Examining Fraud, Waste, and Abuse at the Export-Import Bank

PURPOSE:

• To examine fraud, waste, and abuse at the Bank and the Inspector General’s efforts to address deficiencies with the Bank’s management and internal controls.
• To follow up on findings from the April 15^th and April 30^th hearings held jointly with the Financial Services Committee in advance of the expiration of the Bank’s charter on June 30^th.

 BACKGROUND:

• Established in 1934 as part of the New Deal to facilitate economic engagement with the Soviet Union and Cuba, the Ex-Im Bank became an independent agency in 1945.
• Financed $27.5 billion in exports in 2014, only 1 percent of total U.S. exports.
• The Bank cannot engage in new business without Congressional authorization. If authorization lapses, the Ex-Im Bank would be obligated to honor its existing loans and guarantees, but would be prohibited from entering into new business.
• The most recent re-authorization occurred in September 2014, and expires on June 30, 2015.