Subscriber Special: Public Money Used to Mitigate Risk While Privatizing Profits Money46

June 16, 2015 10:41 AM

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...


Click here to read our Banking Sector report

Banking Sector Micro Report | June 15, 2015

Click here to read our full oversight report



Federal Transfer Report - Export-Import Bank | May 30, 2015



The Crony Boondoggle for Ex-Im Insiders

By Adam Andrzejewski | Forbes Editorial

Click here to read the Forbes editorial on Ex-Im

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 3 bank partners processed $1 in every $4 of Ex-Im transactions: JPMorgan Chase ($23 billion), Citibank ($9.4 billion), and Toronto - Dominion (TD) ($7.4 billion). 
  • 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?

Click here to read our Forbes editorial, The Crony Boondoggle for Ex-Im Insiders.




Matthew Tyrmand

Deputy Director

Adam Andrzejewski

Chairman & Executive Director 


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