Export-Import Bank: Corruption In Lending That Cost Taxpayers

Hot Air inteviews Rep. Jeb Hensarling (R-TX), chair of the House Financial Services Committee, :

Supporters of Ex-Im claim that the bank doesn’t actually cost taxpayers any money, but Hensarling disagrees. Ex-Im uses “funny Washington” accounting, not true-value GAAP accounting, which the CBO says would show that Ex-Im really does cost taxpayers. The real point, according to Hensarling, is that Ex-Im conducts political and ideological lending, not free-market lending. “Ultimately, this is about bureaucrats making decisions about credit allocations,” Hensarling said, “and not free people in a competitive marketplace. They do ideological lending,” Hensarling continued. “I mean, they’ve got a “green” quota. They have a no-coal policy. They have a sub-Sahara African lending mandate. … And then, there’s all the cronyism.” Since 98% of all exports are financed outside Ex-Im, the argument that closing Ex-Im will seriously damage the American economy isn’t serious, Hensarling argued.

The greedy rent-seekers will spin tall tales to promote their fraud.