Several Republican congressmen have written to U.S. Export-Import Bank President Fred Hochburg, asking some probing questions about the business plan the bank submitted to Congress last month. They rightly express concern about the bank’s operations and risk management. They also cite the nondiversified portfolio of the bank, with its high reliance on the aircraft sector (which has long been about half of the bank’s exposure) singled out for particular concern. The letter, in short, gives a good indication of where bodies are buried at Ex-Im.
Downsizing Government has added a new essay on ending the Export-Import Bank, which subsidizes the financing of U.S. exports. Author Sallie James argues that the Ex-Im Bank creates economic distortions and mainly benefits large corporations that can obtain their own private financing.
In a blog post I wrote about two years ago, I said “Usually when I hear that a policy proposal has bipartisan support, I instinctively check for my wallet.” At that time I was lauding a bipartisan proposal to shut the USDA’s market access program (although it seems that idea didn’t get much traction) under the heading “When Bipartisanship Is Good News.”