Freedom Caucus' Garrett To Head Up Export-Import Bank
Apr 16 2017
Like Garrett, a founding member of the House Freedom Caucus of conservative lawmakers, Trump opposed the Export-Import Bank during the campaign.
According to media reports, President Trump had met on February 23 with the CEOs of GE and Caterpillar, both heavily dependent upon exports, and two days ago, with Boeing former CEO Jim McNerney.
During his campaign, Trump criticized the credit agency as an unnecessary giveaway to politicians and certain companies.
Both nominations must still gain Senate approval.
Garrett voted in 2012 and in 2015 against renewing the charter of the Ex-Im Bank, which guarantees loans for companies that export US products.
In 2015, Trump called the bank's support "feather bedding", and said the benefits mainly went to "a few companies - and these are companies that can do very well without it". "When other countries give it, we lose a tremendous amount of business". Bachus was a supporter of the Ex-Im Bank while in Congress. After bipartisan support for a renewal of the bank's charter, conservatives then blocked nominees to the board. While the bank was revived, its five-member board has lacked a quorum, which restricted it from granting loans of more than $10 million.
Trump is also nominating another former lawmaker to the bank: Spencer BachusSpencer BachusTrump picks critic of Ex-Im Bank to lead it Spencer Bachus: True leadership The FDA should approve the first disease-modifying treatment for Duchenne Muscular Dystrophy MORE of Alabama, who once led the financial services panel.
The Ex-Im Bank is often maligned as the "Bank of Boeing", but about 90% of its 3,746 authorizations for guarantees, insurance and working capital in 2014 and $5.1 billion of its authorized funds went to USA small businesses.
In 2016, due to a lack of quorum on the Board of Directors, the Export-Import Bank was not able to provide full support for American jobs and the US exports that create them.
"Instinctively, you would say, 'Isn't that a ridiculous thing?"
The bank said it sends any surplus from the interest and fees it assesses back to the Treasury, resulting in a $5.6 billion profit for taxpayers since fiscal 2007. Trump said. "But actually, it's a very good thing".
Conservative groups including Club for Growth, Heritage Action and Americans for Prosperity have long opposed the bank, saying it promotes crony capitalism. The a year ago that the bank was fully operational was 2014, according to www.exim.gov.
Many moderate, business-minded Republican groups like the U.S. Chamber of Commerce support the bank.