These concerns have not fallen on deaf ears, which is why Congress, while reauthorizing the Bank’s charter, mandated it conduct economic impact assessments with the goal of preventing any further damage from being imposed onto American companies. Over a year since the reauthorization was passed, the Bank has done almost nothing to reform its injurious practices. In fact, in the short time since the Bank’s reauthorization, it has already approved financing totaling more than $150 billion to three foreign airlines, further hurting U.S. based carriers.
Creating even more controversy was a loan recently given to Australian mining company, Roy Hill, which will aid in the purchasing of manufacturing equipment so that it can mine iron ore. Senator Klobuchar, Franken, Levin and Stabenow sent a scathing letter to Fred Hochberg, president of Ex-Im Bank, stating that the deal would “displace nearly $600 million of U.S. iron ore exports and would cause a reduction of approximately $1.2 billion in U.S. domestic sales, for a total loss to the U.S. iron ore industry of $1.8 billion.”
What is clear is that the Bank is subverting Congressional orders and failing to abide by its charter. It’s time Congress gets serious and demand the Ex-Im Bank rectify its negligent practices or face a complete Congressional overhaul.