"White House Budget Office Raised Risk on Big Solar Loan Guarantee"

"The White House budget office raised flags about the first energy loan guarantee awarded under the Obama administration, adding another layer of questions to the taxpayer backed financing now at the center of a House investigation.

In 2009, as the Department of Energy pushed to close the $535 million loan guarantee to California solar panel maker Solyndra Inc., the Office of Management and Budget concluded the financing was a greater risk to taxpayers than did DOE, iWatch News has learned. That higher risk rating, in turn, forced the government to set aside more money in case the company defaults on payments.

The Department of Energy pressed ahead, formally approving the deal in September 2009 while portraying the Solyndra loan guarantee as a symbol of President Obama’s quest to spread green energy projects with government backing."

Ronnie Greene and Jeremy Borden report for iWatch News August 2, 2011.

Wednesday, August 3, 2011