Is Ex-Im Bank Another Fannie Mae Or Freddie Mac?

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Investors Business Daily:

Politics: In an unusual display of election-year bipartisanship, Democrats and Republicans have joined to renew the charter of the Export-Import Bank. Political triumph? Hardly.

Ninety-three Republicans broke ranks with Speaker John Boehner, Majority Leader Eric Cantor and Majority Whip Kevin McCarthy to vote "no" on the renewal of the Ex-Im Bank. It still passed by a 330-93 vote, with 183 Democrats joining 147 Republicans on the "yes" side.

This is no shining example of bipartisanship, as it's now being hailed. The Ex-Im Bank could justifiably be called the "Political Crony Bank," because of its use as a piggy bank for politically favored companies.

Even so, not only did the House reauthorize the bank, but expanded its loan portfolio by 40% to $140 billion.

Haven't heard of the Ex-Im Bank? It's been around a long time. It began in 1934 as a way to help U.S. companies sell to the Soviet Union, where getting paid was often a dicey proposition. In recent years, it has mostly financed and guaranteed loans on U.S. exports.

Unfortunately, more recently, Ex-Im has become a political tool in President Obama's hands, used to reward and subsidize favored companies, industries and groups.

Starting in 2009, Obama ordered the Ex-Im Bank to favor green projects — and to give no money to any energy project that involves fossil fuels. Women and minorities also get loan preference. Is this "pro business"?

Obama has even more changes in mind for the Ex-Im bank — including letting it make loans to domestic firms that don't even do business overseas.