The Senate Banking Committee rejected Scott Garrett's nominationto be chairman of the U.S. Export-Import Bank, an institution theformer congressman earlier called “corporate welfare” and tried toshut down.

In the 10-13 vote Tuesday, Republican Sens. Mike Rounds of SouthDakota and Tim Scott of South Carolina joined all of thecommittee's Democrats in opposition. Rounds said Garrett's pastefforts to end the institution can't be overlooked at a time whenit needs a solid commitment to improvements.

“He's a principled man who simply believes in the abolishment ofthe bank,” Rounds said.

Marc Short, White House director of legislative affairs, said ina statement after the vote, “We are disappointed that the SenateBanking Committee missed this opportunity to get the Export-ImportBank fully functioning again. We will continue to work with thecommittee on a path forward.”

Committee Chairman Mike Crapo of Idaho had urged panel membersto recommend Senate confirmation, saying Garrett was“committed that Ex-Im will remain fully functional” and was“well-poised” to improve the agency. The committee recommendedconfirmation of five other Ex-Im nominees, and Crapo forwarded themto the Senate floor.

The committee's top Democrat, Senator Sherrod Brown of Ohio,said that if President Donald Trump “is serious about a functioningbank, he didn't show it by nominating Mr. Garrett.”

Trump's nomination of Garrett in April became one of thepresident's more controversial choices. Created during the GreatDepression, the Ex-Im Bank helps foreign companies buy U.S.products when private banks won't provide financing. Some of itsbiggest beneficiaries have been manufacturing and aerospacecompanies such as Boeing Co. and General Electric Co., as well asbig banks, like JPMorgan Chase & Co., that help financedeals.

Senate Minority Leader Chuck Schumer of New York said in astatement that Trump should “quickly nominate a chair that willactually fulfill the mission of the Ex-Im Bank.” He said the othernominees should be quickly confirmed.

During years of controversy over the export credit agency'sfuture, some Republicans including Garrett sought to close itsoperations completely. Congress reauthorized the bank in 2015, butsince then it has lacked the quorum it needs to provide loanguarantees of more than $10 million.

The five other Ex-Im nominations that moved forward are:Kimberly Reed to be the first vice president of the bank; formerGOP Representative Spencer Bachus, Judith Pryor, and Claudia Slacikto be board members; and Mark Greenblatt to be inspectorgeneral.

Contentious Hearing

Garrett had a contentious confirmation hearing before thebanking panel in November. He pledged to continue bank operationsif confirmed, citing new developments including Trump's electionand the introduction of a new agenda for the institution.Democratic senators including Elizabeth Warren of Massachusettsquestioned his avowed conversion from relentless critic seeking ashutdown of the bank to advocate of efforts to reauthorize it.

A House Republican member from New Jersey for 14 years until hisdefeat in 2016, Garrett was a founding member of the TeaParty-aligned Freedom Caucus and twice voted against legislationreauthorizing the bank. During one debate in 2015, he called it“taxpayer-funded welfare for mega-corporations” and said the bank“embodies the corruption of the free enterprise system.”

His negative view of the Ex-Im Bank is shared by at least twosenators on the banking panel, Pat Toomey of Pennsylvania andRichard Shelby of Alabama. On the other side are traditionalpro-business Republicans and the industries that support them.Rounds, Scott, and GOP panel member Thom Tillis of North Carolinahave major manufacturing presences in their states and havegenerally supported keeping the Ex-Im Bank in business.

Some congressional Republicans dismiss the bank as “cronycapitalism” because they say companies like Boeing and GE don'tneed government support.

In 2014, the bank's last fully operational year, it backed $27.5billion in exports and sent $674 million in profits to the U.S.Treasury.

Garrett's nomination was opposed by the U.S. Chamber of Commerceand the National Association of Manufacturers, both of which sentthe panel scathing letters about the former House lawmaker.

After the committee vote, NAM President Jay Timmons said in astatement that the bank “is too important for manufacturers and oureconomy to be led by someone who has consistently tried to destroyit.”

From: Bloomberg

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