White House Almost Gave Solyndra Another Loan
Even as auditors warned the company was in trouble
By Kevin Spak, Newser User
Posted Oct 6, 2011 9:17 AM CDT
Ben Bierman (left) and Chris Gronet (right) explain solar technology to U.S. President Barack Obama on a tour of the Solyndra solar panel company May 26, 2010 in Fremont, California.   (Getty Images)

(Newser) – Just days after Solyndra received its $535 million government-backed loan in September 2009 it applied for another one—this time for a mere $469 million—and the Energy Department put that request on a fast-tracked priority list, sources tell the Washington Post. The department was still seriously considering the request through May 2010, even as auditors warned that the company was on the verge of collapse, according to emails released by Congressional investigators.

By then, career Office of Budget Management workers were mocking the company’s finances. “Possible to close and default on one [loan] before closing on a second??? Could be a new record,” one OMB analyst quipped in an email. The Energy Department says it formally dropped the proposal when Solyndra warned the government that it might have to liquidate in October 2010. But it denies pushing hard for the loan, saying it had “only barely begun” its due diligence.

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Showing 3 of 21 comments
apostrophe
Oct 7, 2011 2:15 AM CDT
This is a story about something that didn't happen. The point is Solyndra never received the second loan, and that the Energy Department wisely listened to their advisors. Dumb decisions are "almost" made all the time, the point is that they are labeled that way after their due consideration.
b1izzard
Oct 6, 2011 11:09 PM CDT
Pissed away half a billion dollars in one year. The place only employed 1100 people. That is nearly half a million bucks per job. All lost on a company that was supposed to make a profit. You can't demand an industry arises when there is no demand for what they sell. This president has absolutely no clue about basis high school economics. He is so far below the position.
Watching4theMODS
Oct 6, 2011 4:34 PM CDT
Bush Cheney gave Halliburton billions in no bid contracts even when they were caught red handed stealing in Iraq. Never heard a word from the right wing then and this was BILLIONS.