WILL FOCUS ON HOW SEVERAL RED FLAGS WERE IGNORED AND WHY TAXPAYERS WERE PUT BEHIND PRIVATE FIRMS IN LOAN RESTRUCTURING

WASHINGTON, NOV. 16, 2011 – “The failure of Solyndra underscores a significant weakness in the Administration’s effort to promote job creation, which in this case resulted in the loss of  $535 million in taxpayer funds,” said Rep. Cliff Stearns (R-FL), Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.    “Although several red flags were raised over Solyndra’s financial stability, the Department of Energy and the White House decided to put taxpayer funds at risk.  In addition, during the restructuring of the Solyndra loan the Department of Energy allowed the subordination of taxpayers to two commercial firms, in violation of the Energy Policy Act of 2005.  I look forward to asking Secretary Chu why these warnings were ignored and why taxpayers were put behind two hedge firms.”

The Oversight and Investigations Subcommittee is holding a hearing on Thursday, November 17, 2011 with Secretary of Energy Steven Chu.  The haring entitled “The Solyndra Failure: Views from DOE Secretary Chu” will be held at 10:00AM in Room 2123 RHOB.