Issa to Investigate Solyndra & LightSquared

Rep. Darrell Issa said Tuesday that his House Oversight and Government Reform Committee plans to investigate government loan programs to private corporations in light of allegations of improper dealings between the White House and failed energy company Solyndra and wireless start-up LightSquared.

While the LightSquared incident is apt to degenerate into "he said he said" theatrics, the Solyndra scandal may have more staying power. When Solyndra executives testify before the House Energy and Commerce Committee they intend to take the fifth. They had previously stated they would not invoke the fifth amendment if they were given a week to prepare. The "most transparent administration ever" will probably not like the optics of seeing the principals of their green energy centerpiece all tight lipped and lawyered up. Expect calls for a special prosecutor.

Separately, House Energy and Commerce Chairman Fred Upton and two other committee members said they would seek information on the financial condition of 14 projects to which the Energy Department is poised to award loans, as well as on other pending loan guarantees. The GOP lawmakers said they were concerned that the Energy Department might be “rushing” to award $9 billion in loan guarantees before the guarantee program expires at the end of the month. They said that the department’s haste could lead to “risky investments.

For what it's worth, Solyndra's debt was rate "B" or speculative by Fitch.