The New York Times take on Solyndra scandal
October 17, 2011 § Leave a comment
House Examines Deal With Solyndra
The Energy Department may have made a decision without precedent when it allowed Solyndra, the now bankrupt solar technology company, to restructure its loans so private investors — not the government — would have first call on its assets in case of liquidation, two Treasury Department officials acknowledged Friday before a House subcommittee. But the hearing did not shed light on whether the arrangement violated federal law, something the Energy Department denies.
This short and somewhat innocent bit of reporting appeared on the third page of the NY Times on-line Times Digest. From the sound of it, there is a question about the legality of the subordination of the federal government’s loan repayment to private investors. The last sentence suggests ambiguity.
There is no ambiguity. It is illegal.
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