May 14, 2012

SandBoxBlogs: Red State "What the Mainstream Media Isn’t Reporting About Solyndra "

'repmorgangriffith' diary:"After just a short time in Congress, I find myself more keenly aware of the research and reporting failures of the modern mainstream media.  If a story gets more depth and attention than the typical 10 second sound bite, I admit, I’m surprised.  Solyndra is no different.

There are a number of facts surrounding the Solyndra story that don’t seem to be getting any attention.  A significant part of the public outrage regarding the bankrupt company isn’t centered on their failed business model or external factors; it’s the millions of taxpayer dollars that the Obama Administration lost on Solyndra after the business was doomed.

After Solyndra defaulted and they knew Solyndra was in real financial trouble, Secretary Steven Chu’s Department of Energy (DOE) staff made a decision by December 10, 2010, to subordinate $75 million of taxpayer money so more private capital could be injected into Solyndra.  Subordination means that outside private investors are given superiority over taxpayers in the event of bankruptcy.  At that point, $440 million of the $535 million loan guarantee already had been pumped into the company.

By law Secretary Chu wasn’t allowed to subordinate the taxpayers’ money.  The Energy Policy Act of 2005 specifically states that the loan guarantee “shall be subject to the condition that the obligation is not subordinate to other financing.”  It was the clear intention of Congress that taxpayers should be reimbursed first.

For a company that had already been declared in default and had a collapsed business model because the Chinese were selling their solar panels for less, one might question the sanity of private investors who gambled on Solyndra in December of 2010.  Were they after Solyndra’s intellectual property (IP) rights?

 As a private investor and the dominant financier, could Argonaut’s support of President Obama have helped them secure Solyndra’s IP assets?...."  (Read more? Click title)

"Unapologetic pursuit and tracking of patterns within the news others make since 2010."

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