John Podesta, senior adviser to the president for Clean Energy Innovation and Implementation, recently referenced an analysis by Credit Suisse concerning the American solar panel supply chain.
This move has raised eyebrows given the bank’s recent financial troubles, which culminated in its near-collapse earlier this year due to questionable investment decisions and corporate governance issues.
Podesta utilized Credit Suisse’s analysis to emphasize the Biden administration’s objective of bolstering a domestic solar panel supply chain and manufacturing capacity.
The senior adviser shared his remarks during a speech celebrating the one-year anniversary of the Inflation Reduction Act’s (IRA) passage. However, Podesta opened himself to criticism by citing Credit Suisse as his analysis source.
Credit Suisse has faced significant challenges this year, losing the trust of many clients and investors primarily because of substantial losses from poor investments. This situation led to widespread rumors of an imminent failure, causing a significant number of customers to panic, as reported by CNBC.
Fox Business reported that Podesta said in his speech: “Credit Suisse did an analysis that suggested that 90% of solar deployment in the U.S. will be supplied by solar manufactured in the United States.”
President Joe Biden enlisted Podesta in September 2022 to aid in the execution of the IRA. The administration’s landmark legislations have thus far allocated billions of taxpayer dollars to support the American solar panel industry and its supply chain, a sector predominantly controlled by China, as per NPR.
In a twist of events, UBS, another Swiss bank, took over Credit Suisse in a government-endorsed sale for $2 billion in March. This acquisition price, considered quite low, mirrored the market’s dwindling confidence in Credit Suisse’s operational competence and profitability.
To add to the bank’s woes, the Swiss central bank had to provide an emergency $54 billion to Credit Suisse before its sale to UBS to ensure its liquidity remained intact as its problems escalated in March.
Credit Suisse has also faced multiple investigations related to alleged fraud and regulatory noncompliance in recent years, as highlighted by Reuters. The bank is also accused of assisting some of its affluent clients in evading U.S. tax regulations, even after committing in a 2014 agreement with the Department of Justice not to repeat such actions, as noted by Politico.
It remains uncertain if Podesta was informed about Credit Suisse’s challenges when he referenced its analysis in his address.
The White House has yet to comment on the matter.
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