Beam me to Planet Gore !
Posted on 09/28/2011 12:33:34 PM PDT by jazusamo
Sitting at the center of the Solyndra scandal is an off-balance-sheet bank at the Treasury Department that dates back to 1973.
This little-known government bank, the Federal Financing Bank [FFB], had a zero balance in 2008 for green energy projects, but now, with little Congressional oversight, it is giving out billions of dollars in loans to White House pet projects often at dirt-cheap interest rates below 1%.
In July alone, the government bank, which had $61 billion in assets, lent nearly three quarters of a billion dollars in taxpayer funds with no Congressional checks and balances.
Plus the bank is funding the insolvent U.S. Post Office; the White House’s expensive green car projects at Ford Motor, Nissan and Tesla Motors; a $485 million loan to an expensive solar project that’s lost $160 million over the last three years that’s backed by Google, BP and Chevron; plus the FFB is funding the teetering HOPE housing bailout program, which gives delinquent mortgage borrowers breaks on their loans.
And according to KPMG’s audit report of the bank, the FFB is losing billions of dollars in taxpayer money because it is forgoing collecting interest costs on already inexpensive loans that are financing projects at agencies like the Agriculture Dept.
What’s scary for taxpayers is this: The FFB can borrow unlimited amounts of taxpayer money from the Treasury for these kinds of political pet projects. Under the 1973 “FFB Act, the bank may, with the approval of the Secretary, borrow without limit from the Treasury,” says the bank’s audited statements from KPMG.
The Treasury Department’s inspector general is now investigating the bank over its $528 million loan to Solyndra. FFB’s chairman of the board is Treasury Secretary Tim Geithner, and the bank’s board executives are Treasury officials.
(Excerpt) Read more at foxbusiness.com ...
Ping!
I just saw that piece. Is there no end to this??? Where is the American Outrage?
And what the hell happened to that swamp that was supposed to be drained? Can the Senate Banking Committee do anything about this? How much of this crap are we supposed to just sit back and take?
Great minds find the same stories...
Ah, ok. Area-51 bank, sorta.
The, Does-Not-Exist bank.
Stroke of the pen, law of the land —kinda slick.
Sounds like the bank is the 0bama Cabinet’s personal ATM. I hate these people.
1. off the books
2. unelected
3. unlimited borrowing authority
4. headed by Geithner, formerly of Goldman Sachs
ROAD TO SERFDOM EXPRESS...?!?!!?! OMFG...!!!
bump.
I know impeachment will not happen but if ever a president deserved it Obama does.
That was really close and it is a great article.
You hit the nail on the head and I’d bet the turkey in the WH will deny knowledge of it.
The list, ping
Let me know if you would like to be on or off the ping list
You can’t just blame Obama for using a tool set up under Richard Nixons administration. No telling how this thing has been used over the decades. obviously it’s there for any one to do whatever. Basically they seem to be giving away fiat money at will. Where’s Ron Paul on this. Go get ‘em Ron!
You’re correct but like is brought out in the article, Obama’s stimulus opened the floodgates on these green energy loans thru this bank.
I think (lament, agonize) about things like this when I am doing my taxes each year. I have to sign that damn 1040 under the threat of a penalty of jail and fines, and my hard earned dollars vanish into black holes like this.
This is a perfect statement on why government should NOT be the lender of last resort. $485 million is chump change to these companies. (Chevron $14 billion in cash, BP $20.0 billion, Google $35 billion) Yet they do not want to lend one more dime to these clowns... WHY does the government?
I would also bet that these companies do not guarantee the debt. However, if Joe Smith went to the SBA you can guarantee he would personally guarantee the loan and mortgage his house. This is crony capitalism...
Could be the slush fund Geitner just joined with IMF and Eu to bail out nations over there. No doubt pulling from it for European ventures.
Yep, no doubt about it. I'd bet money connections can be found between high up people in these companies and the president, some of his close friends or the Dem party and contributions.
Solyndra and their bankruptcy is only the tip of the iceberg, IMHO.
Here’s a list of the major loans outstanding.....
(numbers all in thousands, e.g. the Post Office owes $12 Billion)
Loans receivable at September 30, 2010, consist of the following:
Rural Utilities Service, Department of Agriculture
$28,905,983
U.S. Postal Service
$12,000,000
Credit Liquidity Fund, National Credit Union Administration
$10,100,705
Department of Energy
$2,931,043
Rural Utilities Service, Department of Agriculture
certificates of beneficial ownership
$2,357,900
General Services Administration
$1,973,049
Historically Black Colleges and Universities, Department
of Education
$613,870
Foreign Military Sales, Department of Defense
$417,255
Veteran Administration Transitional Housing Program
$4,836
Small Business Administration
$2,130
Federal Railroad Administration, Department of
Transportation
$1,520
Total loans receivable
$59,308,291
_____
So, how is the U.S. Post Office going to pay back it’s loan, what about the Black Colleges?
http://www.treasury.gov/ffb/financial-statements/FFB%20Financial%20Statements%20FY2010.pdf
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