Solyndra and Subsidies

Public Service Management: Case Study: Solyndra and Subsidies Solar cell maker Solyndra went bankrupt despite receiving $528 million in federal loan guarantees.

The company took out a loan directly from the Federal Financing Bank, which is part of the Treasury Department, so when the company filed for bankruptcy and it became evident that it would not be able to repay its loan, the Obama administration was attacked by its critics for participating in the deal.

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This incident brought the entire Obama clean energy program under scrutiny, although only two out of about forty projects that received loans through the program defaulted. As an employee for the Department of Energy, you have been tasked with writing a report analyzing the issues associated with Solyndra and with the image of the clean energy program. Consider the following:

Please answer the following questions in regards to the case study, 1. Could this incident have been prevented? How could the government have better managed the fallout from the bankruptcy?

What factors contributed to the situation? I have attached Chapter 1 from the book along with Chapter 1 PowerPoint for one of the source. Reference: Cohen, S., Eimicke, W. B., & Heikkila, T. (2013). The effective public manager achieving success in government government (5th ed.). San Francisco: Jossey-Bass.

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