Free Republic

The "green" loan scandal grows to include yet another seemingly hopeless company. The resignation of Jonathan Silver, the U.S Energy Department’s top loan officer, over the Solyndra scandal may be the tip of the iceberg. He supervised a much larger DOE loan program that suffers from the same problems as Solyndra: over the last 18 months, the Department has awarded more than $9 billion in below-market loans to auto companies under its Advanced Technology Vehicle Manufacturing (ATVM) Loan Program. The most troubling transaction: a $465 million loan to California’s Tesla Motors. Tesla received a loan rate of 1.6% from DOE...

When the White House announced the federal government would loan $465 million to Tesla, a California start-up company with plans to develop an all-electric sedan, President Obama called it an "historic opportunity to ensure that the next generation of fuel-efficient cars and trucks are made in America." The loan also represented a lucrative opportunity for Steve Westly, a major investor in the car company who had raised more than $500,000 for the president's campaign. In 2009, the U.S. Department of Energy lent more than half a billion dollars to companies backed by Westly's California venture capital firm. In 2010, the...