The Export-Import Bank of the United States would be dead officially now as charter approving its existence expires. The fiscal conservatives and activists would be very happy now as they have been successful in cutting down one more regulatory body. Many republicans often criticized the 81-year-old bank for being a free market distortion.
House Financial Services Committee Chairman Jeb Hensarling said that this is the way ahead to achieve more competitive free market economy. The idea of welfare state comes with deadly crony capitalism along with unnecessary regulation. Hensarling, a republican from Texas was at the forefront of ending the bank. Now the toughest job ahead of free market supporter is making sure that the bank stays expired.
The congress was adjourned for the July 4 recess and it failed to renew the concerned charter. The supporters of the Export Import bank have pledged to renew it by next month. The United States Government uses the least known bank as the export credit agency which works independently. U.S. Corporate giants like Caterpillar, General Electric and Boeing are dependent on Ex-IM. U.S. Goods for private business are also being financed by the bank.
Conservative legislators mocked the bank by calling it corporate welfare institution. They demanded winding down the current loan contracts of the bank and let the bank expire. If we look at the 2012 house vote regarding the same matter, the bank received supermajority support across the party lines and similar pattern is expected to be followed this year.