Subcommittee Approves Bill To Promote American Jobs Through Exports
Jun 2, 2011 -
The International Monetary Policy and Trade Subcommittee, chaired by Rep. Gary G. Miller, today unanimously approved legislation to help U.S. companies create jobs by reauthorizing the Export–Import Bank for four years. The Securing American Jobs Through Exports Act supports the exporting of U.S. goods and services while instituting new transparency measures to protect taxpayer dollars. The Ex-Im Bank’s charter is currently set to expire on September 30, 2011.
Subcommittee Chairman Miller said, “I am pleased that we have come together to put American jobs before politics. This bipartisan bill focuses on domestic job creation, which is the key to our nation’s economic recovery. This bill ensures the Export-Import Bank continues to create U.S. jobs by supporting American companies as they compete to secure export opportunities around the world. The Ex-Im Bank’s support of U.S. companies is an example of how our government can facilitate job growth without contributing to the national debt. While we ask the Bank to expand its efforts, we want to be sure the taxpayer is duly protected and that the millions in surpluses that Ex-Im annually returns to the Treasury are continued. We have closely reviewed the Bank’s safety and soundness practices to ensure the Bank does not put the taxpayer at risk and this bill includes language to ensure that the Bank continues to exercise due diligence and keeps default rates low.”
Financial Services Committee Chairman Spencer Bachus said, “This legislation will help America create jobs, and that is precisely what Congress and the Obama Administration need to focus on. The Subcommittee’s bill also includes important safeguards that will increase transparency at the Ex-Im Bank and maximize taxpayer protection.”
In addition to reauthorizing the Ex-Im Bank for four years, the legislation would:
· Audit the Ex-Im Bank’s transactions to ensure Bank policies, guidelines and due diligence are performed. The audit would be performed by the U.S. Comptroller General.
Allow the Bank to invest in technology in order to improve servicing, underwriting, and accounting of transactions.
- Protect taxpayers by requiring the Bank to report to Congress if its default rate exceeds two percent, explain the reasons for a default rate increase, and propose a plan to reduce the default rate below two percent.
- Gradually increase the Ex-Im Bank’s exposure cap from $100 billion to $160 billion, which allows Congress to monitor the Bank’s management of increased exposure and to reduce risk.
- Direct the Ex-Im Bank to establish clear guidelines with respect to the content of goods and services for which the Bank will provide financing.