For Dems, Taxpayer Money Was No Object When It Came to Solyndra
Top Obama Officials Ignored Warnings that Democrat Efforts to Prop Up Solyndra Would Cost Taxpayers Dearly
- Top Obama administration officials worked to prop up now-bankrupt stimulus poster child Solyndra and the company’s investors despite warnings from their own staff that the efforts would come at high risk to taxpayers.
- Perhaps even worse, Democrats continue to defend gambling away millions of taxpayer dollars on high-risk companies.
- Taxpayers are now stuck with the bill for the Obama administration’s irresponsible bets with taxpayer money.
Top Obama administration officials worked to prop up now-bankrupt stimulus poster child Solyndra and the company’s investors despite warnings from their own staff that the efforts would come at high risk to taxpayers:
“E-MAILS: SOLYNDRA TOOK SALES PITCH DIRECTLY TO OBAMA”: (Jim McElhatton, “Emails: Solyndra Took Sales Pitch Directly to Obama,” The Washington Times, 8/2/2012)
SOLYNDRA FOUNDER: “THE BANK OF WASHINGTON CONTINUES TO HELP US”: ” ‘The Bank of Washington continues to help us,’ Mr. Gronet wrote in an email to a colleague after the loan deal.” (Jim McElhatton, “Emails: Solyndra Took Sales Pitch Directly to Obama,” The Washington Times, 8/2/2012)
SOLYNDRA INVESTOR: “WHILE THAT’S GOOD FOR US, I CAN’T IMAGINE IT’S A GOOD WAY FOR THE GOVERNMENT TO USE TAXPAYER MONEY”: “But privately, at least one investor was concerned, writing in an email that while Solyndra won a loan of more than $500 million, it had revenues of less than $100 million and wasn’t yet profitable: ‘… while that’s good for us, I can’t imagine it’s a good way for the government to use taxpayer money…'” (Jim McElhatton, “Emails: Solyndra Took Sales Pitch Directly to Obama,” The Washington Times, 8/2/2012)
NOW-WHITE HOUSE CHIEF OF STAFF “MAY HAVE DISREGARDED WARNINGS” THAT OBAMA ADMIN EFFORTS “TO PROP UP SOLYNDRA WERE UNWISE OR ILLEGAL”: (Bob King, “Solyndra Report May Implicate Lew, Washington Post Writes,” Politico, 8/2/2012)
“WHITE HOUSE ANALYST WARNED SAVING SOLYDRA COULD COST MORE THAN LETTING IT FAIL”: “Documents show that in January 2011, when Solyndra was in technical default on its loan, OMB analyst Kelly Colyar concluded that if the company were immediately liquidated, taxpayers would lose $141 million. If the loan were restructured and more money were released to Solyndra, she estimated, a subsequent default would cost taxpayers $385 million. The loss was attributable in part to allowing private investors to recover some of their money first.” (Joe Stephens and Carol Leonnig, “White House Analyst Warned Saving Solyndra Could Cost More Than Letting it Fail,” The Washington Post, 8/2/2012)
OMB OFFICIALS ALSO WARNED THAT A SECOND BAILOUT MIGHT NOT BE ENOUGH TO SAVE SOLYNDRA: “OMB analysts also questioned whether the bailout would be enough to save Solyndra, considering that cheap solar panels from overseas had begun flooding the market. ‘With increasing competition from China, and other low-cost competitors, it wasn’t clear how Solyndra would be able to achieve the scale-up and margins needed’ to survive, one e-mail said.” (Joe Stephens and Carol Leonnig, “White House Analyst Warned Saving Solyndra Could Cost More Than Letting it Fail,” The Washington Post, 8/2/2012)
OBAMA BUDGET ANALYST WAS “VASTLY CONFUSED BY DOE’S DECISION TO NEGOTIATE AWAY THEIR SENIOR POSITION” IN TALKS WITH PRIVATE INVESTORS OVER RESTRUCTURING SOLYNDRA LOAN: (Joe Stephens and Carol Leonnig, “White House Analyst Warned Saving Solyndra Could Cost More Than Letting it Fail,” The Washington Post, 8/2/2012)
PRIOR TO SOLYNDRA LOAN RESTRUCTURING “BIDEN AIDE SOUGHT INFO ON SOLYNDRA INVESTORS”: “A top aide to Vice President Joe Biden sought information about Solyndra’s private investors just days before the Energy Department made the solar company’s loan guarantee more favorable to the financers, new internal emails released Wednesday show.” (Darren Samuelsohn, “Biden Aide Sought Info on Solyndra Investors, Emails Show,” Politico, 11/2/2011)
FIVE DAYS LATER, SOLYNDRA ANNOUNCED $75 MILLION FUNDRAISING HAUL FROM INVESTORS, INCLUDING BILLIONAIRE OBAMA BUNDLER GEORGE KAISER: “Five days later, on Feb. 28, Solyndra announced it had raised $75 million from its private investors, including George Kaiser, a major 2008 Obama campaign bundler.” (Darren Samuelsohn, “Biden Aide Sought Info on Solyndra Investors, Emails Show,” Politico, 11/2/2011)
FISHY: DOE IMMEDATELY ANNOUNCED LOAN REFINANCING TO PUT NEW INVESTORS AT THE FRONT OF THE LINE: “DOE agreed then to refinance Solyndra’s loan with new terms so that investors could be paid back first on the $75 million if the company went bankrupt.” (Darren Samuelsohn, “Biden Aide Sought Info on Solyndra Investors, Emails Show,” Politico, 11/2/2011)
Perhaps even worse, Democrats continue to defend gambling away millions of taxpayer dollars on high-risk companies:
STIMULUS WEBSITE STILL PORTRAYS SOLYNDRA AS A NET JOB CREATOR: (“Estimated Jobs by Quarter,” Recovery.gov, Accessed 7/30/2012)
OMITTED: 1,100 EMPLOYEES WERE LAID OFF WHEN SOLYNDRA WENT BANKRUPT: (“Fremont-Based Solyndra Goes Bankrupt: 1,100 Workers Laid Off,” CBS San Francisco, 8/31/2011)
“OBAMA FUNDRAISES WITH PLAYERS IN SOLYNDRA SCANDAL”: “At an exclusive re-election fundraiser tonight, President Obama hobnobbed with 60 of his wealthiest supporters, including two figures at the center of the Solyndra loan controversy.” (Devin Dwyer, “Obama Fundraises With Players in Solyndra Scandal,” ABC News, 7/23/2012)
CAN’T MAKE IT UP: CENTRAL SOLYNDRA FIGURE “JUGGLED LEMONS”: “At the fundraiser Westly juggled lemons and entertained children.” (Darren Samuelsohn and Reid Epstein, “Steve Westly at Obama Fundraiser,” Politico, 7/23/2012)
DEMOCRATS HAVE REFUSED TO APOLOGIZE FOR THEIR SOLYNDRA DISASTER:
ENERGY AND COMMERCE RANKING DEMOCRAT HENRY WAXMAN (D-CA): SORRY I’M NOT SORRY ABOUT FUNDING SOLYNDRA: “I’m sorry Solyndra happened. We lost $500 million dollars. That’s a shame, but that’s why loan guarantees are provided. Because these are risky enterprises, and not all of them are going to succeed.” (Remarks from Henry Waxman, Energy and Commerce Hearing, 7/12/2012)
STIMULUS LOAN CHIEF: PROGRAM THAT FUNDED SOLYNDRA IS “AN ENORMOUS SUCCESS”: “Loan Chief Frantz: ‘Quite to the contrary, sir, I think it’s been an enormous success.'” (House Energy and Commerce Hearing, 7/12/2012)
OBAMA SAID STIMULUS WAS INTENDED TO “TAKE BETS” ON NOW-BANKRUPT COMPANIES LIKE SOLYNDRA: “But that’s exactly what the loan guarantee program was designed by Congress to do, was to take bets on these areas where we need to make sure that we’re maintaining our lead.” (“News Conference by the President,” The White House, 10/6/2011)
DEMOCRATS MAKING NO APOLOGIES FOR SOLYNDRA LOAN THAT LOST $535 MILLION IN TAXPAYER FUNDS: “Energy Secretary Steven Chu on Thursday declined an opportunity to issue a direct apology for Solyndra.” (Darren Samuelsohn, “Steven Chu: No Apologies on Solyndra,” Politico, 11/17/2011)
Taxpayers are now stuck with the bill for the Obama administration’s irresponsible bets with taxpayer money:
LATEST ESTIMATE: TAXPAYERS TO RECOVERY JUST $24 MILLION OF $527 MILLION LENT TO SOLYNDRA: (Joe Stephens and Carol Leonnig, “White House Analyst Warned Saving Solyndra Could Cost More Than Letting it Fail,” The Washington Post, 8/2/2012)
THE ATLANTIC: “ANOTHER SOLYNDRA IN THE MAKING?”: (Jordan Weissman, “Another Solyndra in the Making?”, The Atlantic, 7/9/2012)
A123 SYSTEMS RECEIVED $249 MILLION STIMULUS LOAN GRANT, NOW HAS ONLY FIVE MONTHS OF CASH LEFT: “On Friday, advanced battery maker A123 Systems, the recipient of a $249 million federal stimulus grant, informed investors that it had just five months worth of cash left to fund itself. While it’s a bit early to start administering last rites, the company’s situation is looking pretty funereal. A123’s share price is down to just about $1 from an all-time high of more than $25 in 2009. Management has plans to raise $39 million, in part by selling stock. But at least one analyst quoted by the Boston Globe believes they’ll need an infusion of at least $400 million over the next 18-months.” (Jordan Weissman, “Another Solyndra in the Making?”, The Atlantic, 7/9/2012)
THREE STIMULUS LOAN BENEFICIARIES HAVE ALREADY GONE BANKRUPT:
“ANOTHER SOLYNDRA? DOE LOAN RECIPIENT [ABOUND SOLAR] CLOSING”: (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)
ABOUND SOLAR FILING FOR BANKRUPTCY AFTER GETTING $70 MILLION IN STIMULUS FUNDS: “A solar manufacturing company that received nearly $70 million from the Obama administration is shutting down and filing for bankruptcy protection, the Energy Department said Thursday.
“Abound Solar won approval in 2010 for a $400 million loan guarantee to aid construction of solar manufacturing facilities in Longmont, Colo., and Tipton, Ind. But amid growing problems for domestic solar panel manufacturers, the company began missing milestones laid out by the department in its loan guarantee agreement.” (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)
“THE THIRD DOE-BACKED COMPANY TO DECLARE BANKRUPTCY”: “Abound is the third DOE-backed company to declare bankruptcy. The first was Solyndra last September. Beacon Power, an energy storage company, filed for bankruptcy protection the following month.” (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)
BEACON POWER GOES BANKRUPT AFTER $43 MILLION OBAMA STIMULUS LOAN: (Tom Hals and Roberta Rampton, “Beacon Power Bankrupt; had U.S. backing like Solyndra,” Reuters, 10/31/2011)
OBAMA-BACKED AMONIX LAID OFF 200 WORKERS EARLY THIS YEAR, RECEIVED $5.9 MILLION TAX CREDIT IN 2010: (Neil Munro, “More Solyndra-Style Failure: Obama-tied Amonix Lays Off Most of Company,” The Daily Caller, 1/30/2012)
A LONG RECORD OF FAILURE:
OBAMA’S DOE LENT $14.5 BILLION OVER 27 PROJECTS, “TURNED A BLIND EYE TO THE RISKS THAT HAVE BEEN GLARINGLY APPARENT”: “By the expiration of § 1705 program in September 2011, the DOE had approved 27 projects totaling more than $14.5 billion in guaranteed loans. Inexplicably, DOE management has turned a blind eye to the risks that have been glaringly apparent since the inception of the program.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)
“REPORT: ENERGY LOANS COULD COST $3B” FROM “HIGH-RISK” GREEN PROGRAMS: (“Report: Energy Loans Could Cost $3B,” Associated Press, 2/10/2012)
PRICE TAG FOR FAILED STIMULUS: $831 BILLION: (“CBO’s Estimates of ARRA’s Economic Impact,” Congressional Budget Office, 2/22/2012)
“RATINGS AGENCIES FULLY INFORMED THE DOE” OF RISKS OF “EXCESSIVE GLOBAL COMPETITION”: “The ratings agencies fully informed the DOE of their expectations for falling panel prices due to excessive global competition.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)
DOE SPENT TAXPAYER DOLLARS BACKING “MULTIPLE SOLAR” COMPANIES AND “ADDED TO A HEATED GLOBAL COMPETITION” THAT WAS “ALREADY CREATING AN EXCESSIVE SUPPLY OF SOLAR PANELS”: “DOE should have averted some of the risks it created in its portfolio by diversifying its investments across renewable energy technologies. DOE’s investment in multiple solar manufacturers added to a heated global competition that was already creating an excessive supply of solar panels. These manufacturers were forced to compete both against each other and other solar companies worldwide. As a result, the average selling price per watt for solar panels has continued its decline.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)