Schumer sees deal emerging on Ex-Im Bank

A battle over the Export-Import Bank that pits big business against Tea Party conservatives could be drawing to a close.

Sen. Charles Schumer (D-N.Y), who with Sen. Maria Cantwell (D-Wash.) is leading the charge to reauthorize the Export-Import Bank, said Tuesday that a deal on the bank could be emerging and Ex-Im critic Delta Airlines appears to be softening its demands that the bank be scaled back.

Ex-Im’s charter expires at the end of May and for the first time in years its reauthorization has proved problematic.
 
House conservatives, led by House Majority Leader Eric Cantor (R-Va.), have pushed to reduce its loan limit with the goal of phasing out the government lending institution, which backs foreign purchases of U.S. goods.
 
The battle pits Boeing, the bank’s biggest customer, against Delta, which argues the bank is giving foreign airlines an unfair advantage. Ex-Im does not back purchases by U.S. airlines like Delta, forcing it to seeks less advantageous rates.
 
“In recent days, Leader Cantor has appeared more eager to negotiate a solution with Democrats as a way out,” Schumer said. “Also, my office has recently been in touch with Delta, which has raised concerns with the bank’s renewal previously. At this point, my impression is they are scaling back their demands so that a resolution may not be far off.”
 
Schumer signaled that he is open to minor changes to the bipartisan Senate Ex-Im bill produced by the Banking Committee to appease Delta and Cantor. However, upping the loan limit from $100 billion to $140 billion is key, he said.
 
“Our bottom line is to extend the bank’s charter and grow its lending cap like we do in the Senate bill,” he said at a committee hearing.

Despite Schumer's remarks, Delta spokesman Trebor Banstette denied Delta has changed its position.

"Delta welcomes Sen. Schumer’s help on moving toward a resolution on much-needed reforms of the Export-Import Bank. Delta’s position on the Bank has not changed," he said.
 
He said the company will "continue to advocate for reform of the Bank, which should include greater transparency of the bank’s activities; an analysis of its impact on U.S. airline employees when it guarantees widebody aircraft loans for foreign carriers; and the establishment of a diplomatic path toward both U.S. and European export credit agencies ending the damaging practices of guaranteeing loans for international widebody aircraft sales, which has cost thousands of U.S. airline jobs.”

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