Putting the Ex-Im bank out to pasture

House Republicans are on the verge of finally ridding the country of a New Deal agency, the Export-Import Bank, known in some circles as the Boeing Bank. The bank’s reauthorization is opposed by conservative House Republicans led by Financial Services Chairman Jeb Hensarling of Texas and a considerable block of Tea Party Republicans. Majority Leader Kevin McCarthy and Shelley Moore Capito,  who had voted for reauthorization in the past said they wouldn't vote to extend Ex-Im’s charter this time. The Ex-Im is the very essence of crony capitalism. The government loans money to foreign governments to purchase American exports. Since the loans are almost always repaid except for when they're not there is no cost to the taxpayers. It's just like Fannie Mae and Freddie Mac-nothing to worry about. Should Ex-Im not win reauthorization, it could be taken over by the Department of Treasury. Although the bank would be able to manage existing loans, it could not issue new ones.
It's not the downside risk that conservatives dislike. It's the favoring the Washington insiders over all others. The Ex-Im has been picking winners and losers for 80 years and that's long enough. Those in favor of deep sixing the FDR anachronism are Citizens Against Government Waste, Heritage Action for America, the lobbying arm of The Heritage Foundation, and Americans for Prosperity. Supporters of the bank include Barack Hussein Obama, the U.S. Chamber of Commerce, and the National Association of Manufacturers.

Enter slime ball Sen. Chuck U. Schumer who thought it was outrageously funny when he crashed Indy Bank, a California concern, during the Bush years by publicly disclosing confidential information that the FDIC was concerned about its solvency. Sen Schumer has a plan to save the Ex-Im. He is confident that the reauthorization will pass the senate. Then he contends, there will be extreme pressure on House Republicans to follow suit just like the Gang of 8 immigration legislation. Awesome! 

With only 479 employees working in the Ex-Im euthanizing it would be little more than a symbolic win for the Tea Party-libertarian wing of the GOP but it would be a big first step. It may also serve as a warning to the president with a phone and pen that using his pet agencies to bypass Congress might mean doing without his pet agencies in the future.