The Word / NASA. This image and this article expand on an earlier article published on Insurance Claims and Issues Blog on August 3, 2015.
The businesses opposing a vote on renewing the insurance guarantees and loan supports offered by the Export-Import Bank have donated well and selectively to key officeholders.
The current chair of a key committee will not allow the U.S. House of Representatives to vote to renew the Bank, which everyone understands is exactly how the Members will vote if they get the opportunity. See Jackie Calmes, "Lost Contracts and Jobs Intensify G.O.P. Discord on Ex-Im Bank" p. B1, col. 2 (New York Times Nat'l ed., "Business Day" Section, Wednesday, September 16, 2015). The businesses affected by the loss of the insurance and loans available from an Export-Import Bank are losing business, and laying off workers and reducing jobs, as a result. Id.
This is not about ideology, you know. It is about money. The main entities providing the funds to oppose renewal of the Ex-Im Bank, as it is known, are competitors of the businesses which benefit from the Bank's insurance and loan availability covering their enormous sales to foreign buyers.
Did you know that the Export-Import Bank was responsible for providing credit insurance to cover eligible business transactions? It is apparently called "sovereign insurance" in the context of international sales, reflecting that the government of the originating seller backs the sale to the international buyer. See Joe Nocera, "Republican Job Killers" p. A19, col. 1 (New York Times Nat'l ed., Saturday, September 19, 2015). Parenthetically, I learned quite a bit from Joe Nocera's column which is well worth the time to access the link provided here or to go online and read it in the newspaper's website.
So, no, the dispute over renewing the Export-Import Bank is not about ideology as is so often reported in the press. The dispute is about taking insurance and loan supports away from business competitors, supports that every government in the world provides to businesses located in its own country. The dispute over renewing the Export-Import Bank is about money and not ideology.
Otherwise the sworn representatives of the people of the United States would not be afraid to let the issue come up for a vote.
Please Read The Disclaimer. ©2015 by Dennis J. Wall, author of "Litigation and Prevention of Insurer Bad Faith," featured in this free podcast on Legal Current Podcast. All rights reserved.
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