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Obama Administration Considered a Bailout for Solyndra Before They Filed Bankruptcy.
According to an article published by Fox News:
WASHINGTON – A Republican-led House panel voted Thursday to subpoena the White House for records related to Solyndra, the solar company that collapsed after receiving a $528 million loan.
The
House Energy and Commerce Committee approved the resolution 14-9 after
Democrats tried to delay the vote during a contentious debate.
Democrats argued the resolution was
too broad and gave Chairman Fred Upton too much power. But Republicans
said a subpoena was necessary because the White House has denied or
delayed requests for thousands of documents related to Solyndra.
Upton, a Michigan Republican, said
getting White House documents on Solyndra was like "extracting a tooth
without anesthesia" -- painful and time-consuming.
The White House immediately slammed
the vote, saying it has "cooperated extensively with the committee's
investigation by producing over 85,000 pages of documents, including
20,000 pages produced just yesterday afternoon."
"And all of the materials that have
been disclosed affirm what we said on Day One: this was a merit-based
decision made by the Department of Energy," White House spokesman Eric
Schultz said.
"We'd like to see as much passion in
House Republicans for creating jobs as we see in this investigation,"
he said. "We are disappointed that the committee has refused to discuss
their requests with us in good faith, and has instead chosen a
partisan route, proceeding with subpoenas that are unprecedented and
unwarranted."
Congressional Republicans began investigating Solyndra months before the California company filed for bankruptcy
protection in September and laid off 1,100 workers. The bankruptcy
proved to be embarrassing for the White House amid revelations that
federal officials were warned it had problems but nonetheless continued
to support it, and sent President Obama to visit the company and praise
it publicly.
Rep. Cliff Stearns, R-Fla., chairman
of the House Energy and Commerce Oversight Subcommittee, said the
subpoena was necessary because the White House is "slow-walking" all
requests for information.
"We want to get to the bottom of this," he said. "What is there about the word 'slow-walk' that the Democrats don't understand?"
Rep. Diana DeGette, the top Democrat
on the House Energy and Commerce Oversight Subcommittee, said that the
subpoena could stymie the investigation if the White House decides to
exert executive privilege.
"When you
send out such a broad subpoena, it will just delay proceedings even
more," she said, adding that she believes Republicans intend to use the
investigation for political purposes.
Rep. Ed Markey, D-Mass., accused
Republicans of hypocrisy because another GOP-led committee voted against
his motion to subpoena the executives of oil companies involved in the
BP oil spill who refused to appear at a hearing.
"While insisting on full disclosure
and complete transparency from the White House on Solyndra, Republicans
have put the CEOs from the companies responsible for the worst
offshore oil spill in our history into a witness protection program
where they are apparently going to be immune from any congressional or
public scrutiny," he said.
"This is not about using our
subpoena power, this is about fossil fuel and nuclear interests wanting
fewer Americans using solar power," he added.
On Wednesday, the government
released nearly 1,200 pages of documents that revealed the Obama
administration considered a bailout of Solyndra days before it
collapsed.
The bailout that would have provided
an infusion of cash and a new board of directors, including two
directors appointed by the Energy Department.
Officials rejected the plan, which
was recommended in August by the investment banking firm Lazard Ltd.
Lazard was paid $1 million for analyzing options related to the
faltering company.
The bailout plan considered by the
Energy Department would have converted much of the U.S. loan to equity
in the company worth as much as 40 percent, the emails show.
Lazard was hired to look at Solyndra's financing
after the company received a $528 million loan in 2009 and $69 million
in private money earlier this year in a restructuring deal approved by
the Obama administration. Under the second deal, the private investors
moved ahead of U.S. taxpayers in case of a default on the loan, a fact
that GOP investigators have sharply criticized.
Without an infusion of new cash,
Lazard wrote in an Aug. 17 memo to the Energy Department, Solyndra was
almost certain to fail, which would "likely result in little recovery
to the DOE." The department rejected the refinancing plan sometime
after Aug. 28, and Solyndra shut its doors on Aug. 31.
White House Chief of Staff Bill
Daley announced last week that he had ordered an independent review of
similar loans made by the Energy Department.
He said the review by former
Treasury official Herb Allison would assess the health of more than two
dozen other renewable energy loans and loan guarantees made by the
Energy Department program that supported Solyndra.
Allison, who oversaw the Troubled Asset Relief Program, part of the 2008 Wall Street
bailout, is not looking at the Solyndra case, officials said. Instead
he will evaluate other loans worth tens of billions of dollars and
recommend steps to stabilize them if they appear to have similar
problems.
Energy Secretary Steven Chu has said
he welcomes the White House review. Chu is scheduled to testify Nov.
17 before the energy panel.
The Associated Press contributed to this report.
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