White House Set To Review Energy Department Loans
Oct 31st, 2011 @ 5:10 PM by Debbie Dragon
The White House is being criticized over an Energy Department loan made for over a half million dollars to Solyndra, Inc, a company that has now filed for bankruptcy. According to a Washington Post article the White House will be conducting an independent review of other loans made to companies similar to Solyndra in hopes to determine if other such loans may be in jeopardy.
The White House had the following to say:
“Today we are directing that an independent analysis be conducted of the current state of the Department of Energy loan portfolio, focusing on future loan monitoring and management,” White House chief of staff Bill Daley said. “While we continue to take steps to make sure the United States remains competitive in the 21st century energy economy, we must also ensure that we are strong stewards of taxpayer dollars.”
The sixty day review will focus on twelve other similarly made loans by the Energy Department to determine whether or not those loans are healthy. Heading up the investigation will be former Treasury official Herb Allison. Allison’s credentials include having been in charge of the Trouble Asset Relief Program during the Wall Street Bailout in 2008. The investigation will focus on billions of dollars in loans currently held by companies similar to Solyndra and will look to identify any potential problems early. After the evaluation, recommendations will be made to help stabilize these loans if necessary.
Loans like the one given to Solyndra are no longer being made due to the program funding ending this past September.
Obama is standing behind the loans and earlier this month he defended the loans at a news conference, saying
“the overall portfolio has been successful. It has allowed us to help companies, for example, start advanced battery manufacturing here in the United States. It’s helped to create jobs.”
White House Chief of Staff Dailey stood behind the president saying:
“The president is committed to investing in clean energy because he understands that the jobs developing and manufacturing these technologies will either be created here or in other countries.”
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.