Good news: Solyndra violated terms of Energy Dep’t loan — but loan was restructured anyway

posted at 8:40 pm on September 29, 2011 by Allahpundit

Why not? If we’re going to reward failure, we might as well stick with it to the bitter end. Good money after bad:

The U.S. Department of Energy learned in December that Solyndra was violating its federal loan deal, but the agency changed the loan terms to allow the solar company to continue receiving taxpayer funds, federal officials confirmed Wednesday…

The company was unable on Dec. 1 to make its first $5 million payment into a special reserve fund, which was required under the loan terms and designed to help protect taxpayers.

Congressional investigators have questioned why the Obama administration agreed to help the company in late 2010 when it was warned that the firm was at risk of collapse. Internal e-mails show federal reviewers initially estimated they could save the taxpayers as much as $168 million by letting the company go under in December 2010, rather than resuscitating it and allowing it to draw down more federal money.

This was the same loan restructuring, mind you, in which the Department of Energy agreed to subordinate their claim as creditors to that of private investors who ended up plowing another $75 million into Solyndra. (A decision which, mind you, might have been illegal.) The Journal has more on how Solyndra violated the terms of the loan, but I want to highlight this bit tucked away at the bottom of the story almost as an aside. News is breaking tonight that the FBI is investigating the company for possible accounting fraud in how it represented its financials to the feds, but (a) we already suspected that the FBI was looking into that and (b) it’s unclear to me why our best and brightest couldn’t figure out that Solyndra was lying given what they already knew about the business. Quote:

There are also questions about whether the Obama administration should have known about Solyndra’s problems even before the loan guarantee was made. In a previously undisclosed Sept. 9 report, the Congressional Research Service said that by the time of the September 2009 guarantee one of the company’s key advantages—the fact it didn’t use high-priced polysilicon as competitors did—had disappeared.

Polysilicon cost more than $400 per kilogram in 2008 but dropped to slightly more than $50 per kilogram in September 2009, the report said.

The company’s competitive advantage over Chinese solar companies had evaporated more than a year before they sought the loan restructuring and more than six months before Obama showed up at the plant for his green-energy photo op and yet, somehow, here we are. But look on the bright side: They got an awesome new factory out of the deal, replete with robots that whistle Disney tunes and “spa-like showers with liquid-crystal displays of the water temperature.” Why they needed extra production space when no one was buying their overpriced solar units, I simply don’t know, but having already once procured a half-billion-dollar federal loan, who can blame them for thinking there’d be more taxpayer money to keep them afloat if need be?

Exit question via Guy Benson: Is it time to broaden the investigation to other federal agencies? Hmmmm.

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Allah you really need to start reading my twitter feeds

http://abclocal.go.com/kgo/story?section=news/business&id=8370633&rss=rss-kgo-article-8370633

Solyndra, not only received a $500 million loan guarantee, it also got a favorable ruling from the IRS. According to “California Watch” — a unit of the Center For Investigative Reporting — the IRS decision gave Solyndra’s customers a 10-percent tax deduction and it was later increased to 30 percent.

William Amos on September 29, 2011 at 8:43 PM

And this today

http://www.politico.com/news/stories/0911/64727.html

Energy Secretary Steven Chu is taking responsibility for making the final decisions at two critical moments in the rise and fall of Solyndra.
Almost two years later, in February 2011, Chu green-lighted new terms for Solyndra’s loan in a way that allowed private investors, rather than taxpayers, to be the first to get paid back in the event of a default. That decision came despite warnings that the company was on the brink of going belly-up.

William Amos on September 29, 2011 at 8:49 PM

William Amos on September 29, 2011 at 8:43 PM

You really need to start clicking the links in my posts, Bill.

Allahpundit on September 29, 2011 at 8:50 PM

And this is sliding under the radar right now

http://www.washingtonpost.com/politics/investment-in-failed-solar-firm-solyndra-raises-questions-about-nonprofits-purpose/2011/09/27/gIQAVByZ2K_story.html

Six years ago, Senate Finance Committee investigators mounted an inquiry into an exotic variety of nonprofit organization that they feared affluent families were using to warehouse wealth while simultaneously earning themselves lucrative tax breaks.

One nonprofit group singled out for scrutiny was a low-profile organization based in Tulsa. That group, the George Kaiser Family Foundation, later became the biggest investor in Solyndra, the solar company that collapsed last month after burning through a half-billion dollars in taxpayer money.

William Amos on September 29, 2011 at 8:51 PM

You really need to start clicking the links in my posts, Bill.

Allahpundit on September 29, 2011 at 8:50 PM

Allah the point is I sent you that story two days ago.

William Amos on September 29, 2011 at 8:51 PM

What are a few broken laws amongst campaign contributors?

It’s not like anyone got killed, right?

Chip on September 29, 2011 at 8:52 PM

Allah the point is I sent you that story two days ago.

William Amos on September 29, 2011 at 8:51 PM

Yes, but unfortunately there’s not much to it. That’s why I didn’t spotlight it here. It’s more of a “hey, the timing is interesting” story. There’s no specific allegation of wrongdoing.

Allahpundit on September 29, 2011 at 8:53 PM

“Is it time to broaden the investigation to other federal agencies?”

Until elected politicians and their bureaucratic appointees start doing some serious jail time…

… this will never stop.

Seven Percent Solution on September 29, 2011 at 8:56 PM

There’s no specific allegation of wrongdoing.

Allahpundit on September 29, 2011 at 8:53 PM

That’s Funny, no yabuts.

whbates on September 29, 2011 at 8:57 PM

Bundlers on the inside
************************

Top Obama fundraisers at Energy Department included an overseer of stimulus billions
*****************

Recovery Act records show Allison Spinner’s law firm, Wilson Sonsini Goodrich & Rosati , received $2.4 million in federal funds for legal fees related to the $535 million Energy Department loan guarantee to Solyndra, a solar company whose financial meltdown has prompted multiple investigations. She pledged to take no portion of the money and did not work on the loan applications.
(More……….)

http://www.iwatchnews.org/2011/09/29/6774/bundlers-inside

canopfor on September 29, 2011 at 8:59 PM

I am so beyond disgusted with this story, and F&F.

Will justice ever come? I’m really having doubts on that. Which is why Obama and his comrades feel emboldened to keep giving out more of OUR money for this clap trap.

capejasmine on September 29, 2011 at 9:01 PM

Is it time to broaden the investigation to other federal agencies?

For what? So we can have more crooked scumbags take the Fifth in front of Congress and have the DOJ play more stall tactics?

Knucklehead on September 29, 2011 at 9:01 PM

Allah the point is I sent you that story two days ago.

William Amos on September 29, 2011 at 8:51 PM

William Amos:Heres a site,Bundlers,for info and research,you might
have it,I dunno!:)
==========================================

http://www.iwatchnews.org/

canopfor on September 29, 2011 at 9:02 PM

Energy Secretary Steven Chu is taking responsibility for making the final decisions at two critical moments in the rise and fall of Solyndra. Almost two years later, in February 2011, Chu green-lighted new terms for Solyndra’s loan in a way that allowed private investors, rather than taxpayers, to be the first to get paid back in the event of a default. That decision came despite warnings that the company was on the brink of going belly-up.

William Amos on September 29, 2011 at 8:49 PM

Chu is Exhibit B in the case, “Getting Handed A Nobel Prize Doesn’t Mean You Are as Smart as You Think.”

(Of course, we already knew that from Exhibit A… the 2009 Nobel Peace Prize winner.)

VastRightWingConspirator on September 29, 2011 at 9:02 PM

Will justice ever come? I’m really having doubts on that. Which is why Obama and his comrades feel emboldened to keep giving out more of OUR money for this clap trap.

capejasmine on September 29, 2011 at 9:01 PM

I’m so disgusted with all of it, I’m starting to tune it out. Maybe that’s the plan.

Knucklehead on September 29, 2011 at 9:04 PM

Sure glad this isn’t Team Right,the MSM,
would be having a NeverEnding Specials 24/7,
with continous Breaking News Updates!

canopfor on September 29, 2011 at 9:04 PM

He’s going to implode on live TV.

Then he’ll claim whatever it is that big politicians claim that made them violate the laws of public decency. And then, he will make a frowny face and resign. And then he’ll go back into public service and rape the system again, and again and again.

/The NannyFran voice

Key West Reader on September 29, 2011 at 9:05 PM

Allahpundit on September 29, 2011 at 8:53 PM

Understand Allah sorry for the miscommunication. Thanks

William Amos on September 29, 2011 at 9:07 PM

Liberal squandered Stimulus Loot Job Creation Failure
OverLoad!

Or,Campaign Bundler Donor Loot Kick-Backs for Stimulus Loot
and Contracts!!

canopfor on September 29, 2011 at 9:07 PM

This administration has had a pretty bad week. Let’s see, there was the article about green jobs costing around $23 million each, there were the Fast&Furious allegations, officials refusing to cooperate with investigators, more connections with solar company cronyism deals, the poll showing Cain behind Obama by 4 lousy points, Palestinians burning Mr. President in effigy (well, in fairness they do that to all the presidents)…did I miss anything?

scalleywag on September 29, 2011 at 9:08 PM

canopfor on September 29, 2011 at 9:02 PM

Thanks Canopfor you are very good at getting info out. Is times Allah or you beat me to the punch by seconds over news.

William Amos on September 29, 2011 at 9:09 PM

Too bad Woodward and Bernstein are busy with “Fast and Furious”, or this level of corruption could really bring down the Obowma administration…

… Oh, wait!

Seven Percent Solution on September 29, 2011 at 9:10 PM

“Exit question via Guy Benson: Is it time to broaden the investigation to other federal agencies? Hmmmm.”

How much did this credit of 60% verse 30% credit cost taxpayers? Also this means that even with taxpayers paying 60% of the cost of their product even before we gave them the first loan, they still would have gone bankrupt in Dec 2010 without more taxpayer money. Heads need to roll over the criminal giveaway of taxpayer money.

JeffinSac on September 29, 2011 at 9:11 PM

did I miss anything?

scalleywag on September 29, 2011 at 9:08 PM

Moochelle has to shop at Target now?

Knucklehead on September 29, 2011 at 9:13 PM

Btw,meanwhile,the Tea Party is Demonized,as the “Presidents
Problem”,and yet,the Liberals keep getting away with the ex
cuses and scape-goating,while African Americans are at 16%
Unemployment numbers,

and this kind of Fraud/Corruption never reachs their eyes or
ears!!

canopfor on September 29, 2011 at 9:13 PM

What the hell do you expect out of these thugs? They cook up schemes to frame the American people that has produced nothing but a pile of corpses, what’s a little cheating with the taxpayer’s money in comparison?

PBHO is a nightmare that we can’t wake up from and it’s only going to get worse as he gets more desperate at his falling popularity.

I wonder if AP would allow me to call PBHO “Ogabe” again, because the similarities between the two thugs are becoming more concrete by the day.

Bishop on September 29, 2011 at 9:14 PM

What is the last date for a primary challenger for Obama to file to be on the ballot in the various states?

txmomof6 on September 29, 2011 at 9:14 PM

If the GOP’ers don’t mention this in any interviews, whether or asked or not, then we’ll know the fix is in.

SouthernGent on September 29, 2011 at 9:18 PM

Now I know why I spend a lot of time on HA—-Every few hours there is a new turd surprise in the headlines.
Why did our “representatives” not squawk about the most recent loans just this week? Oh, because they are on vacation loping their mules.

arnold ziffel on September 29, 2011 at 9:19 PM

What are a few broken laws amongst campaign contributors?

It’s not like anyone got killed, right?

Chip on September 29, 2011 at 8:52 PM

And even if they did, it was only a few hundred Mexicans, anyway.

It’s not like any Americans got killed, right?

Purple Fury on September 29, 2011 at 9:19 PM

Hey! The program is called “Friends of Obama”. Ya gotta give in order to get. And Barry needs the campaign money.

GarandFan on September 29, 2011 at 9:20 PM

canopfor on September 29, 2011 at 9:02 PM
===========================================
Thanks Canopfor you are very good at getting info out. Is times Allah or you beat me to the punch by seconds over news.

William Amos on September 29, 2011 at 9:09 PM

William Amos:Take a look at Chu’s face,with Obama in the background
and he looks like a deer in the headlights in the pic
ture!

On the news gathering,not everyone has time for that
endeavor,but,hey,the right googly search sure does
help!

I stumbled on that link,searching for Obama’s Campaign
cash trail,and it starts at his Bundlers!:)

canopfor on September 29, 2011 at 9:20 PM

What is the last date for a primary challenger for Obama to file to be on the ballot in the various states?
txmomof6 on September 29, 2011 at 9:14 PM

If there were a single patriot anywhere in the demorat party who isn’t a PBHO bootlicker, this would be the time to come forward. Even if they didn’t beat PBHO to take the nomination, just grab the opportunity to blast the man with all of these scandals, make the fud explain it all in front of a live debate audience.

Bishop on September 29, 2011 at 9:21 PM

It’s time to shut down Obama’s reckless spending. The Republican leadership should be raising hell about this.

GaltBlvnAtty on September 29, 2011 at 9:22 PM

Trouble Ahead

Key West Reader on September 29, 2011 at 9:23 PM

Bishop on September 29, 2011 at 9:21 PM

And be labeled a racist over and over for doing so?

Knucklehead on September 29, 2011 at 9:23 PM

PBHO is a nightmare that we can’t wake up from and it’s only going to get worse as he gets more desperate at his falling popularity.

Bishop on September 29, 2011 at 9:14 PM

Bishop:Bingo,and he seems to get more embolden to boot!

Of course,he does have the DOJ,in his Chicagoan
back pocket!:)

canopfor on September 29, 2011 at 9:26 PM

And be labeled a racist over and over for doing so?
Knucklehead on September 29, 2011 at 9:23 PM

Yah which is why I said they would have to be a patriot, because only a patriot would put the nation before themselves to stop the criminal sitting in the White House, or at least cripple PBHO’s chances of getting reelected.

Bishop on September 29, 2011 at 9:28 PM

Supertramp – Live ’88 – 13/13 – Crime Of The Century (HD)
**********************************************************

http://www.youtube.com/watch?v=yGlPFv0VUDM&feature=related

canopfor on September 29, 2011 at 9:30 PM

Bishop on September 29, 2011 at 9:21 PM

There’s not one nationally and few at a local level. Probably the last one was Zell Miller, and he turned out the lights on the Dem Party in 2004 when he gave a speech for GWB.

INC on September 29, 2011 at 9:31 PM

Bishop on September 29, 2011 at 9:21 PM
Knucklehead on September 29, 2011 at 9:23 PM
You guys are too nice and too patriotic. I was thinking what was the last date, so that when it passes, I can enjoy the despair on their faces when they realize they are stuck with him til November and noone is going to rescue them with a primary challenge.

txmomof6 on September 29, 2011 at 9:32 PM

Too bad Woodward and Bernstein are busy with “Fast and Furious”, or this level of corruption could really bring down the Obowma administration…

… Oh, wait!

Seven Percent Solution on September 29, 2011 at 9:10 PM

Seven Percent Solution:Intersting,a Solyndra DEEP THROATER eh!:)

canopfor on September 29, 2011 at 9:33 PM

I feel sorry for Obama.

Key West Reader on September 29, 2011 at 9:33 PM

Yah which is why I said they would have to be a patriot, because only a patriot would put the nation before themselves to stop the criminal sitting in the White House, or at least cripple PBHO’s chances of getting reelected.

Bishop on September 29, 2011 at 9:28 PM

I was just outside talking to my Libtard neighbor who’s working for the Obama campaign. There is something in that new book, Confidence Men that they are scared to death of.

I think I may read it and see what the fuss is all about. They are also worried about Herman Cain.

Knucklehead on September 29, 2011 at 9:35 PM

I feel sorry for Obama.

Key West Reader on September 29, 2011 at 9:33 PM

The feeling is not mutual I am sure. He and his team are counting on the sympathy vote.

txmomof6 on September 29, 2011 at 9:36 PM

canopfor on September 29, 2011 at 9:30 PM

Yaaar.

Key West Reader on September 29, 2011 at 9:36 PM

Knucklehead on September 29, 2011 at 9:35 PM

I will have to look into that book. I tried reading “Berlin 1961″ (correct title ?) and couldn’t get past the first few pages where the author misidentified the type of Russian tanks on the border. Stupid I know, but I just hate that sort of thing…I’m weird that way.

Did you ask your leftonian neighbor what they think about Gunwalker?

Bishop on September 29, 2011 at 9:39 PM

The feeling is not mutual I am sure. He and his team are counting on the sympathy vote.

txmomof6 on September 29, 2011 at 9:36 PM

Let’s just say that this pipsqueak mofoahoe is severely testing my faith.

I just can’t respecet him. I just can’t. And I’m not sorry for it. First time in my life.

I

Just

Can’t

Key West Reader on September 29, 2011 at 9:39 PM

The headline says it all,investigations where art thou!
——————————————————–

The 2012 Vote

Obama Rewards Big Bundlers with Jobs, Contracts, Stimulus Money, More….
June 22 2011
*************

http://www.thecuttingedgenews.com/index.php?article=52265&pageid=89&pagename=Features

canopfor on September 29, 2011 at 9:40 PM

I feel sorry for Obama.
Key West Reader on September 29, 2011 at 9:33 PM

Not me, not an ounce of sympathy for the man. PBHO is a thug, a snob, and a pompous douchebag; he asked for the job and is now treating it like his own little duchy.

Bishop on September 29, 2011 at 9:41 PM

canopfor on September 29, 2011 at 9:30 PM
Yaaar.

Key West Reader on September 29, 2011 at 9:36 PM

Key West Reader:Welcome to Animal Farm,in Brazil,the year is 1984,
and your Airline TSA,is Midnight Express,with,
Moroder!!:)
==============================

Giorgio Moroder ♫ Chase (theme from Midnight Express)
*****************************************************

http://www.youtube.com/watch?v=Akyx5iu_z8Y

canopfor on September 29, 2011 at 9:44 PM

Key West Reader on September 29, 2011 at 9:39 PM
I told another friend earlier today when talking about the Perdue remarks about not having an election for awhile that the expectation of an election in Nov.2012 is the only thing some people are holding out hope for. Literally hanging on by their fingernails to make it til then. Depressing really.

txmomof6 on September 29, 2011 at 9:45 PM

Why they needed extra production space

Well, let’s wait and see who gets the building in the fire-sale and then the price it is sold for.

Dusty on September 29, 2011 at 9:48 PM

Bishop on September 29, 2011 at 9:39 PM

I loved “Berlin 1961″, it really filled in the blanks of what I didn’t remember when I was 11 years old. I know nothing about tanks, but since I visited Check Point Charley in May while I was in Berlin, it gave me great perspective on how small that street and the intersecting streets are.

Me and the neighbor didn’t get into F & F.

Knucklehead on September 29, 2011 at 9:48 PM

[Dusty on September 29, 2011 at 9:48 PM]

I mean it’s not some Irish cottage, but it certainly could become one.

Dusty on September 29, 2011 at 9:49 PM

Dusty on September 29, 2011 at 9:48 PM

Don’t forget the cool robots.

txmomof6 on September 29, 2011 at 9:50 PM

Not only do these “green” boondoggles reek of political cronyism and profiteering at the taxpayers’ expense, they smack of criminal deceit. How much of the nonsense, too, can be attributed to the fact that too many in this administration have absolutely no backgrounds in business? When academics, lawyers, and professional politicians manipulate the markets, there are too many opportunities for naivete, stupidity, and corruption.

onlineanalyst on September 29, 2011 at 9:57 PM

Why they needed extra production space when no one was buying their overpriced solar units, I simply don’t know

Duh, they didn’t need more production space…..they needed more “sing and dance along with Disney robots” and “take a spa treatment” space.

cthulhu on September 29, 2011 at 10:02 PM

No problem — the execs probably got some Obamacrat attorneys to arrange an airtight golden parachute for them, including perpetual donations to Democrats… So it’s all good…

drfredc on September 29, 2011 at 10:28 PM

I have no sympathy for Obama, just as I would not for anyone else who attempts to destroy our country. He deserves no quarter.

GaltBlvnAtty on September 29, 2011 at 10:30 PM

I loved “Berlin 1961″, it really filled in the blanks of what I didn’t remember when I was 11 years old. I know nothing about tanks, but since I visited Check Point Charley in May while I was in Berlin, it gave me great perspective on how small that street and the intersecting streets are.

I lived in Stuttgart in 1959-62, as a dependent. The summer of 1961, after my junior year in high school, was pretty exciting, with the Berlin wall going up and the home run chase. We wondered if we would all be shipped back to the states.
I visited East Berlin over the Christmas holidays in 1960, the last Christmas before the wall went up. We Americans were allowed to travel to Berlin through East Germany, by train, at night, with all the shades pulled down.

GaltBlvnAtty on September 29, 2011 at 10:38 PM

All this nonsense about Solyndra is piffle. The important issue is Gibson Guitars. Bring the full force of the Feds down on Gibson. Make them suffer. Single out their CEO. Stand up for the rights of workers in Madagascar…

Dhuka on September 30, 2011 at 12:35 AM