ICYMI: Senator Toomey on the Export-Import Bank

[Click image to watch the speech in its entirety]

Washington, D.C.- U.S. Senator Pat Toomey (R-Pa.) made the following remarks at today's Banking Committee Export-Import Bank Nominations Hearing:

Excerpts:

• "It's long been no secret I am deeply skeptical of the mission of Ex-Im Bank. I know that I'm in the minority in the United States Senate with these views, however, I do share interesting company. President Obama once said, and I quote, "the Ex-Im bank is little more than a fund for corporate welfare." Bernie Sanders, with whom I occasionally disagree, has opposed the reauthorization."

• "I have concerns at several levels. I think this is a very dubious proposition for tax payers. Ex-Im proponents have often claimed that the Ex-Im bank only takes risks that private lenders are unable or unwilling to take, and yet at the same time proponents will argue that Ex-Im only makes safe bets. Well the fact is it's impossible to have both. The bank is either crowding out private sector lenders and guarantors, or it is taking on transactions that the private sector will not take on, at least not at the way it is priced. And that leads me to a fundamental concern that I have: which is Ex-Im wins business necessarily by systematically underpricing the risk, relative to the way the market views that risk. That's why businesses turn to Ex-Im. And it's not just me who has this view, in 2014 the CBO reported, using a fair value accounting, which is simply accounting for the risk, they expect Ex-Im to lose $2 billion for taxpayers over the next 10 years."

• "As we all know, inevitably, Ex-Im bank ends up picking winner and losers. It's a great deal if you're an exporter and Ex-Im subsidizes a foreign company that buys your product, that's great. But sometimes that results in an unfair advantage for some and not others. We heard, Congress has heard, testimony from Delta about a famous transaction in which Ex-Im subsidized aircraft for Air India which gave them a competitive advantage over Delta, which resulted in the loss of about 1,000 American jobs at Delta."

• "Let me say this about our nominees, all of whom I think are very, very good men and women, and capable individuals. Given that I know that I'm in the minority in this view, I am willing to support the confirmation of all these nominees, which would restore a quorum and allow the Ex-Im bank to function. However, I think that reforms to protect taxpayers are essential. And for that reason, I will support these nominees either en bloc, or I will support them sequentially, provided that Scott Garrett is confirmed first. And as long as that is the case, and Scott Garrett is confirmed by the United States Senate, then I will support, as I say reconstituting the quorum on the board. If not, then I will do everything I can to prevent Ex-Im from getting a quorum."