Saturday, September 17, 2011

The Solyndra Fiasco = Crony Capitalism

$535million of the people's money down the toilet. What lesson will Obama learn from this? Working as a VC is not his thing?

Background Via Wikipedia:
Solyndra was a manufacturer of cylindrical panels of CIGS thin-film solar cells based in Fremont, California. The company suspended all of its operations as of August 2011 leaving behind the United States government as its largest creditor.[1]

 
In May 2010, the company was personally promoted by President Obama in his visit as a model for government investment in green technology,[2] and was also visited by former California governor, Arnold Schwarzenegger.[3] A $535 million loan guarantee was applied for under the Bush administration but the loan was denied.[4] The $535 million loan guarantee was later granted by the Obama administration. Private investors also invested more than $1 billion into the company.[2]
Due to overseas price pressure coming from China in the period of constructing the new plant, the Fab 2, the company had shut-down its original plant, Fab 1, and simultaneously reduced its staff to approximately 1,100 employees.[5] In early September 2011, the company ceased all business activity, filed for Chapter 11 bankruptcy, and laid-off all employees.[3] The company is also being sued by employees who were abruptly laid-off.[2]
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