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Shelby Says Export-Import Bank Problems Beyond Repair

By Brandon Moseley
Alabama Political Reporter

Wednesday, June 10, 2015 US Senator Richard Shelby (R-Alabama), spoke on the Senate floor in opposition to the Export-Import Bank of the United States.  Sen. Shelby said, “I believe that Ex-Im has outlived its usefulness and should be allowed to expire.” The controversial bank is currently only authorized through June 30th of this year.

Senator Shelby said in his remarks to the Senate, “I rise today in opposition to a long-term reauthorization of the Export-Import Bank. In my opinion, and after evaluating this issue during a series of hearings in the Banking Committee, there is no compelling case to reauthorize the Bank. After years of efforts to reform the Ex-Im Bank, it has become clear to me that its problems are beyond repair and that the Bank’s expiration is in the best interest of American taxpayers.”

Sen. Shelby said, “Nearly 99 percent of all American exports are financed without the Ex-Im Bank, which demonstrates that the subsidies are more about corporate welfare than advancing our economy. I believe that Ex-Im has outlived its usefulness and should be allowed to expire.”

Alabama Governor Robert Bentley (R) disagrees with Senator Shelby on the Ex-Im Bank.  In April, Gov. Bentley said, “Job creation is my number one priority as Governor, and the Export-Import Bank of the United States is a crucial tool that both small and large businesses in Alabama use to export goods around the world.”

Governor Bentley said. “Failure to provide a long-term reauthorization of the Ex-Im Bank will place Alabama based businesses at a significant disadvantage in the global marketplace. I strongly encourage Congress to pass a long-term reauthorization.”

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The Export-Import Bank is charged with assisting in financing the export of American goods and services. The Ex-Im Bank provide loans, loan guarantees, or insurance to worthy businesses to promote exports and assist growth when they are unable to get that from commercial banks.

Diane Katz and Veronique de Rugyis wrote for the Heritage Foundation that: “Subsidized financing is an attractive perk to offer their customers. But those subsidies carry considerable costs—to taxpayers and the American businesses that are left to compete against foreign firms subsidized by the U.S. government. Given the vast resources of ex–Im’s beneficiaries and the abundant supply of private export financing, there is no need to lament the expiration of the bank charter. Given the unbridled expansion of government, eliminating Washington’s interference inthis corner of the economy is something to applaud.

Sen. Richard Shelby is the Chairman of the Senate Banking Committee

 

Brandon Moseley is a former reporter at the Alabama Political Reporter.

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