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Chairman Hensarling Issues Statement on Export-Import Bank’s Reauthorization Request

Washington, Apr 25 -

House Financial Services Committee Chairman Jeb Hensarling (R-TX) today released the following statement on the Export-Import Bank’s official request to Congress for a 5 year reauthorization and increase in its lending cap.
 
“I have always believed that re-authorizing the Export-Import Bank is a bad idea. In many respects, it’s the face of cronyism.  So I was surprised, but not shocked, to see the bank ask Congress to raise its lending cap by $20 billion, to $160 billion.  Only in Washington can a taxpayer-subsidized program whose only purpose is to pick winners and losers ‘fail upward’ by requesting more money. 
 
“Not only is Ex-Im requesting more room for its lending cap, but the Bank continues to ignore the already screaming alarm bells about the potential risk to taxpayers from its activities. The Bank’s Inspector General noted in a 2012 report that ‘Ex-Im Bank’s current risk management framework and governance structure are not commensurate with the size, scope, and strategic ambitions of the institution.’  It is inconceivable that the bank is seeking a sizable increase in taxpayer exposure at a time when its own Inspector General has raised serious concerns about its risk management capabilities.
 
“What may be most disturbing is that the Bank’s response to concerns of mismanagement and increased taxpayer risk isn’t to address those concerns – it’s to ask for even greater authority.  The committee will hold a hearing in the coming months to discuss this reauthorization request and give Members an opportunity to publicly debate the merits of the Bank.  It is time for Members and hard-working taxpayers to take a good look at the operations of the Export-Import Bank.”