TREASURY STAFF INDICATED IN EMAILS SUBORDINATION OF TAXPAYERS WAS ILLEGAL

WASHINGTON, OCT. 13, 2011 – “This investigation has learned that the Treasury Department was concerned that the Department of Energy’s (DOE’s) restructuring of the Solyndra Loan in early 2011 was in violation of the Energy Policy Act of 2005,” stated Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.  “Ignoring this law, DOE allowed the $75 million from two hedge fund investors to be put ahead of taxpayers in the event of Solyndra’s bankruptcy.  We need insight into Treasury’s role in reviewing this loan guarantee.”

The Subcommittee is holding a hearing entitled “Continuing Developments Regarding the Solyndra Loan Guarantee” on Friday, October 14^th at 9:30 AM in Room 2123 RHOB.  The two witnesses are Gary Grippo, Deputy Assistant Secretary for Fiscal Operations and Policy, U.S. Department of the Treasury; and Gary H. Burner, Chief Financial Officer, U.S. Department of the Treasury Federal Financing Bank.