Politically-connected solar firm secured low interest government loan before collapse

[hvactec]

A politically connected solar company that pocketed a half billion dollar government loan, only to shutter its doors, fire workers and file for bankruptcy, secured an interest rate lower than other green energy projects, iWatch News and ABC News found -- one in a string of benefits the Obama administration doled out in bankrolling the project.

Now, the government's agreement with the company compels taxpayers to take a back seat to a venture fund associated with a key Obama fundraiser in trying to collect on the debt. Investors who put in $75 million would be repaid first; some $150 million of the government's $535 million would be next in line, according to the Energy Department's agreement with the company.

The $535 million loan to Solyndra Inc., issued by the Treasury Department's Federal Financing Bank as part of the Obama administration's stimulus to create jobs and spur development of green energy, included a quarterly interest rate of 1.025 percent, the government bank reported in July. Of 18 Energy Department stimulus loans cited in the bank's report, Solyndra's rate was lowest. Eight other Energy Department projects, each also backed by the Federal Financing Bank, came with rates three or four times higher, the report shows.

read more The Center for Public Integrity: Politically-connected solar firm secured low interest government loan before collapsing

 

[BluesMistress]

For some strange reason this does not surprise me in the least ~
Two words come to mind ~ Treason & Impeachment

 

[The Infidel]

Id just like to know where all the money went




Green technology.... right on course with all the rest of the fraud

 

[flacaltenn]

Id just like to know where all the money went

Green technology.... right on course with all the rest of the fraud

Well for one thing -- these primadonnas couldn't consider existing buildings for their corporate HQ.. They had to build a Huge new plant in the center of Silicon Valley which has some of the most expensive lot space on the planet.. That tells you something about the mgt priorities...

Anyway -- I can't really get excited about the OP. Of course I'm livid about the political connections and HorseShit that got them the loan in the 1st place without adequate review.

But when a start-up goes extinct -- It's a crap shoot as to who gets what. Employees are USUALLY first, then preferred stockholders, then the banks, then the general stockholders.

Not enough information to judge if the Fed govt PURPOSELY placed it's debt recovery behind the stockholders..

 

[whitehall]

Something like Clinton propping up Enron and pardoning Marc Rich. Democrats are all alike. If the liberal media stopped covering for them they would all be in jail.

 

[The Infidel]

Id just like to know where all the money went

Green technology.... right on course with all the rest of the fraud

Well for one thing -- these primadonnas couldn't consider existing buildings for their corporate HQ.. They had to build a Huge new plant in the center of Silicon Valley which has some of the most expensive lot space on the planet.. That tells you something about the mgt priorities...

Anyway -- I can't really get excited about the OP. Of course I'm livid about the political connections and HorseShit that got them the loan in the 1st place without adequate review.

But when a start-up goes extinct -- It's a crap shoot as to who gets what. Employees are USUALLY first, then preferred stockholders, then the banks, then the general stockholders.

Not enough information to judge if the Fed govt PURPOSELY placed it's debt recovery behind the stockholders..

I was directing the fraud accusations more at the company than the govt. I just think the govt was duped.
The left, and some dummies on the right seem to always get fooled into believing the global warming nonsense.

Too much fraud and silliness for me.

Now we are ALL in the tank for several hundred billion dollars

Where did it all go?

 

[waltky]

Treasury joins investigation into Solyndra...

Treasury Joins FBI, Congress in Investigating Stimulus Loan to Failed Solar Panel Company
September 15, 2011 | The Treasury Department has launched an investigation into a now-defunct solar panel company's $528 million stimulus loan, focusing specifically on the federal bank that processed it.

The loan to Solyndra has set off a firestorm on Capitol Hill, with a Republican-led House committee releasing emails suggesting the White House had pressured budget officials into expediting their fiscal review of the loan ahead of a plant groundbreaking. The company was touted prominently by the Obama administration for its work growing so-called green jobs. But the company went bankrupt this month and is now the target of investigations by the FBI and the Energy Department, as well the House Energy and Commerce Committee.

The Treasury Inspector General's Office said Wednesday night that it too, is investigating the loan, because it was processed by Federal Financing Bank, a government lending institution that falls under Treasury's control. The Treasury's investigation was first reported by ABC News, which quoted a spokesman as saying investigators would "look at everything the FFB had to do with its role in this thing." Obama administration officials on Wednesday defended their support for the loan, claiming the firm fell victim to global economic trends but that federal investment in alternative energy must continue and the administration is moving to finalize as many as 15 loan guarantees for renewable energy companies before the stimulus program ends on Sept. 30.

The testimony came as Republican and Democratic lawmakers raised sharp questions about the decision that ultimately left taxpayers on the hook for millions, and as the newly released emails show administration officials were raising doubts about the loan proposal to Solyndra months before it was finalized. Rep. Fred Upton, R-Mich., said the program was "shrouded in secrecy and uncertainty," questioning whether the loan represented "one bad bet" or the "tip of the iceberg." Jeffrey Zients, deputy director of the White House budget office, acknowledged that Solyndra's bankruptcy will "limit the government's recovery of funds." He called the outcome "very unfortunate."

But at the hearing Wednesday, he said administration officials provided a "thorough examination and analysis" of the loan proposal and said a "challenging global solar market" has made business harder for companies like Solyndra. Jonathan Silver, director of the Energy Department's energy loan office, also said a combination of factors -- namely China flooding the marketplace with cheap solar panels and the European buying market tightening as a result of their economic troubles -- has caused solar-cell prices to plummet. "These changes were particularly damaging to Solyndra," he said.

Read more: Treasury Joins FBI, Congress In Investigating Stimulus Loan To Failed Solar Panel Company | Fox News