Whoops .... another stimulus failure / another failed policy.
Change we can believe in .......
[h=3]Solar Firm Goes Bankrupt After Taking $535 Million In Stimulus Funds.[/h]The
CBS Evening News (8/31, story 4, 0:30, Pelley) reported, "The President says one place to find new jobs is the alternative energy industry. ... But today, we learned that the company Solyndra, is filing for bankruptcy, and laying off 1100 workers."
Reports tend to cast the company's bankruptcy as a blow to the Administration, which gave the company $535 million in Department of Energy loan guarantees. For example, the
San Francisco Chronicle (9/1, Baker, Said) characterizes the move as "a blow to the Obama administration's efforts to create green jobs." According to the Chronicle, it "also represents a high-profile failure for a federal stimulus program that gives loan guarantees to green-tech manufacturers."
The
San Jose Mercury News (9/1, Taugher, Delevett) says that the company's failure "may signal a shaky future for a green jobs sector targeted for government stimulus spending."
On the front page of its Business Day section, the
New York Times (9/1, B1, Wald, Subscription Publication) says that "the failure of the company - and the loss to taxpayers - is likely to renew the debate in Washington about the wisdom of clean energy subsidies and loan guarantees." In a statement Wednesday, "Solyndra said its business had run into trouble because of difficult global business conditions, including slowing demand for solar panels, and stiff competition." Meanwhile, the DOE "said China's subsidies to its solar industry were threatening the ability of Solyndra and other American manufacturers to compete."
According to the
Washington Post (9/1, Stephens, Leonnig), "Although Wednesday's announcement came as a surprise, House Republicans and government auditors had questioned the wisdom of the administration's loan guarantees to the company, backed by capital from billionaire Democratic fundraiser George Kaiser. In July, a House subcommittee subpoenaed White House documents related to the guarantee, and after Wednesday's developments, Republican lawmakers vowed to continue investigating." Meanwhile, in a statement, DOE spokesman Dan Leistikow said, "We have always recognized that not every one of the innovative companies supported by our loans and loan guarantees would succeed," adding, "But we can't stop investing in game-changing technologies that are key to America's leadership in the global economy."
While many reports say that Solyndra received $535 million in loan guarantees from the DOE,
Bloomberg News (9/1, Goossens) says that DOE press secretary Damien LaVera said in an email Tuesday that "the company has borrowed $527 million of the $535 million." According to Bloomberg, "Solyndra plans to include the Energy Department loan guarantee in its bankruptcy filing."