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Hey, Let’s Loan Solyndra Some More Money!



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New e-mails have surfaced that suggest Solyndra was trying to get an additional $469 million in taxpayer funds. Washington Post:

Newly released e-mails show the Obama administration’s Energy Department was poised to give Solyndra a second taxpayer loan of $469 million last year, even as the company’s financial situation grew increasingly dire.

The department was still considering providing the second loan guarantee to the solar-panel manufacturer in April and May 2010, at a time when Solyndra’s auditors were already warning that the company was in danger of collapsing.

Newly released e-mails show the Obama administration’s Energy Department was poised to give Solyndra a second taxpayer loan of $469 million last year, even as the company’s financial situation grew increasingly dire.

The department was still considering providing the second loan guarantee to the solar-panel manufacturer in April and May 2010, at a time when Solyndra’s auditors were already warning that the company was in danger of collapsing.

The Energy Department provided Solyndra with its first taxpayer-backed loan guarantee in September 2009. Documents released this week show that White House career staffers, who first questioned the loan that fall, by April 2010 were using gallows humor to describe the prospect of giving Solyndra a second round of help. That spring, industry analysts were publicly questioning how the Silicon Valley start-up could be spending cash so quickly from the federal loan and $933 million in private capital.

“Apparently the loan size for Phase II is $469 million,” one analyst at the Office of Management and Budget wrote. “I’ve been told we should expect [to] see that project soon for conditional commitment.”

Another joked: “Possible to close and default on one before closing on a second??? Could be a new record.”

That last line begs the question, what do the OMB people think about the rest of the portfolio? Why not release all the e-mails?

The rest here.



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