Wall Street exec defends feds' loans, gives Obama $53K
WASHINGTON — A veteran Wall Street executive who performed an independent review that exonerated the Obama administration's program of loans to energy companies contributed $52,500 to re-elect President Obama in the months since completing his work, according to an Associated Press review of campaign records.
The executive defended the integrity of his conclusions and said he decided to donate to Obama after his work was done.
The campaign contributions to Obama started just weeks after Herbert M. Allison Jr., in congressional testimony in March, minimized concerns that the Energy Department was at high risk in more than $23 billion in federal loans awarded to green energy firms. Two weeks later, Allison began giving to the Obama campaign. His contributions to Obama and the Democratic National Committee totaled $52,500 by last month.
Allison previously was the former head of the government's mass purchase of toxic Wall Street assets.
Allison did not make any Obama donations during his four-month review of Energy Department loans, and he has a long history of working with and giving money to both political parties.
However, Republican Party officials and congressional critics of the energy loans said Allison's donations to Obama raise doubts about his objectivity and highlight his decision not to assess multimillion-dollar loans to two companies that later went into bankruptcy — the troubled Solyndra solar panel company and Beacon Power, an energy storage firm.
Allison's report, completed in February and touted by the White House, acknowledged that the Energy Department could lose as much as $3 billion in loans, but it concluded that was far less than the $10 billion set aside by Congress for high-risk companies. The review did not assess the two bankrupt firms because those loans were no longer current.
Allison told Congress that “DOE has negotiated protections in the loan agreements that enable it to cut off further funding and to demand more credit protection if projects do not meet targets.” He also urged the Energy Department to toughen its oversight.
Allison defended the integrity of his review. He said that he did not make the decision to back a presidential candidate until after he had finished his work and that his selection was approved by Energy Department lawyers before he began his review last October to “ensure there was no hint of bias or conflict of interest.”
“I was on the record with the White House that this had to be completely independent review and they agreed,” he said.