company, without maybe the best economic plan, all of a sudden get to the head of the line?" Upton told ABC News in an interview this week. "We want to know who made this decision ... and we're not going to stop until we get those answers."
READ: Solyndra Collapse a 'Waste' of Half a Billion By Obama, GOP Critics Say
White House officials have said in interviews that they did not intervene in the Solyndra deal or others benefiting companies backed by supporters of the president. Yet the administration, from Obama to the Department of Energy, has very publicly praised the loan guarantee.
READ at CPI: White House Had Role in Federal Benefit for Failed Solar Company, House Investigators Say
Follow BrianRoss on Twitter
In 2009, the Obama administration hailed the Solyndra loan as the first in a series of federal infusions for "green energy" firms that held the potential to clean up the environment and create jobs. But earlier this week, Solyndra abruptly closed its doors, announced it would file for bankruptcy and laid off more than 1,100 workers.
While Energy Department officials steadfastly vouched for Solyndra -- even after an earlier round of layoffs raised eyebrows -- other federal agencies and industry analysts for months questioned the viability of the company. Peter Lynch, a longtime solar industry analyst, told ABC News the company's fate should have been obvious from the start.
"Here's the bottom line," Lynch said. "It costs them $6 to make a unit. They're selling it for $3. In order to be competitive today, they have to sell it for between $1.5 and $2. That is not a viable business plan."
Other flags have been raised about how the Energy Department pushed the deal forward. The Center for Public Integrity's iWatch News and ABC disclosed that Energy Department officials announced the support for Solyndra even before final marketing and legal reviews were in. To government auditors, that move raised questions about just how fully the department vetted the deal -- and assessed its risk to taxpayers -- before signing off.
READ: Did Obama Administration Cut Corners for a Green Energy Company?
The White House's Office of Budget and Management viewed the arrangement as a riskier bet to taxpayers than DOE had. That forced the government to set aside millions more in case of a default, iWatch reported last month.
Republicans in Congress have raised questions for months about the Energy Department's decision to make Solyndra the poster-child for the green energy loan program. They expressed concern that so much federal money was headed to a company whose key investor was George Kaiser, an Oklahoma billionaire who raised more than $50,000 for Obama's 2008 presidential campaign. Since May, Kaiser has declined interview requests.
-------------------------------------------------------
:-k
http://hotair.com/archives/2011/09/07/how-did-solyndra-get-a-sweetheart-interest-rate/
ABC News discovered that the solar-tech firm Solyndra got unusually low interest rates on its federally-guaranteed loans before it collapsed last month, sending 1000 workers to the unemployment line in California. Other green-tech firms receiving loans paid as much as three and four times the interest rate Solyndra secured for its $535 million from Barack Obama’s 2009 stimulus bill from the Treasury’s Federal Financing Bank. ABC notes that other green-tech firms didn’t have the connections that Solyndra had to Obama:
....
And guess who gets paid out of the bankruptcy first?
.....
Under terms of the bankruptcy filing, investors including Argonaut — which led a $75 million round of financing for Solyndra earlier this year — will stand in line before the federal government and other creditors.
When Solyndra announced that round of fundraising this February, it noted that the DOE had refinanced terms of the $535 million loan to extend the payment period. Under an “inter-creditor agreement” cited in the bankruptcy filing, the investors in the $75 million financing are considered first lien holders. That leaves Obama officials to confront the prospect of waiting behind private companies.
Don’t think that this happened by accident. Before Obama took office, Solyndra applied for the federally-subsidized green-tech loan, and only scored a B+ from appraisers, which ABC calls a “red flag.” Dun & Bradstreet only gave a “fair” rating to Solyndra credit, another indication that a big loan might be risky. Instead of slowing the process down to protect taxpayers, the Obama administration fast-tracked Solyndra’s application and made the company a poster child for its promise of a green-jobs “explosion.”
The White House has to explain why it overruled the FFB’s auditors and ignored the warnings from appraisers while fast-tracking over half a billion dollars to a teetering company at loan rates far below what FFB charged other companies. Obama also needs an explanation of why his bundler George Kaiser will get his capital back before taxpayers see the first dime of that $535 million that got destroyed in Solyndra’s collapse. If they don’t have a legitimate explanation for these, then Congress may need to start issuing subpoenas to get answers, because right now it looks very much like Obama used taxpayer money to try to bail out a key campaign donor and left us all holding the bag.
---------------------------------------------------------------------------
:-k
yeah, yeah, I know, toss it on the heap.