Interesting development but at the end of the day Tim Geithner is still head of the Treasury Department.
(ABC News) — The Treasury Department’s inspector general has opened a new front in the investigation of the government loan to Solyndra, the now bankrupt company that had been touted as a model of President Obama’s ambitious green energy program, ABC News and the Center for Public Integrity/iWatch News have learned.
The new probe involves the $535 million loan, arranged by the Energy Department, but actually processed by the Federal Financing Bank, a government lending institution that falls under Treasury’s control. Already, the FBI and the Energy Department’s inspector general have executed search warrants at Solyndra’s headquarters and questioned company executives.
“We’re going to look at everything the FFB had to do with its role in this thing,” Rich Delmar, a spokesman for the Treasury Department’s inspector general told ABC News and iWatch News.
Word of the broadening probe came as the head of the Energy Department’s loan program came before Congress at a contentious hearing on Capitol Hill Wednesday.
After spending months touting the Obama administration’s decision to loan $535 million to Solyndra, top officials took a new tack Wednesday while testifying about the company’s abrupt shut-down and bankruptcy: the loan, they said, was actually the Bush administration’s idea.