On Capitol Hill, legislators continue to debate reauthorization of the Export-Import Bank. If Congress does nothing, one of the Federal Government’s most entrenched and obscure institutions will expire automatically on June 30th.
Here to explain is the Wolf of Wall Street.
A New Deal relic, President Franklin Roosevelt created the Ex-Im Bank in 1934 to bolster American exports.
Here’s how it works (in theory at least)–the Federal Government underwrites loans to foreign countries for the purchase of American products (or something like that).
Since its inception, Ex-Im has bankrolled billions in foreign loans…
…with your American tax dollars.
Conservative argue that Ex-Im allows big business to collude with big government.
They’ve dubbed the institution the “bank of Boeing,” and complain that Ex-Im has spent billions to benefit other Fortune 500 Companies like General Electric and Caterpillar.
They blame the bank for fostering crony capitalism and officials for promoting a culture of corruption…
…and they point to 31 ongoing investigations of fraud at Ex-Im.
But liberals maintain that the bank helps launch small businesses.
They’re not ready to let the bank expire. They’re gearing up for a fight.
Supporters, like the Chamber of Commerce and National Association of Manufacturers, continue to lobby Capitol Hill.
And Ex-Im has been in tight spots before. Conservatives tried to end the bank last summer when its charter was set to expire.
But the controversial institution survived when House leadership granted a temporary nine month extension.
And even against long odds this year, supporters are confident Ex-Im’s charter will be renewed again.
So let the cronyism continue!
