How the U.S. Ex-Im Bank Landed on Republicans’ Death Row

“A day before U.S. House Republicans were to vote on a new majority leader, lawmakers aligned with the limited-government Tea Party movement delivered a message to the leading candidate, Kevin McCarthy of California.”

 

 

Source: www.bloomberg.com

"The bank helps foreign companies buy U.S. goods by providing loans, guarantees and insurance. It was established in 1934 under President Franklin Delano Roosevelt and initially focused more on advancing U.S. foreign policy than aiding the economy. It financed the Pan American Highway, authorized $2 billion for European reconstruction under the Marshall Plan and approved $100 million in credits for Israel in 1948. The bank also issued $5.6 million in guarantees to post-Soviet nations.

"To its backers, the bank’s primary benefit these days is to protect manufacturing jobs and counter the advantages of competitors in other countries backed by their government subsidies, including Airbus Group NV (AIR) in France, and Mitsubishi Corp. (8058) in Tokyo. The bank says that its financing has created or maintained an average of 231,000 U.S. jobs every year since 2009, though a Government Accountability Office report last year said the calculation has limitations."

 

 

"At least five groups opposing the bank’s renewal, including Concerned Veterans for America and the 60 Plus Association, received nearly all of their funding over an 18-month period ending in December 2012 from the Kochs’ political network — a total of $47.4 million, according to an analysis by the Center for Responsive Politics researcher Robert Maguire. Another group, Americans for Prosperity, founded by the Kochs in 2004, is also lobbying against the bank.

 

"For the Tea Party, which has come up short in fights over higher-profile issues such as eliminating Obama’s health care law and ousting House Speaker Boehner, the bank presents the chance to chalk up a win going into the November elections.

 

“Its demise would clearly be one of the few achievable victories for the Main Street competitive economy left in this Congress,” Hensarling said in a May 20 speech at the Heritage Foundation."

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