Skip to comments.Republicans are about to kill a bank that's been around for 80 years — at least for a little while
Posted on 06/24/2015 7:50:39 AM PDT by SeekAndFind
Congressional Republicans are poised to deal a sharp blow to their traditional allies in the business community by allowing the federal Export-Import Bank to go out of business at the end of the month. But it may only be temporary.
The 81-year-old bank is a little-known federal agency created during the Depression that makes and guarantees loans to help overseas buyers purchase US products, from airplanes to bridges to baby clothes. Over the past year it's also become a surprising test of GOP purity, as tea party-backed lawmakers and outside conservative groups have denounced the bank as crony capitalism and vowed to get rid of it, pressuring fellow Republicans to go along.
"It is the purest form of corporate welfare, where you have a government agency that basically exists to subsidize Boeing airplanes and GE engines and Caterpillar tractors," said Dan Holler of Heritage Action for America, one of the conservative groups pushing congressional Republicans to stand against the bank.
Supporters at Chamber of Commerce and other business groups disagree, arguing that the agency helps many smaller companies and is necessary to keep US businesses competitive, especially because key foreign competitors like China have generous export credit agencies helping homegrown industries.
"The fact that all the major exporting countries have export credit agencies means American exporters would be competitively disadvantaged if the bank goes away," said Boeing spokesman Tim Neale. "The opposition has thrown a lot of stuff out there that's frankly pretty misleading."
The Export-Import Bank, which says it supported $27 billion in US exports last year, still counts supporters in both parties on Capitol Hill. But a number of high-profile Republicans, including Senate Majority Leader Mitch McConnell and House Majority Leader Kevin McCarthy , have abandoned past support for the bank under pressure from the party's conservative wing.
(Excerpt) Read more at businessinsider.com ...
It is the poster child for crony capitalism and corporate welfare in this country.
Kill corporate income tax too while you’re atit. That one gets passed down to the consumers.
But a number of high-profile Republicans, including Senate Majority Leader Mitch McConnell and House Majority Leader Kevin McCarthy , have abandoned past support for the bank under pressure from the party’s conservative wing.”
Yeah right. McConnell is holding out for a bigger check from corporate lobbyists. Then miraculously the bank will be back in business.
Oh, and Joe Tattoo Sixpack doesn't give a flying you-know-what.
“a little-known federal agency created during the Depression...”
That’s all I need to know to approve of axing it permanently.
actually it promotes the sale and payment for American products.
the actual cost is nil unless there is a problem with the borrower. much of the program is not loans but guarantees of loans to banks that will then accept foreign letters of credit as payment guarantee
for goods sold by American companies.
The ex im bank and OPIC are in reality a jobs program
It’s a subsidy for big crony business is what it is
Head of GE threatens US jobs if he doesnt get his pork - http://www.zerohedge.com/news/2015-06-23/former-obama-jobs-tzar-immelt-threatens-offshore-ge-jobs-if-ex-im-bank-bill-expires
Timmy intentionally misleads here, inferring that only solution is this government entity 'bank' from the Depression era. Bunk. If it is so important, a non-government bank will take its place.
It’s not a bank. It’s a fascist government agency.
OK, here the deal I would make:
I would end all forms of corporate welfare and subsidies and crony capitalism.
In exchange for this, I would offer to end the federal income tax on corporations.
I think it would all even out in the end and make more sense.
The USA has been financing the whole world since WWII. Look what its got us. 18 Trillion in debt while the infrastructure of Europe, China ,Japan and most of the Far East have modernized and ours has turned to rust. 18 Trillion, much of it pi$$ed away to support nations that hate us.
IF THAT WAS ALL IT DID THAT WOULD BE A WHOLE DIFFERENT STORY.
But it is crony capitalism, and the government should get out of it.
Why do we need to loan money to other countries to buy things? Do any of them bother to pay it back?
Yep, otherwise crony capitalism or not we are just shooting ourselves in the foot. I don't understand all those folks who have turned against free-market economics raging against ex-im. Ex-im just another mercantilist solution like tariffs.
Pork for corporations.
Note the far-Left “journalist” Erica Werner’s use of “kill” (death analogy, harsh) and they hope that if the Congress turns, it will come back when the Dems save it.
Pork for Fortune 500 corporations. Doesn’t do a damn thing for mom & pops.
Kill the Federal Reserve too! It’s been around 100 years, but so what?!!
NOTHING about this government can be called "free enterprise." The folks who want to shut down this FDR era agency are trying to turn this government back TOWARD free enterprise. I think you are confusing megacorporate "profits" gained by farming ordinary folks via the coercive power of government for as much $ as can be harvested which has NOTHING to do with "free enterprise."
Hopefully the abolition of the Ex-IM Bank will proceed as scheduled. I doubt it because the drunken Suntan Man will, in his capacity as the Tyrant of Capitol Hill, get out his US Chamber of Commerce/K Street/Wall Street kneepads and service all three simultaneously. The objects of his attention are relentlessly greedy pigs who, like Boehner, need to be firmly and finally punished. I should live so long as to see it.
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