High-Profile California Entrepreneurial Bankruptcy

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High-Profile California Entrepreneurial Bankruptcy

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Until just a few weeks ago, I had never heard of a California company called Solyndra. Depending on which media source you pay attention to, Solyndra has become a household name. Politicians are scrambling to either disavow any knowledge of Solyndra or use Solyndra's $530 million stimulus loan to lay blame.

Republicans are leading the Solyndra feeding frenzy on Capitol Hill, suggesting the White House applied pressure to expedite the federal loan so the Obama administration could use the company to tout their green jobs initiative.

However, the company recently filed bankruptcy and is now the focus of an investigation by the FBI, Energy Department as well as the Treasury Inspector General's office. The investigation centers on financing of the loan by a little known Washington entity known as the Federal Financing Bank, a government lending institution that is under control of the Treasury Department.

After filing bankruptcy and closing operations, Sloyndra laid off over 1,100 California employees, adding even more jobless claims in a state that currently has unemployment of 12.4 percent--more bad news for a state devastated by a lousy economy and the on-going recession.

The Obama administration defends the Solyndra loan and suggests the California company was the victim of global economic trends. Ultimately U.S. taxpayers are left holding the bag for over one half billion dollars while many private investors that got in early have been repaid - with, it appears, money from the federal loan.

It appears Solyndra was doomed from the beginning and government officials were either negligent in their due diligence or looked the other way in order to facilitate partisan issues.

China is the primary concern for solar companies. The rogue world power continues to flood the market with cheap solar panels that sell for less than Solyndra's production costs.

How this mess will turn out is anyone's guess. Not only is it bad publicity for Obama's re-election bid, it is also a prime example of government waste. This California green job creator is one of many that has or will backfire.

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Tags: • taxpayers • lending • government • financing • investigation • initiative • stimulus • bankruptcy • solar panels • due diligence • government officials • private investors • economic trends • green jobs • obama administration •

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