President Obama Defends Solyndra Loan, Remains Committed To Green Energy

WASHINGTON -- (CBS SF)— President Barack Obama has made his staunchest defense yet of the failed half-billion dollar federal loan to now-bankrupt Bay Area firm Solyndra.

But it appears the President will remain committed to keep lending money to green energy entrepreneurs.

In a White House news conference, the President said there was nothing political about the decision to lend Solyndra $528 million to build cylindrical solar panels.

KCBS' Doug Sovern Reports:

"There were going to be some company's that did not work out and Solyndra was one of them. But the process by which the decision was made was on the merits. It was straightforward," said the President during his address on Thursday.

Mr. Obama said he's not about to back down from investing in cutting-edge companies, despite vociferous opposition now from Republicans in Congress, including Florida Congressman Lamar Smith whose subcommittee is investigating the Solyndra fiasco.

"Despite the fact that all of them in the past have been supportive of this loan-guarantee program, [House Judiciary Chairman Lamar Smith] concluded, you know what; we can't compete against China when it comes to solar energy. I don't buy that,"

Solyndra shut down its Fremont factory, laying off 1,100 people, but the president maintained other loans to similar companies, are producing results, and creating jobs.

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