As Dems’ “Bank of Washington” Politicizes Layoffs, It Puts Taxpayers On the Hook

October 2, 2012

As Dems’ “Bank of Washington” Politicizes Layoffs, It Puts Taxpayers On the Hook

From Solyndra to the Defense Contractors Impacted by the Sequester, Democrats Have Urged Companies to Delay Layoff Announcements Past Election Day

Democrats are openly encouraging defense contractors to break the law by not sending out legally required layoff warnings to workers, and they want taxpayers to foot the bill for any legal expenses that result from this law-breaking.
It’s not the first time Democrats have tried to punt a politically toxic layoff announcement past Election Day. The Obama administration urged now-bankrupt Solyndra to delay its first round of layoff announcements past Election Day in 2010.
In both situations, Democrats have shown a willingness to put taxpayers on the hook so long as it benefits them. No wonder Solyndra’s donors referred to the Democrats’ “Bank of Washington.”

Democrats are openly encouraging defense contractors to break the law by not sending out legally required layoff warnings to workers, and they want taxpayers to foot the bill for any legal expenses that result from this law-breaking:

“WHITE HOUSE TO CONTRACTORS: HOLD OFF ON LAYOFF WARNINGS”: (Jeanne Sahadi, “White House to Contractors: Hold Off on Layoff Warnings,” CNN, 9/28/2012)

OBAMA ADMINISTRATION “SAID IT WOULD COVER LEGAL COSTS” IF CONTRACTORS HAVE TO FIRE WORKERS AND ARE SUED FOR BREAKING THE LAW: (Jeanne Sahadi, “White House to Contractors: Hold Off on Layoff Warnings,” CNN, 9/28/2012)

IN OTHER WORDS, THE OBAMA ADMINISTRATION WANTS TO LET COMPANIES FIRE WORKERS WITHOUT WARNING AND WILL HAVE TAXPAYERS PICK UP THE LEGAL FEES: (Jeanne Sahadi, “White House to Contractors: Hold Off on Layoff Warnings,” CNN, 9/28/2012)

POLITICAL MOTIVE? COULD HAVE BEEN “RASH OF LAYOFF NOTICES SPOOKING EMPLOYEES RIGHT BEFORE ELECTION DAY”: “Defense contractors in particular have warned for months that the upcoming sequester would cost jobs in their industry. And Lockheed Martin’s CEO has said publicly he may be forced to issue notice this fall of possible layoffs in 2013. If other contractors follow suit, there could be a rash of layoff notices spooking employees right before Election Day.” (Jeanne Sahadi, “White House to Contractors: Hold Off on Layoff Warnings,” CNN, 9/28/2012)

NATIONAL ASSOCATION OF MANUFACTURERS: 3.44 MILLION JOBS COULD DESTROYED BY SEQUESTER FROM 2012 – 2022: (“Defense Spending Cuts: The Impact on Economic Activity and Jobs,” National Association of Manufacturers, Accessed 7/18/2012)

It’s not the first time Democrats have tried to punt a politically toxic layoff announcement past Election Day. The Obama administration urged now-bankrupt Solyndra to delay its first round of layoff announcements past Election Day in 2010:

OBAMA ADMINISTRATION PRESSURED SOLYNDRA TO PUSH LAYOFF ANNOUNCEMENTS PAST 2010 MIDTERM ELECTION:

AS SOLYNDRA PROBLEMS BEGAN TO LEAK, SOLYNDRA CEO WARNED OBAMA’S TEAM ON OCT. 25, 2010 THAT HE WOULD ANNOUNCE LAYOFFS ON OCT. 28: ”Solyndra’s chief executive warned the Department of Energy on Oct. 25, 2010 that he intended to announce worker layoffs on Oct. 28. He said he was spurred by numerous calls from reporters and potential investors about rumors the firm was in financial trouble and was planning to lay off workers and close one of its two plants.” (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

NEWS OF PENDING SOLYNDRA LAYOFFS MADE IT TO TOP ECHELONS OF OBAMA ADMINISTRATION: “Harrison’s e-mail was forwarded to program director, Jonathan Silver, who then alerted White House climate change czar Carol Browner and Vice President Biden’s point person on stimulus, Ron Klain. Browner asked for more information about the announcement, and Chu’s chief of staff explained he had left a voice mail message on her cell phone.” (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

BUT OBAMA’S TEAM PUSHED BACK, URGING A DELAY OF THE LAYOFF ANNOUNCEMENT UNTIL THE DAY AFTER THE ELECTION: ”But in an Oct. 30, 2010 e-mail, advisers to Solyndra’s primary investor, Argonaut Equity, explain that the Energy Department had strongly urged the company to put off the layoff announcement until Nov. 3. The midterm elections were held Nov. 2, and led to Republicans taking control of the U.S. House of Representatives.” (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

DOE PRESSURE CAME AS SOLYNDRA WAS STILL DEPENDENT ON DOE FUNDING FOR THE SUBSEQUENT MONTH: (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

SURE ENOUGH, SOLYNDRA BUMPED ITS LAYOFF ANNOUNCEMENT TO NOV. 3, A DAY AFTER THE ELECTION: “On Nov. 3, 2010, Solyndra announced it would lay off 40 workers and 150 contractors and shut down its Fab 1 factory.” (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

AND DOE HELD UP ITS PART OF THE BARGAIN DESPITE SOLYNDRA’S VIOLATIONS OF LOAN TERMS: ”The department agreed to continue giving Solyndra installments of its federal loan despite the company’s failure to meet key terms of the loan, and in February restructured its loan to give investors a chance to recover $75 million in new money they put into the company before taxpayers would be repaid.” (Carol Leonnig, “Solyndra: Department of Energy ‘Pushed Hard’ for Company Not to Announce Layoffs Until after 2010 Mid-Term Elections,” The Washington Post, 11/15/2011)

POLITICAL PRIORITIES DOMINATE ECONOMIC CONCERNS, WELL BEING OF WORKERS:

SOLYNDRA INVESTOR: OBAMA’S “DOE REALLY THINKS POLITICALLY BEFORE IT THINKS ECONOMICALLY”: (Amy Harder, “QUICK TAKE: “E-mails Suggest DOE Put Politics Above Economics with Solyndra,” National Journal, 11/16/2011)

OFFICIALS DISCUSSED “POLITICAL FALLOUT” WHILE “SOLYNDRA TOTTERED”; “RARELY, IF EVER” WERE WORKERS CONSIDERED: “They show that as Solyndra tottered, officials discussed the political fallout from its troubles, the ‘optics’ in Washington and the impact that the company’s failure could have on the president’s prospects for a second term. Rarely, if ever, was there discussion of the impact that Solyndra’s collapse would have on laid-off workers or on the development of clean-energy technology.” (Joe Stephens and Carol D. Leonnig, “Solyndra: Politics Infused Obama Energy Programs,” The Washington Post, 12/25/2011)

OBAMA’S “GREEN” PROGRAM “INFUSED WITH POLITICS AT EVERY LEVEL”: “Meant to create jobs and cut reliance on foreign oil, Obama’s green-technology program was infused with politics at every level, The Washington Post found in an analysis of thousands of memos, company records and internal e-mails. Political considerations were raised repeatedly by company investors, Energy Department bureaucrats and White House officials.

“The records, some previously unreported, show that when warned that financial disaster might lie ahead, the administration remained steadfast in its support for Solyndra.” (Joe Stephens and Carol D. Leonnig, “Solyndra: Politics Infused Obama Energy Programs,” The Washington Post, 12/25/2011)

In both situations, Democrats have shown a willingness to put taxpayers on the hook so long as it benefits them. No wonder Solyndra’s donors referred to the Democrats’ “Bank of Washington”:

CONGRESSIONAL REPORT: “POLITICAL PRESSURE” TO BLAME FOR FAST-TRACKED LOAN TO NOW-BANKRUPT SOLYNDRA: (“E-mails Show Ex-Solyndra CEO Thanked ‘Bank of Washington,’ as New Report Rips Loan Process,” Fox News, 8/2/2012)

SOLYNDRA CEO THANKED “THE BANK OF WASHINGTON”: (“E-mails Show Ex-Solyndra CEO Thanked ‘Bank of Washington,’ as New Report Rips Loan Process,” Fox News, 8/2/2012)

SOLYNDRA INVESTOR: “WHILE THAT’S GOOD FOR US, I CAN’T IMAGINE IT’S A GOOD WAY FOR THE GOVERNMENT TO USE TAXPAYER MONEY”: “But privately, at least one investor was concerned, writing in an email that while Solyndra won a loan of more than $500 million, it had revenues of less than $100 million and wasn’t yet profitable: ‘… while that’s good for us, I can’t imagine it’s a good way for the government to use taxpayer money…’” (Jim McElhatton, “Emails: Solyndra Took Sales Pitch Directly to Obama,” The Washington Times, 8/2/2012)

As Dems’ “Bank of Washington” Politicizes Layoffs, It Puts Taxpayers On the Hook http://ow.ly/eacna