Second Energy Department-backed company goes bankrupt

By Ben Geman - 10/31/11 08:04 AM ET 

A Massachusetts company that received a $43 million Energy Department loan guarantee last year filed for bankruptcy Sunday, a step certain to fuel criticism of federal green energy financing in the wake of the solar company Solyndra’s collapse.

Beacon Power Corp., which develops energy storage systems, filed for bankruptcy protection in the U.S. Bankruptcy Court in Delaware.

Beacon Power had received federal loan guarantee to help build an energy storage plant in Stephentown, New York that began operating in January. The Treasury Department’s Federal Financing Bank provided the loan.

Beacon sought bankruptcy protection two days after the White House ordered an independent 60-day evaluation of the Energy Department's loan programs aimed at ensuring effective management and monitoring.

The review, conducted by a former Treasury Department official, will include examination of how Beacon’s project is performing going forward, and whether there are additional steps that can be taken to protect taxpayers, according to the Obama administration.

The Beacon bankruptcy comes roughly two months after the California solar panel maker Solyndra, which had received a $535 million Energy Department (DOE) loan guarantee in 2009, went belly up and laid off 1,100 workers.

Solyndra’s collapse unleashed a torrent of GOP-led attacks on the Energy Department’s loan guarantee program.

Solyndra and the broader loan guarantee program are under investigation in the House Energy and Commerce Committee and the House Oversight and Government Reform Committee.

“This latest failure is a sharp reminder that DOE has fallen well short of delivering the stimulus jobs that were promised, and now taxpayers find themselves millions of more dollars in the hole,” said Rep. Cliff Stearns (R-Fla.), the GOP’s point man on the Solyndra investigation and a senior member of the Energy and Commerce Committee, in a statement to The Hill and other outlets.

“Unfortunately for the American taxpayers, I am deeply concerned that other DOE programs could follow which goes to the heart of the President's flawed economic program,” he said.

Stearns is chairman of the energy panel’s Oversight and Investigations Subcommittee, which is expected to vote Thursday to subpoena internal White House communications about Solyndra.

Energy Department spokesman Damien LaVera said there are “many protections for the taxpayer” in the agreement with Beacon Power.

“The Department’s loan guarantee is for the project Stephentown Regulation Services, LLC, not the parent company, and the loan was set up in a way that ensures the Department is not directly exposed to the liabilities of the parent company,” he said in an email Monday.

The department also sought to contrast the Beacon Power project and Solyndra, noting that Solyndra stopped manufacturing operations when it went bankrupt, while Beacon Power intends to continue operating the New York energy storage plant.

“It is important to note that this plant itself, which is operational and generating revenue, is a valuable collateral asset. In addition, under the terms of our loan guarantee agreement, Stephentown Regulation Services, LLC currently has cash reserves and proceeds from the plant that it was required to hold as collateral on the loan,” LaVera said.

The Energy Department also noted that the federal government retains its “senior status” for repayment in the loan agreement with Beacon Power.

In contrast, the Solyndra loan guarantee was restructured in early 2011 to put private investors – who had agreed to provide another $75 million to the struggling company – first in line for repayment if the company liquidated.

Beacon drew $39 million of the guaranteed loan to help finance the plant.

Beacon’s bankruptcy filing lists assets of $72 million and debt of $47 million, according to Bloomberg.

“The current economic and political climate, the financing terms mandated by DOE, and Beacon’s recent delisting notice from Nasdaq have together severely restricted Beacon’s access to additional investments through the equity markets,” CEO F. William Capp said in the bankruptcy filing, according to the financial news service.

The Energy Department has lauded Beacon’s flywheel energy storage technology as a way to improve power grid stability and help bring renewable power sources into the system.

“We will continue to support the development and deployment of innovative energy systems like this energy storage project that support our goal of expanding renewable energy generation and reducing greenhouse gas emissions,” Energy Secretary Steven Chu said when announcing the finalization of the agreement in August of 2010.

The loan guarantee program was first authorized in a 2005 energy bill crafted under GOP control of Congress and signed into law by then-President Bush, and expanded under President Obama’s stimulus law.

The program was slow to get off the ground, and first loan guarantees were not issued until the Obama administration took power.

This story was updated at 8:36 a.m. and 9:48 a.m.

Source:
http://thehill.com/blogs/e2-wire/e2-wire/190641-second-energy-dept-backed-company-goes-bankrupt

" They are all small companies"...

Pelosi Defends Obamacare Waivers To 1,800 Firms: "They're Small Companies"

"They're small. I couldn't speak to all 1,800 of them, but some of the lists that I have seen have been very, very small companies. They will not have a big impact on the economy of our country," Nancy Pelosi said in an interview with CNBC.

McDonalds, one of the nation's largest employers in recent years, has received a waiver.

Click here for original article with video

Car Company Gets U.S. Loan, Builds Cars In Finland

You just can't make this stuff up....Your "green" tax dollars at work

Click on the link below for the entire original article:

Car Company Gets U.S. Loan, Builds Cars In Finland

"There was no contract manufacturer in the U.S. that could actually produce our vehicle," the car company's founder and namesake told ABC News. "They don't exist here."

We've made all the right choices

 

Transcript: ABC News' Jake Tapper's Exclusive Interview With President Obama

The man in his own words.....

"....I guarantee it's going to be a close election because the economy is not where it wants to be and even though I believe all the choices we've made have been the right ones, we're still going through difficult circumstances."

Click here for the entire article

How we succeed by failing

How we succeed by failing

By Kathleen Parker, Published: October 14

By the time Steve Jobs’s Wikipedia page had been adjusted to past tense, eulogists had added a footnote to his biography of success. Failure.

Jobs, though wildly successful, also failed often and badly. Therein, we note, lies perhaps the larger lesson of his life: Sometimes you have to fail to succeed.

The truth is, you usually have to fail to succeed. No one emerges at the top. Even those born lucky eventually get a turn on the wheel of misfortune. Anyone with a résumé of accomplishments also has a résumé of failures, humiliations and setbacks. Jobs was fired by the company he co-founded. Yet it was during this period of exile that he picked up a little computer graphics company later called Pixar Animation Studios, the sale of which made him a billionaire.

This is to say, to fail is human. To resurrect oneself is an act of courage.

Jobs himself recognized his failures in a now-famous 2005 commencement speech at Stanford. He recalled sleeping on the floors of friends’ dorm rooms and walking seven miles to a Hare Krishna temple for his one good meal of the week. One needn’t make an appointment with the Genius Bar to glean the moral of this story.

Fear of failure isn’t only an adult concern. From an early age, we are plagued with anxiety about performance. This seems a natural-enough evolutionary development. The strong and savvy survive (and get the girl). The less accomplished eat scraps and enjoy the company of human leftovers. “Losers,” we call them. So habitual is our attention to failure that we even have a word — or at least the Germans do — for enjoying others’: schadenfreude.

What possibly could make us take pleasure in another’s failure? Simple. We love the company.

A history of human failure would make for a long and interesting read, yet we prefer books about success. We thrill at the end-zone victory dance, applaud the extra point, admire the perfect 10. In literature, what is redemption but recovery from human failing? We love no one more than the man or woman who says I made a mistake, I’m sorry, please forgive me. Forgive? We want to hoist the penitent on our shoulders.

An entire lexicon of cliches has evolved around the idea of failure and recovery. It’s not the thing attained that matters; it’s the journey that gives us life. The act of creation — the struggle — far exceeds the pleasure of the thing created. Unless, of course, it’s an Apple iPhone 4S. BlackBerry? Not so much.

Recent acknowledgment of the power of failure, inspired by Jobs’s too-soon demise, provides a welcome spiritual uplift for stressed-out adults. But we’re missing an even more important morality tale that has profound consequences for our nation’s future. Our obsession with success and our fear of failure has trickled down to ever-younger humans, our children, at great cost not only to their psychological well-being but also, ultimately, to our ability to compete in the global marketplace.

We’re so afraid that our kids won’t measure up that we drive them crazy with overbooked schedules and expectations and then create a sense of entitlement by insisting on assigning blame elsewhere when their performance is lackluster. Sideline parents, first cousins to back-seat drivers, who challenge coaches, teachers and umpires on behalf of their children are a relatively new development that can’t be considered positive. When I wrote recently about the failure (there’s that word again) of colleges to teach core curricula that engender critical thinking skills, dozens of professors wrote to complain of students who aren’t willing to work hard (or show up) yet still expect good grades. Even in college, they said, parents pester professors for better marks for their little darlings.

In another famous commencement address, J.K. Rowling’s to Harvard in 2008, the “Harry Potter” author eulogized her own valuable failures. “Failure gave me an inner security that I had never attained by passing examinations,” she said. “Failure taught me things about myself that I could have learned no other way.”

If we agree that wisdom, confidence and a better Apple are gifts of failure, then why are we so afraid to allow our children to experience it? In a culture where failure is not well-enough understood as necessary to growth — and accomplishment is diminished by a code of equal outcomes that enshrines entitlement — then no one gets wiser or better. And a nation populated by such people may not survive.

See original article posted here

Solyndra CEO Resigns, Clip of Owner Bragging About Gov't Handouts Surfaces

It's been an interesting ride for bankrupt solar panel maker Solyndra at its stoic CEO Brian Harrison. Not long after receiving $535M USD in loan for a specialized solar technology (CIGS thin-film) one top green-tech editor billed "not worth commercializing" and "incapable of being competitive", the gig was up. Solyndra went bankrupt at the end of August.

Mr. Harrison who, much like the CEOs of other embattled firms like Enron, has become the target of much public vehemence. He refused to answer question from Congress, pleading the Fifth Amendment protection against self-incrimination. And this week he announced he was resigning from his leadership role as the company tries to restructure and emerge from bankruptcy.

R. Todd Neilson of Berkeley Research Group has been proposed as a candidate to be the firm's "chief restructuring officer". The company describes, "The CRO will assist the debtors in their ongoing efforts to sell estate assets, winding down the debtors' operations following such sale or sales, and otherwise managing the cases."

Mr. Harrison only recently came to Solyndra in 2010 [press release], taking over the top spot from Chris Gronet, Solyndra’s founder and current CEO. The chief had formerly served as CEO at since-acquired flash memory maker Numonyx and as an executive in the flash memory division at Intel Corp. (INTC).


Reports indicate Solyndra's base executive pay in 2010 was $400,000 USD [source], but another report indicates that the company's CFO received $831,000 USD [source] in total compensation that year. Thus it's likely that Mr. Harrison pocketed somewhere in the range of $500k to $1M USD before the company went under. He has refused to disclose his severance package, which may have boosted that total higher.

While Mr. Harrison might have left the situation a bit fatter financially, the firms 1,100 employees were left out to dry. The firm violated federal laws, terminating them without the 60 day notice that is required for plant closures. Solyndra has refused to pay these employees severance or benefits.

Solyndra is a hot topic politically as President Obama personally pushed the high risk loan. Some argue that the government acted as a "venture capitalist" due to the high risk of the solar industry. However, venture capitalists always charge very high interest rates on loans to safeguard themselves over financial losses from failed firms. By contrast the government loan was almost free money with almost no interest.

A campaign bundler for President Obama, billionaire George Kaiser effectively owned 36 percent of Solyndra through his family firm.

Mr. Kaiser remarked last year about government funding for his charitable projects, "There’s never been more money shoved out of the government's door in world history, and probably never will be again, than in the last few months and in the next 18 months. And our selfish parochial goal is to get as much as it for Tulsa and Oklahoma as we possibly can."

Click on link below for you tubevideo

http://www.youtube.com/watch?feature=player_embedded&v=19tD9xDoNmE

Given that Mr. Kaiser who describes himself as "a robber baron from Red State America" raised between $50K to $100K in President Obama's 2008 election bid, there's lots of questions being raised.

White House visitor logs show he made 16 visits to the White House since 2009, meaning that he likely made several trips in the months prior to the loan approval. Ken Levit, executive director of the family foundation, insists, "Kaiser’s meetings at the White House were about not-for- profit initiatives. George Kaiser is not an investor in Solyndra and did not participate in any discussions with the U.S. government regarding the loans."

Mr. Kaiser is a respected philanthropist, joining Bill Gates' pledge to give away half of his assets. His net worth includes a $1.9B USD bank stake. Ironically the bank he owns a controlling stake in -- the Bank of Oklahoma Corp. -- blasted the federal bank bailout program.

The government may yet recoup part of the lost loan by liquidating Solyndra's assets, which include a brand new 300,000 square-foot (28,000 square-meter) factory in California. Mr. Neilson, the proposed "bankruptcy CEO" played a similar role in the bankruptcy of boxer Mike Tyson and in other highly publicized bankruptcies. He began this unusually line of work after retiring from the U.S. Federal Bureau of Investigation.

President Obama recently said he has "no regrets" on the decision to support loaning taxpayer money to Solyndra.

Click here for original article

Sources: Bloomberg, CNN, YouTube

Does Obama's CNN Interview Prove Holder Lied to Congress on Fast and Furious???

Here's the video posted on You Tube >> Click HERE <<

YOU DECIDE

Transcript -- Obama interviewed by CNN en Espanol

Obama interviewed by CNN en Espanol

Click HERE for Original Article

Speech Transcript

LOPEZ: I want to ask you about Libya and the latest developments (inaudible). Question is, what happens now? U.N. mandate allows you, allows the coalition to protect the no-fly zone, to protect civilians, but it doesn't give any leeway to go after Gadhafi.

OBAMA: Right.

LOPEZ: So where does the mission stand now? What happens now? Will you stay (ph) in Tripoli (inaudible)?

OBAMA: Well, look, first of all, we have been successful so far in accomplishing the very specific objectives of the mission under the U.N. Charter, which was to establish a no-fly zone, to make sure that we provided humanitarian protection at a time when that was urgently needed. Gadhafi had turned his troops on his people and said that they should go into Benghazi, a city of 700,000 people, and show no mercy. And because the international community rallied, his troops have now pulled back from Benghazi. We are now seeing a no-fly zone being established. The United States came in early to shape the environment so that a no-fly zone could operate safely, taking out, for example, Gadhafi's air defense systems. And so U.S. planes have already been significantly reduced in the area, because what's now happening is that all the other members of the coalition are maintaining that no-fly zone.

You are absolutely right that Gadhafi may try to hunker down and wait it out even in the face of a no-fly zone, even though his forces have been degraded. But keep in mind that we don't just have military tools at our disposal in terms of accomplishing Gadhafi's leaving. We put in place strong international sanctions. We've frozen his assets. We will continue to apply a whole range of pressure on him.

But with respect to the military action, that specifically is done under the U.N. Security Council resolution, and calls for maintaining the no-fly zone and ensuring that the people of Libya aren't assaulted by their own military.

LOPEZ: Can you and will you give military support to the rebels?

OBAMA: Well, you know, obviously we're discussing with the coalition what steps can be taken. I think that our hope is that the first thing that happens once we've cleared the space is that the rebels are able to start discussing how they organize themselves, how they articulate their aspirations for the Libyan people and create a legitimate government. And you know, potentially what we may see is that all the enthusiasm the Libyan people had for a change in government that was occurring a few weeks ago but that Gadhafi, through just brutal application of force, made people fearful, that that can resurface. And it may be that it's not a matter of military might, but instead an idea that's come to the Libyan people that it's time for a change that ends up ultimately sweeping Gadhafi out of power.

But we are going to be examining all our options, but our first task right now is to shape the environment so that, you know, Gadhafi's forces can't attack his own people; maintain the no-fly zone. And the United States' role, once that environment is shaped, is actually significantly reduced because we've got a broad-based international coalition, including Arab states, that believe in the same thing that we do.

LOPEZ: Is it a contradiction when a Nobel Peace Prize winner authorizes the use of force on the eighth anniversary of the (inaudible)?

OBAMA: Well, listen, the -- when I received that award, I specifically said there was an irony, because I was already dealing with two wars. We were in the process of pulling our troops out of Iraq, and I was still dealing with an Afghanistan war that had dragged on for many years but had not been sufficiently focused in terms of accomplishing a clear goal of protecting the American people. And so I'm accustomed to this contradiction, of being both a commander in chief but also somebody who aspires to peace.

The situation here is entirely focused on making sure that the Libyan people can live out their own aspirations. You know, we're not invading a country. We're not acting alone. We are acting under a mandate issued by the United Nations Security Council, in an unprecedented fashion and with unprecedented speed. We had a limited task, a focused task, and we've saved lives as a consequence. And I think the American people don't see any contradiction in somebody who cares about peace also wanting to make sure that people aren't butchered because of a dictator who wants to cling to power.

LOPEZ: We want to talk about your trip and your message to Latin America. Many said that you said things that people expected, but there weren't details. That's (inaudible) and is part of a more (inaudible).

OBAMA: Certainly what's true is that the relationship between the United States and Latin America has evolved I think in a very positive way over the last several years. I mean, if you think about the countries that we're visiting, Brazil, a country that used to be under a dictatorship, transformed itself into a democracy, is now a growing economic giant not just in the region, but around the world. A center-left government, but one that embraces free enterprise and open markets and trade.

Then I went to Chile, also once was under a dictatorship, has now transitioned to a full-fledged democracy. President Pinera perceived to be a center-right president, but he's also somebody who cares deeply about social inclusion and alleviating poverty inside his country.

You come here to El Salvador, you've got President Funes, who was elected under the banner of the FMLN, a left-wing party, but is now operating in a very practical way. In some cases, it's causing him problems, both on the left and the right.

And what I think that shows is that the entire region is much less interested in ideology, much less interested in left or right. It's interested in practical results. How can we solve problems to help kids get an education, help people support themselves and find a job, help businesses develop, help the entire region grow. And that's the kind of partnership that we want. You know, we still have specific programs that we're involved with here in El Salvador. You know, they received a millennium challenge grant that provides over $400 million to help this country develop. They are one of four countries that we've selected for a partnership for growth that will involve us working very closely with their economic team to find out what are the barriers to economic development in this country.

So we still have, yes, very specific programs, but the overall context has changed, because we want to be seen as a partner to a region that is already growing, already vibrant, and that recognizes it's not coming hat in hand to the United States to solve problems. You know, Brazil, Chile, they're solving their own problems. In some ways, you know, they're doing some things that we should envy. I mean, Brazil's energy agenda right now is very robust. And they are a leader in biofuels. You look at Chile, how they've managed fiscally. They've done a good job managing their budget, even through a recession. And so this is a two-way street instead of a one-way street, and that basis of mutual respect, mutual interest, mutual trust, you know, that's what I think will forge a very strong relationship in the Americas, throughout the Americas, into the future.

LOPEZ: I want to ask you about immigration (inaudible), immigration problems, and they're asking, when will it be enough, when will these types of attacks (inaudible)? (inaudible) temporary protective status like Salvadorans have and legalize people (inaudible)?

OBAMA: Well, keep in mind that temporary protective status was targeted very specifically at people who were not just escaping economic challenges, but very real political challenges. And so that's not going to be the solution to the overall immigration problem.

I continue to believe we can get comprehensive immigration reform done. I'm going to need some help. I can get the majority of Democrats to support it. I need some help from Republicans. But we're going to put forward, as I said in the State of the Union, our proposals, our plans for comprehensive immigration reform. I will make the argument to the American people once again as to why this is necessary. And in the meantime, I think one of the interesting things that we're seeing, despite some of this crazy legislation that has been introduced by people who I think are just trying to get attention, and is offensive, on the other hand you've seen some legislation, for example in Arizona, that was proposed and now is being pulled back because businesses are starting to recognize this is not good for business. And perhaps some of my Republican friends are going to start recognizing if they looked at the last census, that they're going to have a very hard time winning any elections if they continue to deliberately target anti-immigration sentiment.

And so, using the bully pulpit, I want to be absolutely clear to the American people, we are a nation of immigrants. Most of us came from someplace else. And you know, there is a legitimate role to make sure that we have secure borders, that we have a strong process of legal immigration, that we're making sure that businesses aren't exploiting undocumented workers. But ultimately, we're going to have to have a comprehensive approach that also includes taking those who are already in the United States, living in the shadows, and giving them a pathway towards a legal status. And we're going to -- we're going to continue to fight for that.

LOPEZ: (inaudible). He then met with you and now the ambassador, the U.S. ambassador has (inaudible) to Mexico. Is it a recognition that the assistance isn't going the way it's supposed to be? There was an agent who was murdered in Mexico. Some of the weapons came through the (inaudible) programs. So where is that aid and what is the decision?

OBAMA: Actually, the coordination -- and I think President Calderon acknowledged this when he was in Washington -- the coordination that my administration has committed to on dealing with transnational drug cartels is unprecedented. And overall, has been very robust and very effective.

There have been problems, you know. I heard on the news about this story that fast and furious, where allegedly guns were being run into Mexico and ATF knew about it but didn't apprehend those who had sent it. Eric Holder has -- the attorney general has been very clear that he knew nothing about this. We had assigned an IG, inspector general, to investigate it.

But the overall relationship with Mexico is actually very strong. The challenge is that drug cartels have gotten stronger. And President Calderon, rightly, is frustrated. So what I've said to him is, we have to share these burdens. We've got to make sure that we're investing in reducing demand in the United States, and I've budgeted $10 billion even in these hard fiscal times for drug education and prevention programs. We have to make sure that we are interdicting the flow of guns and cash to the south. It's not enough just to interdict drugs flowing north. And so, we've actually initiated a whole range of measures to make sure that we're reducing that southbound flow.

But this is a hard problem. It's a challenging problem, and it's one that the two countries are going to have to work on together for a significant period of time.

LOPEZ: Muchas gracias, Mr. President.

OBAMA: Muchas gracias.

WH Clarifies: Obama Told CNN Espanol in March He Heard About 'Fast and Furious' 'On the News'

Click here for original article: White House Clarification

(CNSNews.com) – When asked at the White House press briefing today when President Barack Obama first learned about Operation Fast and Furious, White House Press Secretary Jay Carney said that the president had indicated at a press conference in El Salvador earlier this year that he had first learned about the operation when he "read about it" somewhere. Later, however, Carney clarified to CNSNews.com that the president had explained how he learned about Fast and Furious not at the press conference in El Salvador but in an interview with CNN Espanol that had aired that same day, March 22.

In the March 22 interview, Obama said: “There have been problems, you know. I heard on the news about this story that fast and furious, where allegedly guns were being run into Mexico and ATF knew about it but didn't apprehend those who had sent it. Eric Holder has -- the attorney general has been very clear that he knew nothing about this. We had assigned an IG, inspector general, to investigate it.”
At today’s White House briefing, Fox News’ Ed Henry asked about the topic.

Carney replied, “As he [Obama] said in public at a press conference, he heard when he read about it sometime earlier this year. The press conference was in El Salvador when he was on that trip. I don’t have a specific day.”

Carney told CNSNews.com after the briefing that Obama did not speak about it at the press conference, which was held on March 22 in El Salvador. The White House press office clarified that Obama spoke about the matter on CNN Espanol. Carney said he did not have an exact date or month when the president first read about it in the news.

On March 22, Obama also gave an interview to the Spanish-language Univision and was asked about Operation Fast and Furious. The president did not specify when he found out about the botched gun-running operation, only that he was not informed.

“Well, first of all, I did not authorize it,” Obama said on Univision. “Eric Holder, the attorney general, did not authorize it. He’s been very clear that our policy is to catch gun-runners and put them in jail. So, what he’s done is, he’s assigned an IG, an inspector general to investigate what exactly happened here.

The reporter then asked, “So who authorized it?”

Obama said, “Well, we don’t have all the facts. That’s why the IG is in business.”

“And you were not even informed about it?” said the reporter. Obama said, “Absolutely not. This is a pretty big government, the United States government. I’ve got a lot of moving parts.”

“There may be a situation here in which a serious mistake was made,” said Obama. “If that’s the case, then we’ll find -- find out and we’ll hold somebody accountable.”

The Univision reporter then asked, “Mexico was not informed then?” Obama answered, “Well, if I wasn’t informed, I assure you Mexico wasn’t.”

Operation Fast and Furious was a botched gun-sting operation in which the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) knowingly allowed guns to flow to Mexican drug cartels. The ATF lost track of most of the near 2,000 guns that it intended to track.

The program that began in September 2009 was halted in December 2010 when two guns from the operation were found at the murder scene of Border Patrol agent Brian Terry. The matter is under investigation by Congress and the Justice Department’s Office of Inspector General.

On June 27, CNSNews.com asked Carney, “Could you tell me what is the exact date that the president learned about the Justice Department ATF operation to allow guns to flow into Mexico?”
Carney eventually answered, “I’ll have to get back to you. I don’t have an exact date for you.”
Carney did not respond June 28 and July 6 follow-up inquiries. CNSNews.com asked again on Wednesday morning, Oct. 5, and received no response.

During a June 29 press conference, a reporter asked Obama, “Fast and Furious, members of Congress and the government of Mexico are still waiting for answers. Are you planning to replace ATF leadership? And when can we expect the results of the current investigation?”

Obama answered, “On the second question, as you know, my attorney general has made clear that he certainly would not have ordered gun-running to be able to pass through into Mexico. The investigation is still pending. I’m not going to comment on a current investigation. I’ve made very clear my views that that would not be an appropriate step by the ATF, and we’ve got to find out how that happened. As soon as the investigation is completed, I think appropriate actions will be taken.”

Newly released documents show Attorney General Eric Holder was informed about the operation in memos from July 2010, which apparently contradicts his May 3 testimony to the House Judiciary Committee, when he said: “I’m not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks.”

House Judiciary Committee Chairman Lamar Smith (R-Texas) has called for a special counsel to probe whether Holder told Congress the truth when he was under oath.
Carney dismissed the demand and defended Holder.

“The president believes he’s an excellent attorney general and has great confidence in him and we absolutely know that the testimony he gave was consistent and truthful,” Carney said. “A piece of paper in a document that is many, many pages long contained a phrase that discussed nothing about the tactics that are at issue here.”

Obama Spoke About "Fast & Furious" Before Holder Claimed He Knew

CNN's John King plays Holder's testimony to Congress on MAY 3, 2011, where he said he had only just recently heard about the Fast & Furious gunrunning program. "I'm not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks," Attorney General Eric Holder said.

Then CNN compares Holder's testimony to what President Obama said in MARCH to CNN Espanol about the operation. "I heard on the news about this story that -- Fast and Furious, where allegedly guns were being run into Mexico, and ATF knew about it, but didn't apprehend those who had sent it." Transcript of the segment that aired on "John King USA" below:

KING: Well, Congressman Cummings, let's get to one of the questions here. Let's first listen to the attorney general. He came before this committee back in May. Here's what he said.

(BEGIN VIDEO CLIP)

ISSA: When did you first know about the program officially I believe called Fast and Furious? To the best of your knowledge, what date?

ERIC HOLDER, U.S. ATTORNEY GENERAL: I'm not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks.

(END VIDEO CLIP)

KING: He says over the last few weeks.

That is on May 3, 2011. Listen to this interview the president of the United States, not the attorney general, the president of the United States, had with CNN Espanol back in March.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: There have been problems, you know. I heard on the news about this story that -- Fast and Furious, where allegedly guns were being run into Mexico, and ATF knew about it, but didn't apprehend those who had sent it.

Eric Holder has -- the attorney general has been very clear that he knew nothing about this. We had assigned an I.G., inspector general, to investigate it. (END VIDEO CLIP)

KING: It begs the question, how did the president know about this in March, and how did the president know the attorney general knew nothing about this in march, when the attorney general says in May he just learned about it a couple weeks ago?

Click here for original article

'Insane' even by Illinois standards? Union official to get $500,000 in pensions

 Click Here -- The Headline says it all

'Insane' even by Illinois standards? Union official to get $500,000 in pensions. Yup Illinois residents, your union dues contribute to that...Clearly their greatest concern is the plight of the common working man.....

SunPower: Twice As Bad As Solyndra, Twice As Bad For Obama

Congressman's son lobbied for failing solar panel company

Capitol Hill​ powerbroker Rep. George Miller (D.-Calif.), center, hosted Interior Sec. Kenneth L. Salazar, left, on an Oct. 14, 2010 tour of SunPower's Richmond, Calif., plant. During the tour, Salazar said plants like SunPower's transform renewable energy ideas into reality. One month later, the company announced it had restated its 2008 and 2009 financial filings to correct for unsubstantiated accounting entries.

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How did a failing California solar company, buffeted by short sellers and shareholder lawsuits, receive a $1.2 billion federal loan guarantee for a photovoltaic electricity ranch project—three weeks after it announced it was building new manufacturing plant in Mexicali, Mexico, to build the panels for the project.

The company, SunPower (SPWR-NASDAQ), now carries $820 million in debt, an amount $20 million greater than its market capitalization. If SunPower was a bank, the feds would shut it down. Instead, it received a lifeline twice the size of the money sent down the Solyndra drain.

Two men with insight into the process are SunPower rooter Rep. George R. Miller III, (D.-Calif.), the senior Democrat on the House Education and Workforce Committee and the co-chairman of the Democratic Steering and Policy Committee, and his SunPower lobbyist son, George Miller IV.

Miller the Elder is a strong advocate for SunPower, which converted an old Richmond, Calif., Ford plant in his district to a panel-manufacturing facility.

The congressman hosted an Oct. 14, 2010, tour of the plant with company CEO Thomas H. Werner and Interior Secretary Kenneth L. Salazar to promote the company’s fortunes.

“The path to a clean energy economy starts here, in places like SunPower’s research and development facility,” said Salazar during the tour.

“The work that comes from these facilities transforms renewable energy ideas into a reality. When renewable energy companies continue to invest in places like California, the realization of a new energy future is within our reach,” he said.

Miller the Elder said he was grateful for Salazar's interest.

“We’ve worked hard to make renewable energy a priority because it represents America’s future economic growth. Today, businesses like SunPower are moving forward, hiring 200 people for good clean energy jobs in the East Bay,” he said.

“By fostering a business climate that encourages companies like SunPower, even more good jobs will be created locally, we’ll reduce demand for dirty energy sources, and we’ll cut customers’ utility bills. That’s the right direction,” he said.

SunPower’s political action committee (PAC) was not shy about participating in the political process either.

According to the SunPower PAC filings for its activities in the 2010 midterm election campaign cycle, it donated more than $36,000. Of the $15,650 donated to House and Senate candidates, $14,650 went to Democrats, with these top recipients: $4,000 to Sen. Harry Reid (D.-Nev.), $3,000 to Rep. Gabrielle Gifford (D.-Ariz.) and $2,900 Sen. Barbara Boxer (D.-Calif.).

The congressman was not forgotten either. The SunPower PAC remembered him with $500 for his 2010 campaign. While SunPower was a financial partner in the congressman’s reelection campaign, it straight-out hired his son.

Miller the Younger is not registered to lobby in Washington, but he is a member of its bar. He is not a member of the California bar, home of his lobbying firm, Lang, Hansen, O'Malley and Miller (LHOM), of which he is a founding partner.

According the firm's website LHOM specializes in providing advice to clients on larger macro political issues trends. “Utilizing our broad experience in California and Washington, D.C., we can furnish 'big picture' analysis of developing political and policy trends which may affect client interests and goals.”

What does Miller the Younger bring? Read here: “George Miller brings a lifetime of friendships, relationships, and contacts together with over 15 years of front-line advocacy experience. He’s an attorney with expertise that ranges from insurance and banking to transportation, taxation and gaming law,” according to the website. “Unlike most advocates, George is at ease working both the corridors of Sacramento power or the halls of Congress.”

What is the stated purpose of the SunPower’s DOE 1705 program loan guarantee?

SunPower has different lines of business. In addition to manufacturing solar panel and roof tiles, it builds solar panel ranches, which it then sells off, but retains the services contract.

The loan guarantee is earmarked for the job numbers for the California Valley Solar Ranch (CVSR) in San Luis Obispo County, which it has already sold to NRG Solar, but will continue to maintain.

According to the Department of Energy (DOE) website, the CVSR project will create 350 construction jobs during the two-year build and 15 permanent jobs—presumably those are the squeegee men for keeping the panels clean.

If $80 million per permanent job seems a little high, even for the current Obama administration, you are correct. In addition to the 350 construction jobs and the 15 squeegee men, there will an as-yet-undetermined number of jobs created building the panels for the CVSR—in Mexicali, Mexico.

The company is looking for a facility of up to 320,000 square feet, where it will build three different solar panel models and its solar roof tiles, according the company’s Aug. 5 statement.

Marty T. Reese, the company's chief operating officer, said, “Establishing our own manufacturing facility in Mexicali means we will be positioned to quickly deliver our high-efficiency, high-reliability solar products to a growing North American solar market.”

Mexicali Mayor Francisco Perez Tejada Padilla said he was thrilled. “Mexicali is rapidly becoming an industrial hub for high-tech companies, offering an educated workforce and a growing manufacturing area,” he said. “We welcome SunPower to our city and are pleased that they have chosen Mexicali to establish its solar panel manufacturing facility.”

The good news for Mexican jobs seekers did not affect the DOE's loan guarantee to SunPower. Hours before the DOE 1705 loan program expired at the end of Fiscal Year 2011 on Sept. 30, the $1.2 billion in loan guarantees was approved for the company.

Insiders get liquid through for $1.4 billion friendly buyout from France.

If that timing seems odd to you, consider the time line of company events around when the loan was announced April 12: just two weeks before France's Total Oil​ (TOT-NYSE) launched its friendly takeover.

The deal, made public April 28, was in effect a 60% buyout at $23.25, then a 60% premium over the stock's current trading price, which allowed insiders to get liquid.

SunPower CEO Werner is typical of the insiders. On May 24 he exercised his right to purchase 428,343 shares at $3.30 per share, a $18 discount from the day’s trading range. He sold 478,084 shares June 15, the day the Total Oil takeover closed, at $23.25 for proceeds of $11,115,453.

Remember, Total Oil was offering at $23.25 per share in what was in effect a private sale. The SPWR, Class A or B, shares have not traded above $23 since June 10, 2010.

SunPower is a company in trouble.

In his Sept. 26 column for SeekingAlpha.com, Stoyan Elitzen lists SunPower as the ninth-most-shorted solar stock in either the New York Stock Exchange or NASDAQ markets. Short sellers are betting that a stock price will go down, as opposed to those who buy long, who expect a stock price to up.

According the Elitzen, the size of SunPower's short position is equal to 15 days of its average daily volume of 725,000 shares per day. By any measure, such pessimism is a banshee screaming in the night for a company's stock price that has already lost 94% of value from its 2007 apex.

Although its stock has recovered from its all-time low Oct. 4 of $6.60 per share to trade between $8 and $9 per share, it has been a steep slide from its all-time high Dec. 3, 2007 of $133. Then, the company was worth $13 billion.

Today, its market capitalization is $800 million, just short of its debt of $820 billion, according to the company's July filings for the second quarter.

The Oct. 4 sell-off, which gave shareholders a 12% haircut, was triggered by the company's Oct. 3 aftermarket statement announcing the company was paying down its $50 million credit line with a consortium of European banks and opening a new $200 million credit line with Deutsche Bank​.

According to the statement, Dennis V. Arriola, the company's chief financial officer said the new credit line will improve the company's ability to operate.

“However, the challenging market conditions continue to impact our global residential and commercial business. As a result, we will revise our 2011 revenue and earnings outlook on our third-quarter earnings conference call to be held on Nov. 3,” he said.

As much as Arriola's negative guidance shook up the markets, it also reflects a lesson learned.

In addition to all its other challenges, the company and its officers are defendants in a federal shareholder lawsuit, whose plaintiffs include, the Austin (Texas) Police Retirement System, the Arkansas Teachers Retirement System and a number of institutional investors for an alleged scheme to deceive the investing public by making false statements contrary to nonpublic information known to the insiders.

The allegations cover the period between April 17, 2008, to Nov. 16, 2009, the day the company announced that it had discovered unsubstantiated accounting entries to its operations in the Philippines, which led to the significant restating of the company's financials.

There are a number of lawsuits filed in California courts relating to the same period alleging gross mismanagement, breach of fiduciary responsibility, unjust enrichment and abuse of control.

The first of the lawsuits was filed Nov. 18, 2009, and they have yet to be resolved.

It is a fair question to ask how a company with such serious charges lodged against its management team could receive a $1.2 billion loan guarantee from the taxpayers, so it could built a new manufacturing plant in Mexico to build the solar panels it will install at a photovoltaic ranch that will create a total of 15 permanent jobs.

Certainly, the time is right for Miller and Miller to clarify their roles in this mess.

Issa letter questions Holder’s ‘credibility’ to serve

Attorney General Eric H. Holder Jr.'s "lack of trustworthiness" in explaining what he knew about the failed "Fast and Furious" weapons investigation has "called into question his overall credibility" to serve as the nation's top prosecutor, the chairman of a House committee investigating the operation said Monday.

In a blistering letter, Rep. Darrell E. Issa, California Republican, who heads the House Oversight and Government Reform Committee, told Mr. Holder that it was time for him "to come clean to the American public" on what he knew and when about the weapons investigation, saying Mr. Holder has made numerous statements about the operation that have "proven to be untrue."

"The time for deflecting blame and obstructing our investigation is over," Mr. Issa wrote. "Operation Fast and Furious was the department’s most significant gun-trafficking case. It related to two of your major initiatives — destroying the Mexican [drug] cartels and reducing gun violence on both sides of the border.

"On your watch, it went spectacularly wrong. Whether you realize yet or not, you own Fast and Furious. It is your responsibility," he wrote, adding that Mr. Holder had an obligation to say who is going to be held accountable "for failing to shut down a program that has already had deadly consequences, and will likely cause more casualties for years to come."

Mr. Issa has been investigating Fast and Furious for several months with Sen. Chuck Grassley of Iowa, ranking Republican on the Senate Judiciary Committee. The operation involved the purchase of weapons at Phoenix-area gun shops that eventually were "walked," or taken, into Mexico, where they were delivered to Mexican dug bosses.

Two of the weapons, both AK-47 assault rifles, were found at the scene of the killing of U.S. Border Patrol Agent Brian A. Terry in December.

Mr. Issa said the Justice Department from the beginning of the probe has offered "a roving set of ever-changing explanations to justify its involvement in this reckless and deadly program."

A Justice Department spokeswoman dismissed Mr. Issa's letter Monday as "recycled" partisanship.

But Mr. Issa said Justice's defenses were aimed at undermining the congressional investigation.

The Justice Department insisted from the start that no wrongdoing had occurred and asked that he and Mr. Grassley defer their oversight responsibilities because of concerns they would interfere with an ongoing investigation by the department's Office of Inspector General, Mr. Issa said.

Additionally, he said, the department steadfastly insisted that none of the Fast and Furious guns had been "walked" into Mexico.

"Once documentary and testimonial evidence strongly contradicted these claims, the department attempted to limit the fallout from Fast and Furious to the Phoenix field division of the Bureau of Alcohol, Tobacco, Firearms and Explosives," he said. "When that effort also proved unsuccessful, the department next argued that Fast and Furious resided only within ATF itself, before eventually also assigning blame to the U.S. attorney’s office in Arizona.

"All of these efforts were designed to circle the wagons around [Justice] and its political appointees," he said.

Last month, Mr. Holder claimed Fast and Furious did not reach the upper levels of the Justice Department, Mr. Issa said, although documents discovered through the course of the investigation proved that "each and every one of these claims advanced by the department to be untrue."

"It appears your latest defense has reached a new low," he said, adding that Mr. Holder in a letter Friday said he was unaware of the Fast and Furious operation because his staff failed to inform him of information contained in memos that were specifically addressed to the attorney general.

"At best, this indicates negligence and incompetence in your duties as attorney general," Mr. Issa said. "At worst, it places your credibility into serious doubt.

"Instead of pledging all necessary resources to assist the congressional investigation in discovering the truth behind the fundamentally flawed Operation Fast and Furious, your letter instead did little but obfuscate, shift blame, berate and attempt to change the topic away from the department’s responsibility in the creation, implementation and authorization of this reckless program."

On Friday, Mr. Holder denied that emails sent to his office showed that he knew of the Fast and Furious operation and did nothing about it. He said public comments about the inquiry and his involvement with it had become "so base and so harmful to interests that I hope we all share" that he had to publicly address the matter.

Mr. Holder said he took "decisive action" when he learned earlier this year about Fast and Furious in ordering the Office of Inspector General to investigate the matter. He said he also overhauled the leadership at ATF and the U.S. attorney's office in Phoenix, which oversaw the investigation.

"It has become clear that the flawed tactics employed in Fast and Furious were not limited to that operation and were actually employed in an investigation conducted during the prior administration," Mr. Holder said, referring to a separate initiative known as "Operation Wide Receiver" managed by federal authorities during the George W. Bush administration.

"Regardless, those tactics should never again be adopted in any investigation," he said.

Justice Department spokeswoman Tracy Schmaler said the Issa allegations, no matter how many times they are repeated, continue to be "baseless." She said Mr. Holder took concerns about tactics used in Fast and Furious to the Office of Inspector General, where the operation is now under investigation.

"The department will continue to cooperate with both the inspector general and congressional investigations," she said. "In the meantime, what the American people deserve is less partisan showboating and more responsible solutions to stopping gun violence on the Southwest Border."

In the letter, Mr. Issa said documents obtained by congressional investigators show Mr. Holder was aware of Fast and Furious in the summer of 2010 at the latest, not April or May of this year as he testified. Mr. Issa said Mr. Holder was informed about the ATF investigation on at least five occasions and was told that straw buyers were responsible for the purchase of 1,500 firearms that were then supplied to Mexican drug-trafficking cartels.

"Yet, you did nothing to stop this program," Mr. Issa said. "You failed to own up to your responsibility to safeguard the American public by hiding behind" attorneys in your office, "who you now claim did not bring this information to your attention."

Mr. Issa said the "most disturbing aspect of this intransigence" is that the Justice Department "has been lying to Congress ever since the inquiry into Fast and Furious began."

"These firearms were not interdicted. They were not stopped. Your agents allowed these firearms purchases to continue, sometimes even monitoring them in person, and within days some of these weapons were being recovered in Mexico," he said.

© Copyright 2011 The Washington Times, LLC

House Committee to Subpoena Holder in 'Fast and Furious' Probe

The wheels of justice grind slowly

Lest we forget Border Patrol agent Brian Terry lost his life to a criminal who shot him to death using one of these weapons.

We need continued investigations, to get to the bottom of this one...

House Committee to Subpoena Holder in 'Fast and Furious' Probe

See Second Article regarding the topic here

Attorney General Eric Holder fired off a 5-page letter to congressional leaders.

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