Ex-Im Jeopardizes US Economy, Says Hensarling in Letter to Boeing, NAM Leaders

House Financial Services Chairman Jeb Hensarling, R-Texas, railed into corporate support for the Export-Import (Ex-Im) Bank in a recent letter to Boeing Chairman James McNerney and National Association of Manufacturing President Jay Timmons, saying “subsidies” provided by the credit agency represent a threat to the American economy and workforce. “It is undeniable that Ex-Im places credit risks on the taxpayers’ balance sheets that could instead be placed on your companies’ balance sheets,” said Hensarling. The credit agency largely provides financing for transactions that traditional lending institutions determine to be too high-risk. U.S. domestic competitors, such as Delta, of Ex-Im affiliated companies also suffer as a result of the lending, Hensarling said. Moreover, the argument that Ex-Im is necessary to compete with similar foreign credit agencies doesn’t hold water, he added. “The global marketplace remains an unlevel playing field in many areas -- especially the areas of corporate taxation, regulatory burden, and liability exposure,” said Hensarling. “American companies remain at a decisive competitive disadvantage in these areas.” Congress will likely have to take Ex-Im reauthorization legislation up following August recess, as the credit agency’s charter expires on Sept. 30 (see 14072539).