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All Worked Up Over Taxpayer Oversight

The Washington Post has an important story this morning detailing more Obama administration officials conducting business on private emails and clearly taking into account political considerations in the awarding of taxpayer dollars.

Read More: The Washington Post - Energy Department Loan Program Staffers Were Warned Not To Use Personal E-Mail

Department Of Energy Loan Program Director Jonathan Silver Snaps On Staffer Over Using Personal Email Account: “That Makes Them Supoenable.” “Don’t ever send an email on doe email with private addresses. That makes them supoenable.” (Email From Jonathan Silver To Morgan Wright, 8/21/11)

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Did Obama Turn A Blind Eye To Solyndra Warnings? 

Every Obama Chief Of Staff, Staffers Across Numerous Agencies, Government Watchdogs, Even Solyndra Investors Knew That The Risks Were Too High For Taxpayers

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Larry Summers: “GOV Is A Crappy VC”

Larry Summers Made The Point That The Government Is A “Crappy” Venture Capitalist.  “Thanks brad.  This is very helpful and I relate to your points many of which I have made internally.  I relate well to your view that gov is a crappy vc and if u were closer to it you’d feel more strongly.  But suppose we think there are all koinds [sic] of externalities to renewable investments.  What should we do?  [REDACTED paragraph].”  (Email From Lawrence Summers To Brad Jones, f. 315, 12/26/09)

 In His Email To Summers, Redpoint Ventures’ Brad Jones Recognized The Spending On Clean Energy Was “Haphazard” And That The Recovery Act Spending Was Generating “Little Benefit.”  “As for policy, I am less enthusiastic about what the government has done.  I certainly think a stimulus was needed, and extending unemployment benefits and providing temporary help to those in need was good both as a benevolent policy and as a way to put cash in the system that would be spent right away.  But much of the other spending is generating little benefit and the long term debt of the US is troubling.  The job creation has been mostly public sector, not great in terms of growing the economy.  The allocation of spending to clean energy is haphazard; the government is just not well equipped to decide which companies should get the money and how much.  That is, after all, what my industry does, and there are lots of mechanisms in place to see that it is done right.  One of our solar companies with revenues of less than $100 million (and not yet profitable) received a government loan of $580 million; while that is good for us, I can’t imagine it’s a good way for the government to use taxpayer money (I’d prefer my opinion about that specific company be between us).  Every administration seems to feel like it knows better than the private markets to allocate capital, and I’ve seen that to be true.”  (Email From Brad Jones Of Redpoint Ventures To Larry Summers, f. 314, 12/26/09)




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Solyndra: “OVP And WH Breathing Down My Neck On This”

Obama Fundraiser And Loan Program Adviser Steve Spinner Pressured The OMB On Solyndra’s Loan: “OVP and WH Breathing Down My Neck On This…” “Any word from OMB? I have the OVP and WH breathing down my neck on this…just want to make sure we get their questions. They are getting itchy to get involved if needed. I don’t want that…” (Email From Steve Spinner To Kelly Colyar, 8/28/09)

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Solyndra’s “You Didn’t Build That” Moment

White House Aide Aditya Kumar Predicted The Solyndra Story Would Prove That The Government Is What “Can Bring The Private Sector Along.”  “Dan: Some background.  This is a Recovery Act Grant. Details: Will be first DoE Loan Guarantee since 1980s (since the geothermal grants in the 80s, I believe).  Total amount will be $535M (with a $107M govt subsidy).  This is a solar panel manufacturing company in Fremont, CA. Story is two things: JOBS: Solyndra estimates this will create thousands of jobs (over 3,000K was on estimate I saw but not sure how dated that was); When Government Plays a Part, It can Bring the Private Sector Along: Solyndra has secured over large amounts in private capital which is a story in itself.”  (Aditya Kumar, Director Of Special Projects In The Office Of Chief Of Staff Rahm Emanuel, E-mail To Danielle M. Crutchfield, Alyssa M. Mastromonaco, Elizabeth Jarvis-Shean, And Dan Pfeiffer, f. 230, 8/19/09)

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Solyndra: “Getting Business From Uncle Sam”

Email From Tom Baruch To White House Staff: Obama Promised Solyndra CEO He Would Look Into Putting Their Panels On Government Buildings. “Getting business from Uncle Sam is a principle element of Solyndra’s channel strategy. When Obama visited Solyndra in June 2010, Chris Gronet spoke very openly about the need for installation of Solyndra’s rooftop solar on U.S. government buildings. I heard Obama actually promise Chris that he would look into it when he returned to Washington.” (Email From Tom Baruch, 8/10/10)

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Solyndra CEO Calls Obama Admin. “Bank Of Washington”

Solyndra CEO Chris Gronet: “The Bank Of Washington continues to help us!” (Email From Chris Gronet, 10/02/09)

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Solyndra Figures Appear At Obama’s Fundraiser

ABC News: “Obama Fundraises With Players in Solyndra Scandal” (Devin Dwyer, “Obama Fundraises With Players In Solyndra Scandal,” ABC News’ “Political Punch,”, 7/23/12)

Politico : “Solyndra Players At Obama Fundraiser” (Darren Samuelson and Reid J. Epstein, “Solyndra Players At Obama Fundraiser,” Politico’s 44,” 7/23/12)

Politico : “Solyndra Hovers At Obama Event” (Alexander Burns, “Solyndra Hovers At Obama Event,” Politico’s Burns & Haberman,” 7/23/12)

The Washington Times : “Solyndra Figures Attend Swank Obama Fundraiser” (Dave Boyer, “Solyndra Figures Attend Swank Obama Fundraiser,” The Washington Times, 7/24/12)

San Francisco Chronicle : “GOP Slams Steve Westly For Juggling Lemons At President Obama Piedmont Fundraiser” (Joe Garofoli, “GOP Slams Steve Westly For Juggling Lemons At President Obama Piedmont Fundraiser,” San Francisco Chronicle , 7/23/12)

At A Fundraiser Last Night, Obama “Hobnobbed” With “Two Figures At The Center Of The Solyndra Loan Controversy.” “At an exclusive re-election fundraiser tonight, President Obama hobnobbed with 60 of his wealthiest supporters, including two figures at the center of the Solyndra loan controversy.” (Devin Dwyer, “Obama Fundraises With Players In Solyndra Scandal,” ABC News’ “Political Punch,”, 7/23/12)

  • Steve Westly And Matt Rogers Were Both In Attendance. “Steve Westly, a Silicon Valley venture capitalist, was one of the first to raise red flags about the administration’s support for a $500 million loan to Solyndra, the solar energy start-up that later went bankrupt. He wrote directly to senior Obama adviser Valerie Jarrett in 2010 to raise concerns about the company’s viability ahead of the president’s high-profile visit that year. Matt Rogers, a former senior adviser at the Department of Energy, played a key role in approving Solyndra’s loan as part of the stimulus plan.” (Devin Dwyer, “Obama Fundraises With Players In Solyndra Scandal,” ABC News’ “Political Punch,”, 7/23/12)

Westly And Rogers Were Involved In Solyndra’s Loan Program

Mega-Bundler Steve Westly E-mailed With Valerie Jarrett Warning Her Of Solyndra’s Potential Political Fallout. “Steve Westly, a California venture capitalist who raised more than $500,000 for Obama’s campaign, exchanged emails with Valerie Jarrett, one of Obama’s closest advisers, to warn her about political fallout that could ensue if the president visited the factory being built by Solyndra.” (Matthew Moska and Ronnie Greene, “Obama on Solyndra: ‘Hindsight Is Always 20/20,’” ABC News, 10/3/11)

  • Westly E-Mail To Jarrett: “Could you perhaps check with [the Energy Department] to make sure they’re comfortable with the company? I just want to help protect the president from anything that could result in negative or unfair press.” (Matthew Mosk and Ronnie Greene, “Obama on Solyndra: ‘Hindsight Is Always 20/20,’” ABC News, 10/3/11)
  • Westly E-mail To Jarrett: “If it’s too late to change/postpone the meeting, the president should be careful about unrealistic/optimistic forecasts that could haunt him in the next 18 months if Solyndra hits the wall, files for bankruptcy.” (Matthew Mosk and Ronnie Greene, “Obama on Solyndra: ‘Hindsight Is Always 20/20,’”ABC News, 10/3/11)

Foundation Capital’s Paul Holland Described Matt Rogers As “A Hooker Dropped Into A Prison Exercise Yard.” “Yeah, that’s big question. So I guess I would just peel it back to a couple of weeks before I was at the Wall Street Journal’s Economics Conference and Matt Rogers who probably a number of you know came in and was doing a talk and this is going to be a little off collar so I don’t want to get in trouble for this. He came in to do his talk and opened his talk with, ‘I’m Matt Rogers I am the Special Assistant to the Secretary of Energy and I have $134 billion that I have to disperse between now and the end of December.’ So upon hearing that I sent an email to my partners that said Matt Rogers is about to get treated like a hooker dropped into a prison exercise yard . And I had the lack of judgment to go up and share that with him and the other people who were all standing around him at the end of the talk and uh fortunately for me they all laughed and thought it was funny.” (Paul Holland, Remarks, Venture Capital Panel, Green:Net 09, 3/24/09)

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Lesson Learned: No More Solyndras

TODAY, CONGRESS QUESTIONED ENERGY DEPARTMENT ABOUT PROBLEMS WITH LOAN PROGRAMS THAT LEAVE TAXPAYERS ON THE HOOK FOR OBAMA’S GREEN ENERGY FAILURES

DOE Official Doesn’t Know How Much Was Loaned And Or How Much Taxpayers Will Get Back From Solyndra. Department of Energy admits that even though taxpayers put the most money on the line, they won’t be the first to get paid back by Solyndra.

DOE Official: Loan Program Wasn’t About Job Creation. Department of Energy: “By definition, they are not a multiplier for job creation.”

Democrat Rep. Henry Waxman Claims He’s “Sorry” About Solyndra. Democrat Rep. Henry Waxman (D-CA) doesn’t seem to be very sincere in his apology about taxpayers losing over $500 million on Solyndra.                                                                                                                               

Democrat Congresswoman: None Of Us Like The Idea Of Taxpayer Position Being Second on Solyndra. Democrat Rep. Diana DeGette: “None of us likes the idea of the taxpayer position being second to be honest because in a situation like the Solyndra situation where the company goes bankrupt, then the private lenders have a superior position to the taxpayers, and we don’t like that.”

DOE Says They Need To Be Able To Subordinate Taxpayers On Loans Like Solyndra. Department of Energy official insists that taxpayers should be subordinated on loans like Solyndra.

DOE Official Thinks Loan Program That Gave Us Solyndra Is “Enormous Success.” Department of Energy official says the loan program that gave us Solyndra is an “enormous success.”

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Treasury Department: Solyndra Loan Was Rushed

After months of testimony from various administration officials claiming that Solyndra received its loan Department of Energy Loan on merit, a new report says the Solyndra loan was rushed. A U.S. Department of Treasury audit released yesterday states it only had one day to complete its review of the $535 million loan guarantee before being rushed out the door by the Department of Energy to accommodate its press release announcing the administrations progress in funding green energy.

Bloomberg:Treasury Officials Given One Day To Review U.S. Solyndra Loan

Politico:Audit: Review Of Solyndra ‘Rushed’

The Hill:Treasury Report Calls Solyndra Loan Review ‘Rushed’

National Review Online:Treasury Audit: Solyndra Was A Rush Job