Export-Import Bank in Jeopardy as Boehner Refuses to Back Charter Renewal

Tuesday, 24 Jun 2014 05:09 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

A push to save the United States' export credit agency struck a new hurdle on Tuesday when Congress's top Republican refused to throw his support behind the Export-Import Bank after news that bank staff were under investigation for graft.

The bank's charter must be renewed by Sept. 30 for it to continue operating but the allegations of fraud have added to long-running criticism of handouts to big business and meddling by the government in the private sector.

"We are going to continue to work with our members" on whether the bank's role should be taken over by the private sector, House Speaker John Boehner said, sidestepping a question about whether he personally backed reauthorization.

Supporters of Ex-Im in the pro-business wing of the Republican Party were already on the defensive after their No.2 in the House of Representatives, Kevin McCarthy, spoke out unexpectedly against the bank on Sunday.

Many tea party Republicans view the bank as an example of "crony capitalism." One of Ex-Im's most vocal critics is Jeb Hensarling, chairman of the House committee with oversight of the bank. But until McCarthy's statement, the business community thought there was a good chance of renewal because establishment Republicans, including leadership figures such as Boehner, had been supportive in the past.

Renewal of the bank's charter would require approval by both Democratic-led Senate and the Republican-dominated House.

Exports at companies such as Boeing, General Electric, and Caterpillar could take a big hit if Ex-Im's charter is not renewed — Boeing said such a decision could affect 1.5 million jobs. Medium- and large-sized companies accounted for 81 percent of $27.3 billion of loans and other authorizations last year.

Amid fierce lobbying by both sides, House Democrats said they plan to introduce a bill which would extend Ex-Im's charter until 2021 and lift its lending cap to $175 billion. 

During a closed-door meeting of House Democrats on Tuesday, Washington state Rep. Denny Heck urged fellow Democrats to sign up as co-sponsors of the bill, according to lawmakers at the meeting. Sen. Joe Manchin of West Virginia is working on a reauthorization bill in the Senate too.

Rep. Anna Eshoo of California expects close to 100 percent of Democrats will support renewing the bank's charter.

But the Democrats' status as the minority in the House will make it difficult, if not impossible, to advance the legislation to a floor vote without the help of Republican leaders.

Business groups, the U.S. Chamber of Commerce and the National Association of Manufacturers (NAM) are focusing their considerable lobbying powers on convincing leaders to allow a vote, given reauthorization passed by a wide margin in 2012.

"If this gets to the floor, I am very confident that it will get through the Congress," NAM President Jay Timmons said.

Senate Majority Leader Harry Reid said he intended for the chamber to take a vote on the bank before its charter expires Sept. 30, although he added that the onus for action was on House Republicans.

A Senate Democratic leadership aide said the threat to the bank in the House appeared "real and acute" and many senators were unlikely to want to vote before knowing what would happen in the other chamber.

Republicans with ties to big business have been reeling since former House majority leader Eric Cantor lost a primary to tea party insurgent Dave Brat on June 10.

Lobbying actions by the Chamber and NAM include 350 Hill meetings, one-on-one visits to every senator, hiring specialist lobbyists such as former chairman of the Republican National Committee Haley Barbour and former House Speaker Dick Gephardt, and visits to every Congressional district in every state.

They also organized a letter signed by 865 businesses and industry groups stressing the importance of Ex-Im and noting Ex-Im equivalents in countries such as Germany, Brazil and China provided as much as seven times the level of support to their exporters than Ex-Im provided to U.S. exporters.

The House Financial Services Committee will hold a hearing into the bank on Wednesday where Hensarling is expected to question Ex-Im Chairman Fred Hochberg over a Wall Street Journal report four officials had been suspended or removed as investigators look into charges of improper gifts and kickbacks.

The White House said Tuesday that the Ex-Im bank is working with its internal inspector general on an investigation into improper gifts and kickbacks. Spokesman Josh Earnest said President Barack Obama had "zero tolerance" for fraud, but supports reauthorizing the bank because it contributes to the economy.

Heritage Foundation analyst Diane Katz said a review of Ex-Im reports to Congress showed 74 cases since April 2009 in which bank officials were forced to act on the basis of misconduct investigations by the Office of Inspector General. Dozens of other fraud cases involving Ex-Im beneficiaries had been referred to the Department of Justice for prosecution.

"Fraud and corruption are among a long list of operational problems at the bank, which is a conduit for corporate welfare and beset by mismanagement, inefficiency and risk," she said.

Ex-Im Bank had no immediate comment on the accusations by Heritage.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Immigration Official: Agency 'Going to Be Ready' for Obama Orders

Tuesday, 21 Oct 2014 23:37 PM

The Obama administration is readying executive orders that would benefit as many as 11 million illegal immigrants in the . . .

Report: Leon Panetta's Memoir May Have Violated Secrecy Pact

Tuesday, 21 Oct 2014 23:22 PM

Former CIA director Leon Panetta clashed with the agency over his hard-hitting memoir "Worthy Fights," and let the publi . . .

Report: Opium Trade Booming in Afghanistan

Tuesday, 21 Oct 2014 23:07 PM

A new report claims Afghanistan's opium trade is booming despite more than $7 billion in American efforts to slow down t . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved