Solyndra Loans as Liar’s Loans, William Black

William Black is a Certified Polizeros Hero for his work in exposing control fraud and working tirelessly for regulation of financial derivatives. He is the author of The Best Way To Rob A Bank is To Own One. When he say Solyndra loans were liar’s loans, I listen.

Lehman engaged in extensive accounting and securities fraud and caused massive losses by selling endemically fraudulent liar’s loans to the secondary market. If Soyndra’s controlling managers made false disclosures analogous to those made or permitted to go uncorrected by [Lehman CEO] Fuld, then they too face a serious risk of criminal prosecution – it we ever replace Attorney General Holder with a prosecutor.

The administration exposed the government to a gratuitous risk of loss of hundreds of millions of dollars in order to achieve an overarching priority – they wanted a presidential photo op. If that isn’t a scandal, if Nocera thinks it is merely business as usual, then our failure to hold Dick Fuld, President Obama, and a host of other elites to a higher standard of accountability is the scandal that will generate repeated scandal.

And of course, where there are dicey, murky deals, you will always find Goldman Sachs.

Solyndra technically defaulted in Dec. 2010 yet DOE gave them more money in early 2011 and allowed a $75 million private loan to be senior to their. This does not pass the smell test especially considerinbg the private loan was from a company linked to billionaire Democratic contributor George Kaiser. Since Solyndra now may not be worth more than $75 million at its coming auction, this means the government loses every penny.

The creditor’s committee for the bankruptcy says the sale is being “unneccessarily expedited.”