Boeing (BA) slid 1% today after Kevin McCarthy, the new no. 2 man for the Republicans in the House, said yesterday on the TV talk show circuit that he would not support renewing the charter of the Export-Import Bank.
The Depression-era program helps exporters by guaranteeing loans to buyers overseas and providing credit insurance, and has helped finance sales of Boeing Dreamliners to India, Poland and Ethiopia; GE has used the bank to sell trains to Pakistan, and Caterpillar (CAT) relies on the Ex-Im Bank to finance foreign buyers of its heavy equipment.
Delta Air Lines (DAL), however, opposes reauthorization of the bank and says taxpayers shouldn’t make it easier for foreign competitors to buy jets.
Eric Cantor, who recently lost his primary election and resigned his House leadership post, had supported Ex-Im and helped broker a deal to reauthorize the bank in 2012.