Solyndra - the administration's $500 million solar eclipse

       By now if you listen to the tube while you are doing something truly productive, you are beginning to hear the rumblings of Solyndra-gate. 

The circumstances surrounding the $500 million Obama administration loan to Solyndra followed by the company’s bankruptcy could be the straw that ultimately breaks Obama’s back. It will a long straw and will take many months of unwinding. I suspect that the GOP POTUS candidates will help with the unwinding process. The facts are still unfolding, but here is what I discovered so far. Sometime in 2010, Solyndra was officially approved by the DOE for a $500 million dollar loan. If the wealthy investors, large investment banks and prominent venture capital firms would not put more money into the deal in 2010, why would Obama? 

Solyndra took the money and spent it. In January and February of 2011, Solyndra executives explained to the DOE they were in financial trouble again. They were in trouble according to their auditors when they took the $500 million. According to the report I read, 6 months after the DOE approved the loan, the auditors raised a question about Solyndra’s capability to continue as a “going concern.” This is accounting code for you are out of cash, the end is likely near.

I just read the S-1 proposal, dated December 18,2009 for Solyndra. Google it and read it if you have the time. It is a work of art. S1s are what companies file with the SEC with an intent to go public-code for selling shares to other people. The document was impressive. The investors, the management, the board of directors, the lawyers, and the auditors were the resumes of our country's finest brains and experience. Our nations finest universities, wealthiest citizens and brightest executives were all represented. Just one note. At a time, when the company was posting losses of $100 million dollars per year, the execs were pulling down compensation packages of $300,000-500,000 per year.

I frankly did not know the DOE could make loans of $500 million. I do not believe it is prudent on my part to mention any names of who would have profited by this deal if it had been successful. Their names will be in the headlines without my help. But know this fact. This is a big story, about big people from big firms, with what may be a big ending to a big administration that is in another big mess. I know many home owners and out of work American citizens who could have used a part of that $500 million dollar loan. 

       Couldn’t you?  Stay with me on this story. It will be a wild ride.