Public Money Used to Mitigate Risk While Privatizing Profits
Should the federal Export - Import Bank (Ex-Im)be reauthorized? Congressional Deadline: June 30th.
Today, we give hard oversight to the private banks processing Ex Im transactions. It's a very profitable, cozy deal for insiders.
Breaking News - For Immediate Release...
Banking Sector Micro Report | June 15, 2015
Federal Transfer Report - Export-Import Bank | May 30, 2015
The Crony Boondoggle for Ex-Im Insiders
By Adam Andrzejewski | Forbes Editorial
June 15, 2015
If you want the truth, follow the money.
Last week, we presented our research on the intersection between the federal Ex-Im Bank and the nation's largest private banks to staffers on the House Oversight Committee...
Large private banks processed more than $127 billion in Ex-Im supported transactions since 2007. So far, they've avoided intense scrutiny. They include Citibank, JPMorgan Chase, New York Mellon, Deutsche, Bank of America, and many others.
Here's how it works: Ex-Im mitigates all credit risk to private banks by guaranteeing payments from foreign importers. The big banks use this taxpayer guarantee to collect fees and profits with very limited downside.
Among our findings:
- The TOP 50 large bank partners with Ex-Im processed 70% of all activity ($120 billion on $172 billion) and 20 were foreign banks.
But, it's even more egregious:
In 1970, the federal governments Export - Import Bank (Ex-Im) "spun-off" a private bank empowered to trade on the guaranteed loan portfolio of Ex-Im. It's owned by Citibank, JPMorgan, Chase, Boeing, and GE - some of the largest beneficiaries of Ex-Im support.
How have some of the nation's largest banks and largest exporting corporations "gamed-the-system" to maximize profits on the Ex-Im Bank (taxpayer) guarantee?
Is this Ex-Im Bank debate about "supporting small businesses who 'fall through the gaps' of private-sector export financing?" Really?
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