A Solyndra Insider's Words

Bruce Krasting's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
dida's picture

I think you did a good work there adnd you shouldn't be afraid about the consequences, becasue in the end everything will be alright. Cazare Lepsa

dis-stressed's picture

Great reporting Bruce...much appreciated

Captain Nukem's picture

Gov spent $535M to create about 1000 jobs for 2.5 years? That would be $214,000/year per job.

Could be that the Kaiser non-profit money was intended as "seed money" to attract a much bigger investment from the gov. It would also buy Kaiser some control so that he could personally make a killing on the IPO if the idea proved successful. It is possible to double your money in a single day if you are able to get in on a hot IPO. But we haven't seen many of those lately...

lunaticfringe's picture

Thanks for posting this. I have been a huge critic of SOL and still am...at least this piece offers an explanation for all of the sinister shit we have seen and of course MIA- is George Kaiser. Calling George. What sayeth ye George?

ex VRWC's picture

It doesn't matter, the political damage that this has inflicted and will continue to inflict is the real point.  Not just on Obama but also on the whole idea of the government picking winners and backing technology for 'the common good'. Which is in some ways a shame because there are times where the technology would not get made otherwise.  Whether 'green energy' is one of those times is debatable.

The other problem is you basically have the government playing cozy with a bunch of people who exist to make huge profits out of the deal, such as I-Bankers.  This is where this is so wrong on so many levels - the government just becomes just another gambler in a corrupt system designed to reap huge profits for the participants - except the government will not reap huge profits even if they are made, and, in the worst case, the government loses everything,

malek's picture

So that baby was circling the drain for the last 18 months already?

What happened to Fab 2, did it ever commence production.
The whole story sounds a bit like "We're losing money on every sale? Well, let's try to make it up on volume."

Atlantis Consigliore's picture

YA YA YA.....IT IS ALL VERY INTERESTING, BUT VE ARE WITH MERKLE NOW MIT DE FRENCH FRAULINES UND THE UBERZZZEEEC

MOVIES UND DE BANG A BAMA BOOM...

WITH KFS UND DE VUNDERBAR.  

WE KNOW NOTHING ABOUT SOLYNDRA.....NOTHING,  AND DONT CALL

ME RAHM, MY NAME IS  SARGEANT SCHULTZ,  VE KNOW NOTHING.......DONT YOU DARE PLAY THAT TAPE...!!!!

 

http://www.youtube.com/watch?v=QlVWArmysic

 

VERRRRRRY INTERESTING. ANOTHER $ 5 b LENT

Careless Whisper's picture

Why the obsession with Soly? We know what went down. This isn't rocket science.

 

Atlantis Consigliore's picture

Rahm:  WLS Radio interview when asked as Chief of Staff

his involvment with Solyndra.

 

I Dont Remember Solyndra, ask me something else.

and dont call me RAHM;

 

Its Herr Sargeant Schultz...I know nothing...NOTHING

 

http://www.politico.com/news/stories/0911/63810.html

 

DONT YOU DARE PLAY THAT TAPE!!!  ACHTUNG

 

http://www.youtube.com/watch?v=QlVWArmysic

Ergo's picture

In the words of Hamlet, "The lady doth protest too much, methinks." 

(exaple:  Surely, the non-profit can make money, or else they wouldn't have invested.  There's lots of ways to channel money.)

Miss Expectations's picture

3 Minutes of All the President's Men:

"Get some harder information next time."

http://www.youtube.com/watch?v=fCckvZ59FQA&NR=1

vast-dom's picture

Like I said earlier today: this is NOT an investmenet proper - this is a QE-like $kaM that never honored the concept of ECONOMIES OF SCALE nor MC=MR nor any other basic econ funduhmentals. No RD no innovation just pure hopium.

 

e.g. "legit injection operation" is akin to raising capital for what was explicitly an unsustainability project with overt mishandling at every stage of operations; and yet we asked Teh Gov (i.e. taxpayer/QE/etc.) to invest in essentially disclosed failure = fraud. 

 

Please uncle sam give me billions today for my time-machine factory i have possibly maybe lots of orders and things can one day retroactively/furistically be manipulated and covered up if you inject right now for tomorrow.

 

Amazing. 

TheArmageddonTrader's picture

Good of you to give a pro-Solyndra guy the chance to tell the pro-Solyndra story. But I wonder what his real reason is for not wanting to go on the record. I don't think it's FBI. In any case, he doesn't stand 100% behind what he's saying, you have to take it that way.

So if I understand him right, he's saying Solyndra transferred its assets to a wholly owned subsidiary - can anybody confirm that? And why? So that new investors could then buy into that subsidiary thus diluting the original investors' (and public's) claim on the assets? If so, did that happen, or was it aborted?

His statement that the asset transfer couldn't have been a give-away because that would involve a "massive conspiracy" is pure BS. It would entail a conspiracy as big as the membership of the board. Boards never conspire to screw shareholders? Give me a break. And of course it's even easier to imagine the board conspiring to screw the public as creditor.

 

The Alarmist's picture

Still didn't stop the Named Exec Officers from hiking their salaries by 50% to 100% ... Sure, they went without a target bonus for 2009, but the pay raises more than covered that.

wang's picture
wang (not verified) Sep 19, 2011 2:00 PM

I highly doubt that an insider would communicate via an email in this manner unless they are totally naive or part of a half baked PR initiative. Notwithstanding this exchange caught my eye:

The foundation is a 501(c)(3) non-profit entity, and subject to strict controls by both state and federal law on the purposes that they can engage their assets for. It has a fiduciary responsibility that does not include benefiting GK. For example, everyone knows that there would be a world of difference in classifying an investment from Bill Gates, and one from the Bill and Melinda Gates Foundation. And that is precisely the issue here.

 

Foundations such as Kaiser's or Gate's or for that matter Soros's are often (almost always) a vehicle through which their benefactors can wield political, cultural and ideological influence often in concert with or as a surrogate for lobbying activities, political funding, channeling favors etc. The financial health of the foundation is therefore important maybe as important as the benefactors non charitable businesses.

 

e.g. NEPI is funded/part of by Kaiser's foundation (http://www.gkff.org/index.php?page=nepi)

http://nepinstitute.org/

Big Ben's picture

Private equiy has been anything but cautious when investing in new ventures. First they directed tons of money into very dubious dotcom ventures like pets.com and other dotcom firms that were burning through cash at a tremendous rate. Then they loaned even larger amounts of money to subprime mortgagees.

So for the government to provide loan guarantees to a company that private equity was afraid to touch seems incredibly foolhardy. And what would taxpayers have gotten if Solyndra had been successful? Nothing. Solyndra would certainly have moved its operations overseas at the earliest opportunity. Semiconductor manufacturing has mostly moved outside of the US because it is so much cheaper. And even the semiconductor manufacturing which is still done in the US has moved from California to lower cost states. A lot of semiconductor design is done in Silicon Valley, but there is very little manufacturing. The fact that Solyndra was planning to run a major fab operation in super high cost Northern California should have been a bright red flag indicating that something was very wrong.

Wall Street is very good at crafting very bad investments that appeal to the current investment fad. Wall Street spreads hype about a gold rush and then makes money by selling mining supplies. Most of the miners end up losing their shirts.

 

G. Marx's picture

Once again, why weren't the taxpayers at the head of the line should a BK occur? Let's not lose sight of the main issue.

goodrich4bk's picture

Did you read the article above?  It says very clearly that at the time of subordination the government loan would have paid only a nickle on the dollar because the entire enterprise would have collapsed.  The subordination was a gamble that new money would bridge a "transitory" cash shortage and yield a greater return on taxpayer money than a 95% loss.

In hindsight, it would have been better to take that nickle.  But private lenders make these same subordinations decisons all the time in similar circumstances.  

Almost Solvent's picture

Exactly - also accounts for why successor LLC was needed to put lipstick on this pig.

 

 

In any event, BK is not about truth or justice - just quick & dirty getting useful assets into someone else's hands for $$.

 

Walmart/Kaiser don't want to own a solar fabrication company. They want the pieces sold off to the highest bidder ASAP.

 

Wash, rinse, repeat.

 

BK 363 sale - free & clear - powerful shit baby. 

 

See who ends up with what - follow the $$

overmedicatedundersexed's picture

so who we got in media to spin this baby?? normal course of business that's the ticket..

sure some with direct interest get inventory for Pennies, all very normal

sure millions were spent in record time, where it went is not important to this insider. pardon me Bruce but LOL.  how much went to pay debt holders and angel investors ? and how much to build out??

obviously this insider is a mouth piece and/or part of the gang.. or incredibly dumb.

DaveyJones's picture

being inside and incredibly dumb are not always mutually exclusive

ItsDanger's picture

Any analysis on this issue needs a detailed breakdown of who made profits from this company directly or indirectly.  It shouldnt be that hard via forensic audit and FBI involvement.  That will spell it out clearly for everyone.  Its always about the money.

Edmon Plume's picture

You don't think that the FBI was involved to prevent a forensic audit?  This is a black eye on the administration and its cheerleaders.  It needed to be mopped up, and what better way than to inject a crack team of "good guys" to fight for Justice?

ItsDanger's picture

If thats the case, then what is the point of these charades?  Just cut cheques or wire transfer money around and no one would know.  Much easier.  You donate $5MM, I'll wire you $100MM to Dubai when I get elected.  Who would know the difference?

SqueekyFromm's picture

Plus, by having the government (FBI) involved, it casts a little intimidation factor onto the Solyndra people so that nobody will be too brave about blaming the other government people (DOE) of stupidity or carelessness in making the loan. What is amazing is how fast the FBI got involved when everything else the Obama administration does is slow slow slow.

Another thing is that when you go into bankruptcy, you have to disclose all your financial dealings, particularly those with INSIDERS, and there is a discovery process permitted by creditors. Plus IF you lie during your bankruptcy, then the FBI can get involved. Here, the FBI is involved first.

Sooo, one big question I have, is did Solyndra file its bankruptcy schedules yet??? I would love to see the questionaire part.

Squeeky Fromm, Girl Reporter

adr's picture

Sorry but I call BS on that guy. he obviously knows nothing and that is why he doesn't have to worry about the feds.

Are we to believe that Kaiser would drop a boatload of money and not expect a dime in return???? Yeah right.