To no one’s surprise, Obama treated his donors well after the 2008 election. He may not have built a small business that employed people, but he’s sure good at building a culture of corruption that ends in more folks being sent to the unemployment line. However, for a candidate who campaigned as a transformational figure, he is rather vanilla. Washington, according to Obama, is still broken and the economic picture hasn’t changed. The allegations of crony capitalism hasn’t gone away as indicated with the No More Solyndras Act being currently reviewed in the House Energy and Commerce Committee. However, after more light was cast on the subject, we find a disturbing cycle of corruption.
Emails uncovered by Congressional investigators reveal that Solyndra helped secure its $535 million loan guarantee with the help of Steve Spinner, another prominent Obama donor. After bundling more than $500,000 for Obama in 2008, Spinner was named to the White House transition team and later served as “chief strategic operations officer” of the DOE loan program that funded Solyndra.
Spinner’s wife Allison worked for a law firm that represented Solyndra and several other green energy outfits that applied for taxpayer funding. Records show that her firm, Wilson Sonsini Goodrich & Rosati, received $2.4 million in federal funds in legal fees associated with Solyndra’s loan application.
In fact, 70% of all the Department of Energy loans went to Obama donors.
Stiles also details that:
In several cases, including Solyndra, advancing the president’s green energy agenda went hand in hand with providing financial payoffs to prominent campaign donors.
California investment guru John Doerr, for example, has personally contributed more than $170,000 to Democratic campaigns and committees since 2008, and more than $2 million over the past 20 years. His investment firm, Kleiner Perkins Caufield & Byers (KPCB), which lists former Vice President Al Gore as a partner, has given more than $1 million to Democrats since 2005.
An early and outspoken advocate for federal investment in “green” technology, Doerr was named to the president’s Economic Recovery Advisory Board in 2009, where he helped craft the $787 billion stimulus package. Of the 27 companies list in KPCB’s “green-tech” portfolio, 16 received some form of taxpayer support.
Another prominent Obama donor who has benefitted handsomely from the president’s policies is Steve Westly. A frequent guest at White House events and state dinners, Westley served as California co-chair and a National Finance Committee member of Obama’s 2008 campaign and currently sits on the DOE’s Energy Advisory Board.
He has bundled at least $700,000 in campaign donations for Obama since 2008 and personally given about $260,000 to Democratic campaigns and committees since 2007.
Westly’s investment firm, the Westly Group, had a financial stake in four green energy companies that received more than half a billion dollars in federal funding in 2009. The group’s website once touted the firm as being “uniquely positioned” to take advantage of the influx of taxpayer funding in green technology, and currently notes that “To win in the clean technology space, a company must navigate the halls of government.”
In the end, the clean energy agenda yielded massive failure.
Back in January:
“CBS News counted 12 clean energy companies that are having trouble after collectively being approved for more than $6.5 billion in federal assistance. Five have filed for bankruptcy: The junk bond-rated Beacon, Evergreen Solar, SpectraWatt, AES’ subsidiary Eastern Energy and Solyndra.
SunPower landed a deal linked to a $1.2 billion loan guarantee last fall, after a French oil company took it over. On its last financial statement, SunPower owed more than it was worth.
First Solar was the biggest S&P 500 loser in 2011 and its CEO was cut loose – even as taxpayers were forced to back a whopping $3 billion in company loans.
Nobody from the Energy Department would agree to an interview.”
How safe were the loans?
“[Economist] Peter Morici replied… It’s, it is a junk bond…but it’s not even a good junk bond. It’s well below investment grade.
Was the Energy Department investing tax dollars in something that’s not even a good junk bond? Morici says yes.
This level of bond has about a 70 percent chance of failing in the long term,” he said.”
Does sounds like a sound investment for the American people? Furthermore, if we are able to win in November, a sustained accountability campaign amongst conservatives must take place to ensure such antics don’t occur under our leadership anymore After all, crony capitalism is a consequence of big government.