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Solyndra's Whorehouse Lender

Bruce Krasting's picture




 

If you want to find out what happened with Solyndra you have to follow the money. I did. The half billion dollars of taxpayer dough that is probably lost in Sol came from the Federal Financing Bank (“FFB”). It’s worth a look at this bank to see what else is going on.

FFB is a bank that is owned and controlled by the US Treasury. The chairman of the Board is the TSec. (Tim Geithner). With the (big) exception of the Post Office all of the loans at FFB are guaranteed by government agencies. Technically speaking, FFB has no risks on loans guaranteed by an agency like the DOE. But I don’t think that should absolve Tim Geithner of any responsibility regarding the losses the country faces with Solyndra. If he, (or anyone else at Treasury) puts their pen to a ½ billion loan, they better well know where the taxpayers money is going. That didn’t happen.

FFB has been around for 40+ years. I believe it has always been a bank that has been used and abused by whoever happened to be running the show at Treasury. For example; from 9/30/2008 (Pre - Tim and O) to 9/30/3009 (Post - Tim and O) the FFB lent out $17.1 billion to the nice folks at the National Credit Union Administration’s “Liquidity Fund”. NCU is the guarantor of the deposits in the country’s Credit Unions (similar to FDIC). They were up against it in 2009. They had had no money left in the till to insure that those deposits would be safe. A bailout was needed to avoid a crisis. But rather than have a public debate about this, the FFB just borrowed some money and wrote a check to NCU. Problem solved.

The following are the balance sheet assets of the FFB for fiscal year end 2008 and 09. Note that there were no outstanding loans guaranteed by the DOE in 08. But a year later the number had jumped up to nearly a Bil. It was clear back then that the FFB was rapidly becoming a policy tool of the new administration. By June 30th 2011 the DOE guaranteed loans at FFB has grown to $5.2B. Clearly the Administration is (was?) using the bank to facilitate it's objectives.

The borrowers identified as the beneficiaries of the FFB’s deep pockets include:

Abound Solar
Arizona Solar – UNC
Beacon
Great Basin Transmission
Kahuku Wind Power
Solyndra
Solar Partner I
Solar Partner II
And Solar Partner(s) III – VIII

The names on this list are the problems to be for the DOE. (I can’t wait to find out who we are partnering up with on the I – VIII deals)

The FFB/DOE has also been lending big bucks to some well know names.

Fisker Automotive, Inc.
Tesla Motors, Inc.
Ford Motors

These successful companies owe the FFB a total of $3.8 billion. There is one company that I don’t recognize. But they got $35mm in May at a real fine rate:

The Post Office has $12.9 large out with FFB. The PO has a debt limit of $14b. They will hit that in 2012 (and then go broke). The FFB has been funding the operating deficits at the PO for years. When O took office it was $7b. Playing, “Hide the losses at the PO” is a very old game in D.C.

The FFB also has an active role in providing the much needed lucre for Foreign Military Sales. As of June 30 there was $349mm of IOU’s. (I wonder who those “I”s are. Probably stable governments, right?) If you’re keeping score, the amount outstanding when Bush left office was 50% higher than today.

$33 billion (61% of FFB’s book) is out to Rural Electrics. It would appear that many parts of the country don’t have adequate utilities. Nor do they have the resources to fix the problems. The solution has been to lend them dirt-cheap money with functionally no maturity. This is just a silly accounting game to avoid recognizing that needed infrastructure expense(s) should have been on the budget long ago. This is a close-up of a section of the FFB report:

Note the long maturities and % rates. 35-year money for Lake Land (sounds like a nice place) at Treasuries +30. The following is a pic of all the re-financing's for May and June. I shrunk it because it would just clutter the page; it’s that long. Blow it up on your own or go to the FFB site and look up Press Releases. This goes on every month of the year. This stinks of boondoggle and pork. What are the administrative costs to oversee this? There has to be a better way.

I’m all for education. We’re dead in the water without it. I think there is a role for the government to assist in this. But the FFB? Why are they making loans? Is this just another way to avoid an expense? What are these guy’s in D.C. thinking? Is everything “on the arm” down there? Again, a close up and the totals for two months. This is silly, right?

A minor bad loan is the $493mm of Hope Now Bonds. A good chunk of this is still in cash. But not for long. Treasury is going to use some of this money for the big mortgage ReFi that is in the offing. When that happens there will be no hope of repayment of the Hope Bonds.

There is one more attractive feature for the Chairman of the FFB. With the exception of the notes from the PO, it’s all off balance sheet. When the “Debt to the Penny” calculation is made by the Treasury, the (net of PO) $33b at FFB borrowings are excluded.

In Wall Street terms, that makes the FFB a SPIV and it’s a whorehouse.

Note: I've written about the FFB before. I smelled trouble with this bank. My nose was working.

Here, here, here or here.
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Sat, 06/09/2012 - 13:45 | 2510441 monad
monad's picture

I have 6 employees. I have to compete with these bailed out corporations. Where is my loan? Where is my bail out? Oh, right. What was I thinking.

Sun, 09/18/2011 - 10:48 | 1681815 overmedicatedun...
overmedicatedundersexed's picture

knowing something none of us can do anything about is frustrating and energy sapping..70% of America wanted the borders secured that was 10 yrs ago, 70%+ did not want bail outs in 08,09. We did not want wars that never end and gestapo HLS agents in all our airports..

change never comes - the socialist are all corrupt the GOP elite as well

I do not blame John Q public, they accept the fact nothing will remove this corruption and so act as indifferant or try to skim off the system.

Living to see justice is a very lonely exsistance and a crown of thorns.

Bruce I salute you and worry for you.can you keep your sanity when touching the root of evil.

Mon, 01/16/2012 - 09:56 | 2068423 adrin
adrin's picture

That is a really nice read for me, Must admit that you are one out of the top bloggers I ever saw.Thanks for posting that informative article. Luton airport parking and if you are looking for some best deals on meet and greet airport parking services you can get easily but im sure you need to eat some delicious things for that you need to learn sushi recipes

Sun, 09/18/2011 - 10:30 | 1681789 vast-dom
vast-dom's picture

Bruce whoring is actually one of the last honest jobs left so please refrain from slandering that venerable profession. Remember: at the whorehouse you pay exactly for what you get and the price structure is defined UP FRONT.

 

Solyndra and FFB, Timmy, Bernank et. al are the farthest thing from whores; they are the most malevolent shits that not only always have to be right but will never ever admit to a mistake all while robbing and destroying the planet. These are sociaopathic entities and individuals.

 

The most beautiful case in point is how Solyndra, propped up to essentially the Nth by Teh GoV, still could not compete with China; in fact, the numbers from the day the loan was conceived never added up -- if you presented the company as a case study in an econ 101 class it would not pass the most basic accounting/stress test. 

 

FUCK YOU FFB

FUCK YOU OBUMMER

FUCK YOU TIMMY

FUCK YOU SOLYNDRA (where the COE's and execs still got their enormous pay-days [follow that money Bruce])

FUCK YOU REPUBS

FUCK YOU DEMS

FUCK THE STATUS QUO

FUCK ETC. ETC. ETC.

Sun, 09/18/2011 - 10:09 | 1681753 thunderchief
thunderchief's picture

So now renewable energy is at the same level as wall street whores now. 

It's not about doing good things, but all about Money.  Fiat gargage.  This is like Enron in reverse.  Telling the world renewables are a scam.  Good job!

So what is the price tag on the last Blue fin Tuna swimming in our Plastic filled oceans?

Renewable energy should have always been a strategic push by government, and not brought down to the Wall Street Tactical level, where it can be torn to pieces by crooks.

Too bad.  Go back to Fracking, Nuclear, oil. 

And enjoy that last Blue Fin, and all you can eat research whale meat Japan.  I'm sure one of your 100+ year old farts will enjoy it with one of their AV Idol 18 year old whores.

Fuckers.. All of you.

 

Sun, 09/18/2011 - 10:04 | 1681746 Atomizer
Atomizer's picture

Nice work Bruce!

Sun, 09/18/2011 - 09:23 | 1681684 Narcolepzzzzzz
Narcolepzzzzzz's picture

Bruce

Solar Partners I, II, IV & VIII are LLC's connected to BrightSource Energy for the construction (by Bechtel) of the Ivanpah Solar Project in the Mojave Desert.

http://www.energy.ca.gov/sitingcases/ivanpah/index.html

http://en.wikipedia.org/wiki/Ivanpah_Solar_Power_Facility

http://www.recovery.gov/Transparency/RecipientReportedData/Pages/Recipie...

Sun, 09/18/2011 - 08:48 | 1681648 Silver Alert
Silver Alert's picture

Is it discrimination if they only lend to HBCU's on the sly?

 

http://1.bp.blogspot.com/-Y5v-WDvaD98/TnTS6H-p6YI/AAAAAAAACeI/oeowQnQeoi...

Sun, 09/18/2011 - 08:38 | 1681633 Mercury
Mercury's picture

The NYT, believe it or not, delves into the dirt a bit this morning:

That [debt restructuring] decision in February gave Solyndra a temporary reprieve and a chance to survive, but it also forced the government to waive its privilege as first creditor in the event of a bankruptcy — which then occurred at the end of August.

http://www.nytimes.com/2011/09/17/us/politics/queries-over-government-le...

 

Sun, 09/18/2011 - 05:27 | 1681489 Pitchman
Pitchman's picture

The money always tells the story. 

Qui Bono?

Excellent forensics.

If you're interested in the depth of the Rabbit Hole and the psychopaths within, see the Cathrine Austin Fitts piece; "Dillon Reed and Company: And the Aristocracy of Stock Profits" at the bottom of: The Looting of America: Happy Labor Day

- Inflection Point

 

Sun, 09/18/2011 - 07:30 | 1681579 Optimusprime
Optimusprime's picture

I agree with your point. 

 

The Latin phrase you need should be "cui bono" not "qui bono".

Tue, 11/01/2011 - 10:04 | 1832006 Pitchman
Pitchman's picture

Opt.  You are correct.

Tue, 12/27/2011 - 14:52 | 2014232 haibop
Sun, 09/18/2011 - 00:29 | 1681305 Georgesblog
Georgesblog's picture

At the end of the day, I observe that the day's news seemed to be filled with characters, playing roles, in the same stage play, but without apparent direction. Perhaps they fill there roles because they can't be anything but what they are. In this specific instance, the scandal is the culmination of systematic indoctrination. The parties involved are so amoral and without standards that they play out what they are, without a twinge of conscience. One takes the handout, and the other peddles influence, at the taxpayer's expense.  The conflict between fantasy and reality plays out and repeats, every day. I wrote about this turmoil in the context of people who communicate with each other. Incidents like the situation described above may not be so pleasant as a friendly lunch gathering.

 

http://georgesblogforum.wordpress.com/2011/06/18/war-of-the-money-worlds/

Sat, 09/17/2011 - 23:47 | 1681242 Georgesblog
Georgesblog's picture

There's no mystery, here. When the government pours out the largesse, it's no blessing at all. How much borrowed debt would you want, hanging over your head. Some people call it all good, and take the bait. The end of this is poverty.

 

 http://georgesblogforum.wordpress.com/2011/06/20/the-real-weapon-of-mass-destruction-poverty/

Sat, 09/17/2011 - 23:23 | 1681201 ZeroAffect
ZeroAffect's picture

Thanks, Bruce. You are a real credit to your country and its citizens (at least most of us). We benefit from your diligence. Keep up the good work.

Also, some very good posts in this thread. Thanks to all who contributed good links and input.

Sun, 09/18/2011 - 02:18 | 1681400 Freddie
Freddie's picture

Amazing job by Bruce.

Sat, 09/17/2011 - 23:08 | 1681182 ThirdCoastSurfer
ThirdCoastSurfer's picture

Wow! You really need to look into Vehicle Production Group!

"The world's first & only wheelchair accessible vehicle"  Really?

The BOD for VPG  reads like a Washington's Who's-Who & VPG is clearly an investment vehicle of Three Seasons Capital, much as Solyndra was for Redpoint ventures.

 

http://www.vpgautos.com/vpg-company/management-team

Sat, 09/17/2011 - 22:02 | 1681050 mikmid
mikmid's picture

Good snooping Bruce.

Sat, 09/17/2011 - 21:56 | 1681038 jimmyjames
jimmyjames's picture

If you want to find out what happened with Solyndra you have to follow the money.

**********

Good job as always Bruce-

If you want to find out what's happening or what's likely to happen-

Always follow the money-

http://bit.ly/gV5gEM

Sat, 09/17/2011 - 20:25 | 1680833 Careless Whisper
Careless Whisper's picture

...puts their pen to a ½ billion loan, they better well know where the taxpayers money is going. That didn’t happen.

oh really?!

Sat, 09/17/2011 - 22:01 | 1681041 cara leaf
cara leaf's picture

For more insurrection see:  http://carolelieff.com

This doesn't really apply to this article but it's important and I can't seem to respond to the older California pension articles.

I'm sure every state in the union has its own corrupt pension system version of California's. 

Go to http://lgcr.sco.ca.gov

THIS WEBSITE LISTS ALL CALIFORNIA PENSION RECIPIENTS WITH THE AMOUNT OF THEIR PENSIONS.  i promise you'll be shocked.  I was expecting the worst, and I was even shocked.

Here is the clandestine (that means well-hidden) roster of every current recipient of a penson from State of California.  Please note the FIRST salary (i.e, for a sheriff deputy it's $59 K) and then look to the last column, where it shows their pension.  Our state, in its infinite wisdom and love of graft, pays its 90% pensions (until eternity, mind you) based solely on the salary + overtime + whatever else they can steal they received THAT ONE LAST YEAR OF SERVICE.  Don't blame me.  I'm just the messenger.

For anyone who wants to look up their own state's pension corruption, it's generally on the State Comptroller's website.  However, don't be surprised if it's been disabled or is impossible to figure out.  I had to go to the County Auditor IN PERSON knowing this is all FREEDOM OF INFORMATION stuff and they have to show it to you IMMEDIATELY upon request, THAT MINUTE.  Since they didn't want me rifling through all their records for a week, they gave me the legit website.

Oh, forgot one thing.  I think I might have mentioned it looked a little like a COVER-UP.  That got some feet moving.

For more insurrection: http://carolelieff.com

Sun, 09/18/2011 - 05:25 | 1681476 Pitchman
Pitchman's picture

As I read your comment I thought of Cathrine Austin Fitts. 

You have a system that's not being run to be productive as an economy or healthy as an economy.  Its being run to centralize control. - Cathrine Austin Fitts

I did a post featuring a fascinating interview on corruption with her.  If you're interested in the depth of the Rabbit Hole and the psychopaths within, see the "Dillon Reed and Company: And the Aristocracy of Stock Profits" link at the bottom of: The Looting of America: Happy Labor Day

I went to your site and really like the work!  I wanted to post a comment there but could not find a registration link for word press.  HOW TO SHIP JOBS OVERSEAS + GET A TAX BREAK! was great.    I would like to post this piece with credits and links your work and site. 

Pitchman aka EC - Inflection Point

Sat, 09/17/2011 - 20:35 | 1680847 CompassionateFascist
CompassionateFascist's picture

Look at it this way: a gang of big $$$ contributors and bundlers gave Obama a lot of money to buy the '08 election. He was an excellent investment: via a laundry called Solyndra, each has gotten back 10 or 20 times what they put in. Beats gold and silver fer shure.

Sat, 09/17/2011 - 21:21 | 1680934 jeff montanye
jeff montanye's picture

and it is so not obama uniquely.  he has his singular disabilities and some may even appear in this dimension, but it is the way it is done and has been done for so long probably no one living saw the beginning.  ron paul '12.

Sat, 09/17/2011 - 21:44 | 1681006 Greenhead
Greenhead's picture

Jeff,

It may have been going on for some time but I want to tell you I grew up in Mexico.  In the old days, corruption was the local traffic cop demanding 10 pesos because you were underage and driving without a license.  Then it was a bigger mordida and the real money came from doing business with the government and connections with the PRI made that doable.  Once everyone understood it was all under the table, anything went.  Money is power, forget laws.  Freedom came from having enough wealth and influence to circumvent the law.  And now, and now, poor country is awash in real corruption.  Laws?  Good luck.

What I am saying is this, when we shrug our shoulders and say "this is how it's always been" we are condoning the downward slide to the old rule by absolute power and the rule of law, which is the hope of most of us, goes out the window.

Sun, 09/18/2011 - 11:02 | 1681839 Moe Howard
Moe Howard's picture

You are exactly right. I lived in Chicago under one party rule, and it was the same. If you paid off the right people, even murder could be overlooked.

We want our country back.

Sat, 09/17/2011 - 20:18 | 1680822 Ned Zeppelin
Ned Zeppelin's picture

The only way you get access to financing through this bank is through political connections. It is a politico-pet bank. 

Not sure it horrifies me if the loans are collateralized and the default rate is low. But I agree it is a workaround for legislation to solve the deficiencies addressed by these loans. And therefore a pet bank for the Executive Branch. 

Sat, 09/17/2011 - 20:11 | 1680810 onlooker
onlooker's picture

AGAIN, Readers be aware that this is a very brave man.

Sat, 09/17/2011 - 20:39 | 1680855 CompassionateFascist
CompassionateFascist's picture

True. When Catherine Austin Fitts was Housing Undersec. in Bush '41 regime, she tried to investigate this sort of thing. Got a visit from the Men in Black: "desist, or you will meet Judge Crater."

Sun, 09/18/2011 - 05:27 | 1681436 Pitchman
Pitchman's picture

Reading cara leaf above I thought of Cathrine Austin Fitts. 

You have a system that's not being run to be productive as an economy or healthy as an economy.  Its being run to centralize control. - Cathrine Austin Fitts

I did a post featuring a fascinating interview on corruption with her.  If you're interested in the depth of the Rabbit Hole and the psychopaths within, see the "Dillon Reed and Company: And the Aristocracy of Stock Profits" link at the bottom of: The Looting of America: Happy Labor Day

See: Inflection Point

Sat, 09/17/2011 - 21:26 | 1680951 john39
john39's picture

she did an interview on Kaiser awhile back... mentioned finding dead dogs on her doorstep and other weird warnings...

Sat, 09/17/2011 - 19:36 | 1680780 Motley Fool
Motley Fool's picture

Excellent investigative reporting. :)

Sat, 09/17/2011 - 19:00 | 1680723 nah
nah's picture

GUARANTEED BITCHEZ!

Sat, 09/17/2011 - 17:56 | 1680620 dust to dust
dust to dust's picture

 Mr. Tim Geithner does have a family. It's OK now, but we might have to move.   

Sat, 09/17/2011 - 16:56 | 1680493 Eireann go Brach
Eireann go Brach's picture

Whats the dffierence between the Obama Administration and a Whore House?...Nothing!

Sun, 09/18/2011 - 02:13 | 1681394 OldPhart
OldPhart's picture

At a whorehouse YOU do the screwing.

Sat, 09/17/2011 - 17:44 | 1680600 gmrpeabody
gmrpeabody's picture

You don't feel as dirty when you leave a whore house.

Sat, 09/17/2011 - 21:32 | 1680974 MrSteve
MrSteve's picture

Houses of ill repute have satisfied customers.

Sat, 09/17/2011 - 21:26 | 1680952 jeff montanye
jeff montanye's picture

and, at the contributions measured in hundreds of dollars level, you get so much more value for your money from the girls of joy (or so i've heard).

Sat, 09/17/2011 - 16:51 | 1680481 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

9/30/3009 (Post - Tim and O)

On a long enough timeline...

Sat, 09/17/2011 - 16:38 | 1680448 Georgesblog
Georgesblog's picture

There is so much wrong with the currency, itself. It is an abomination that dirties everyone and everything it touches. Getting the answers to "The Four Money Questions" identifies the guilty parties and what they did.

 

http://georgesblogforum.wordpress.com/2011/09/16/the-four-money-questions-update-09-162011/ 


Sat, 09/17/2011 - 21:56 | 1681040 Georgesblog
Georgesblog's picture

Negative reactions are ok. It just proves that people still have a pulse. I just listen for the first "Ouch!" when their ignorance gets them burned. If someone didn't like "The Four Money Questions", they certainly won't like "The Real Weapon of Mass Destruction: POVERTY"

 

http://georgesblogforum.wordpress.com/2011/06/20/the-real-weapon-of-mass-destruction-poverty/

Sat, 09/17/2011 - 16:29 | 1680418 adr
adr's picture

So let me get this straight... Black colleges were loaned $453 million in one year after being loaned $383 million the year before all under 5% with generous repayment terms?

How much do these damn universites owe the government? How much is being paid back? Does it even get paid back?

All so some ghetto trash can play football, sell drugs, pop out babies, and play in a marching band only to drop out and keep the grant money!!!!

So it is true that black universities are just another extension of the welfare system.

Sat, 09/17/2011 - 16:21 | 1680381 Cydonian
Sat, 09/17/2011 - 15:45 | 1680272 TheArmageddonTrader
TheArmageddonTrader's picture

These are the fine gentlemen behind Abound Solar

 

http://hotair.com/archives/2010/07/10/obama-touts-400m-loan-to-solar-com...

Sat, 09/17/2011 - 20:56 | 1680876 CompassionateFascist
CompassionateFascist's picture

Read this story to the end: "So why did the gov't bet hundreds of millions...we don't know." Yes we do: these solar rackets are vast money laundries for Zero and his friends. They bankroll his political campaigns, "invest" in these bogus companies, and skim off in huge multiples before the company files for bankruptcy. See also Brazilian State Oil: $3 billion in US money....Soros invested c. $200 million in Obama Inc. '08, and is big in Brazilian oil. Does night follow day?  

Sat, 09/17/2011 - 18:12 | 1680645 Milestones
Milestones's picture

Hang this polish cocksucker. I'm allowed to say that; my grandfather from the old country would be happy to pull the rope. Thanks for the post.    Milestones

Sat, 09/17/2011 - 15:40 | 1680253 HedgingInfinite...
HedgingInfiniteRiskIsNotPossible's picture

LOL.

Government.

Sat, 09/17/2011 - 15:36 | 1680247 monopoly
monopoly's picture

As usual Bruce, super post. This will not bring obama down but may seal his fate next year. One can hope. And Geithner never gets indicted. What a corrupt country this has turned into. A once Great Nation.

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