Joe Biden: Crony Capitalism’s Phone-a-Friend

October 11, 2012

Joe Biden: Crony Capitalism’s Phone-a-Friend

Brightsource Energy Aggressively Lobbied Vice President’s Office, Got $1.6 Billion Taxpayer-Funded Loan Guarantee Approved

Newly released e-mails show how Solyndra sibling Brightsource Energy employed former Biden staff and enlisted the Vice President’s office to apply political pressure so its $1.6 billion taxpayer-funded loan guarantee would be approved.
This apparent crony capitalism is a pattern for Democrats who have repeatedly put political gain above common sense when it comes to spending taxpayer money.
Democrats think it’s their job to bet taxpayer money on high-risk green companies while taxpayers are left holding the bag for the Democrats’ failure.

Newly released e-mails show how Solyndra sibling Brightsource Energy employed former Biden staff and enlisted the Vice President’s office to apply political pressure so its $1.6 billion taxpayer-funded loan guarantee would be approved:

“INFLUENCE PEDDLING RUNS DEEP IN ENERGY LOAN DEAL; BRIGHTSOURCE EMAILS SHOW CAJOLING”: (Ben Wolfgang, “Influence Peddling Runs Deep in Energy Loan Deal; Brightsource Emails Show Cajoling,” The Washington Times, 10/10/2012)

“COMPANY APPLIED POLITICAL PRESSURE AND USED BEHIND-THE-SCENES CAJOLING TO WIN $1.6 BILLION LOAN GUARANTEE IN APRIL 2011”: (Ben Wolfgang, “Influence Peddling Runs Deep in Energy Loan Deal; Brightsource Emails Show Cajoling,” The Washington Times, 10/10/2012)

E-MAILS: BRIGHTSOURCE TARGETED WHITE HOUSE, VICE PRESIDENT’S OFFICE TO GET ITS LOAN APPROVED: “ ‘We have a lot of force gearing up to leaverage [sic] them now, including the WH and VP office [Sen. Harry] Reid and [Sen. Dianne] Feinstein, and Gov. [Jerry] Brown’ of California, reads an early March 2011 email from Arthur Haubenstock, the company’s vice president of regulatory affairs.” (Ben Wolfgang, “Influence Peddling Runs Deep in Energy Loan Deal; Brightsource Emails Show Cajoling,” The Washington Times, 10/10/2012)

E-MAILS “LAY OUT LOBBYING STRATEGIES AND KEY THEMES TO BE REPEATED TO ADMINISTRATION OFFICIALS” TO GET LOAN APPROVED: (Ben Wolfgang, “Influence Peddling Runs Deep in Energy Loan Deal; Brightsource Emails Show Cajoling,” The Washington Times, 10/10/2012)

COMPANIES ENLISTED BIDEN’S FORMER CHIEF TO LOBBY FOR LOAN GUARANTEE APPROVAL: “Other emails from 2009 and the first 10 months of 2010 show apparent political calculations that BrightSource and affiliate companies hoped to use to their advantage. On Dec. 3, 2009, Bernard Toon — formerly Mr. Biden’s chief of staff who later became a lobbyist for Bechtel Corp., a mammoth construction company and contractor for the Ivanpah project — lays out how the project could help two influential Democratic senators.” (Ben Wolfgang, “Influence Peddling Runs Deep in Energy Loan Deal; Brightsource Emails Show Cajoling,” The Washington Times, 10/10/2012)

BIDEN’S FORMER CHIEF CALLED THE VICE PRESIDENT’S OFFICE TO APPLY POLITICAL PRESSURE, DISCUSS HOW APPROVAL COULD BENEFIT SENATORS BARBARA BOXER (D-CA) AND HARRY REID (D-NV) IN THE 2010 ELECTIONS: “ ‘Calls are in to Biden’s staff and I will be approaching the political affairs office at the White House tomorrow as well, as this project could benefit two senators who are in cycle and whose races will be tough next year — [Barbara] Boxer and the Majority Leader, Sen. Reid,’ he wrote in the message to BrightSource CEO John Woolard.” (Ben Wolfgang, “Influence Peddling Runs Deep in Energy Loan Deal; Brightsource Emails Show Cajoling,” The Washington Times, 10/10/2012)

This apparent crony capitalism is a pattern for Democrats who have repeatedly put political gain above commonsense when it comes to spending taxpayer money:

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)

SOLYNDRA INVESTOR: OBAMA’S “DOE REALLY THINKS POLITICALLY BEFORE IT THINKS ECONOMICALLY”: (Amy Harder, “QUICK TAKE: “E-mails Suggest DOE Put Politics Above Economics with Solyndra,” National Journal, 11/16/2011)

OFFICIALS DISCUSSED “POLITICAL FALLOUT” WHILE “SOLYNDRA TOTTERED”; “RARELY, IF EVER” WERE WORKERS CONSIDERED: (Joe Stephens and Carol D. Leonnig, “Solyndra: Politics Infused Obama Energy Programs,” The Washington Post, 12/25/2011)

OBAMA TEAM URGED SOLYNDRA TO DELAY LAYOFF NOTICES UNTIL AFTER THE 2010 ELECTION: ”But in an Oct. 30, 2010 e-mail, advisers to Solyndra’s primary investor, Argonaut Equity, explain that the Energy Department had strongly urged the company to put off the layoff announcement until Nov. 3. The midterm elections were held Nov. 2, and led to Republicans taking control of the U.S. House of Representatives.” (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

OBAMA’S “GREEN” PROGRAM “INFUSED WITH POLITICS AT EVERY LEVEL”: “Meant to create jobs and cut reliance on foreign oil, Obama’s green-technology program was infused with politics at every level, The Washington Post found in an analysis of thousands of memos, company records and internal e-mails. Political considerations were raised repeatedly by company investors, Energy Department bureaucrats and White House officials.

“The records, some previously unreported, show that when warned that financial disaster might lie ahead, the administration remained steadfast in its support for Solyndra.” (Joe Stephens and Carol D. Leonnig, “Solyndra: Politics Infused Obama Energy Programs,” The Washington Post, 12/25/2011)

CONGRESSIONAL REPORT: “POLITICAL PRESSURE” TO BLAME FOR FAST-TRACKED LOAN TO NOW-BANKRUPT SOLYNDRA: (“E-mails Show Ex-Solyndra CEO Thanked ‘Bank of Washington,’ as New Report Rips Loan Process,” Fox News, 8/2/2012)

SOLYNDRA CEO THANKED “THE BANK OF WASHINGTON”: (“E-mails Show Ex-Solyndra CEO Thanked ‘Bank of Washington,’ as New Report Rips Loan Process,” Fox News, 8/2/2012)

STIMULUS CRONY CAPITALISM? WASHINGTON POST AUDIT FOUND $3.9 BILLION IN TAXPAYER MONEY WENT TO “21 COMPANIES WITH CONNECTIONS TO FIVE OBAMA ADMINISTRATION STAFFERS AND ADVISERS”: “During the next three years, the department provided $2.4 billion in public funding to clean-energy companies in which Wagle’s former firm, Vantage Point Venture Partners, had invested, a Washington Post analysis found. Overall, the Post found that $3.9 billion in federal grants and financing flowed to 21 companies backed by firms with connections to five Obama administration staffers and advisers.” (Carol Leonnig and Joe Stephens, “Venture Capitalists Play Key Role in Obama’s Energy Department,” The Washington Post, 2/14/2012)

A CONFLICT OF INTEREST? “INDUSTRY HAD A HUGE STAKE” IN WHICH FIRMS RECEIVED GOV’T SUPPORT: “At the same time, their industry had a huge stake in decisions about which companies would receive government loans, grants and support.” (Carol Leonnig and Joe Stephens, “Venture Capitalists Play Key Role in Obama’s Energy Department,” The Washington Post, 2/14/2012)

Democrats think it’s their job to bet taxpayer money on high-risk green companies while taxpayers are left holding the bag for the Democrats’ failure:

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)

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)

TAXPAYERS TO RECOVER JUST $24 MILLION OF $527 MILLION LENT TO NOW-BANKRUPT SOLYNDRA: “Last week, Solyndra’s final liquidation plan estimated that the government will recover just $24 million of the $527 million that taxpayers lent to the company.” (Joe Stephens and Carol Leonnig, “White House Analyst Warned Saving Solyndra Could Cost More Than Letting It Fail,” The Washington Post, 8/1/12)

Joe Biden: Crony Capitalism’s Phone-a-Friend http://ow.ly/epg5I