Treasury Department was skeptical of last minute Solyndra bailout

Rick Moran
And they questioned the motivations of private investors - investors who jumped ahead of the American taxpayer in line to get paid in any bankruptcy proceeding - who were pushing the bail out.

Reuters:

The Treasury Department took a hard line on last-ditch government rescue efforts for Solyndra in August, questioning the solar panel maker's financial projections and the motivations of private investors who were offering new cash, emails released on Friday showed.

New internal Treasury emails released by the House of Representatives Energy and Commerce Committee on Friday showed skepticism about two plans floated by the Energy Department as it sought to help the company, which had run out of cash.

The emails shed new light on concerns by officials outside the Energy Department about the risk of the $535 million loan to Solyndra, which filed for bankruptcy on September 6, and was raided by the FBI.

Republicans who are spearheading a probe of the loan have criticized the Obama administration over the Solyndra loan and have noted that investors in the company had contributed to President Barack Obama's election campaign.

They have obtained more than 70,000 pages of emails in their probe so far. While the Energy and Treasury departments and Office of Management and Budget will continue to provide documents, the White House said it would not.

"There is nothing in the documents ... that the White House intervened in the Solyndra loan guarantee to benefit a campaign contributor," White House Counsel Kathryn Ruemmler said in a letter to the committee on Friday.

The White House is probably correct about there being nothing in the emails that would implciate them. It would have been stupid to put anything in writing. But the Energy Department was well aware of who the investors were and no doubt also knew of the political connection to the Obama White House.

All of this transpired in late August - just a few days before Solyndra closed its doors on September 6. By that time, the company was too far gone and encouraging investors to continue to prop it up while being guaranteed first crack at Solyndra's assets in any banruptcy proceeding smacks of political favoritsm.

What's in those emails again, Mr. Obama?


And they questioned the motivations of private investors - investors who jumped ahead of the American taxpayer in line to get paid in any bankruptcy proceeding - who were pushing the bail out.

Reuters:

The Treasury Department took a hard line on last-ditch government rescue efforts for Solyndra in August, questioning the solar panel maker's financial projections and the motivations of private investors who were offering new cash, emails released on Friday showed.

New internal Treasury emails released by the House of Representatives Energy and Commerce Committee on Friday showed skepticism about two plans floated by the Energy Department as it sought to help the company, which had run out of cash.

The emails shed new light on concerns by officials outside the Energy Department about the risk of the $535 million loan to Solyndra, which filed for bankruptcy on September 6, and was raided by the FBI.

Republicans who are spearheading a probe of the loan have criticized the Obama administration over the Solyndra loan and have noted that investors in the company had contributed to President Barack Obama's election campaign.

They have obtained more than 70,000 pages of emails in their probe so far. While the Energy and Treasury departments and Office of Management and Budget will continue to provide documents, the White House said it would not.

"There is nothing in the documents ... that the White House intervened in the Solyndra loan guarantee to benefit a campaign contributor," White House Counsel Kathryn Ruemmler said in a letter to the committee on Friday.

The White House is probably correct about there being nothing in the emails that would implciate them. It would have been stupid to put anything in writing. But the Energy Department was well aware of who the investors were and no doubt also knew of the political connection to the Obama White House.

All of this transpired in late August - just a few days before Solyndra closed its doors on September 6. By that time, the company was too far gone and encouraging investors to continue to prop it up while being guaranteed first crack at Solyndra's assets in any banruptcy proceeding smacks of political favoritsm.

What's in those emails again, Mr. Obama?