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28–519 PDF 2018

S. HRG. 115–144 

NOMINATIONS OF SCOTT GARRETT, KIMBERLY 

A. REED, SPENCER BACHUS III, JUDITH 

DELZOPPO PRYOR, CLAUDIA SLACIK, AND 

MARK GREENBLATT 

HEARING 

BEFORE THE

COMMITTEE ON 

BANKING, HOUSING, AND URBAN AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED FIFTEENTH CONGRESS 

FIRST SESSION 

ON 

NOMINATIONS OF: 

SCOTT GARRETT, OF NEW JERSEY, TO BE PRESIDENT OF THE EXPORT-IMPORT

BANK

KIMBERLY A. REED, OF WEST VIRGINIA, TO BE FIRST VICE PRESIDENT OF

THE EXPORT-IMPORT BANK

SPENCER BACHUS III, OF ALABAMA, TO BE A MEMBER OF THE BOARD OF

DIRECTORS OF THE EXPORT-IMPORT BANK; REAPPOINTMENT AS A MEMBER

OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK

JUDITH DELZOPPO PRYOR, OF OHIO, TO BE A MEMBER OF THE BOARD OF

DIRECTORS OF THE EXPORT-IMPORT BANK

CLAUDIA SLACIK, OF NEW YORK, TO BE A MEMBER OF THE BOARD OF

DIRECTORS OF THE EXPORT-IMPORT BANK; REAPPOINTMENT AS A MEMBER

OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK

MARK L. GREENBLATT, OF MARYLAND, TO BE INSPECTOR GENERAL OF THE

EXPORT-IMPORT BANK

NOVEMBER 1, 2017 

Printed for the use of the Committee on Banking, Housing, and Urban Affairs 

( 

Available at: http://www.govinfo.gov/ 

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS 

MIKE CRAPO, Idaho, Chairman 

RICHARD C. SHELBY, Alabama 

BOB CORKER, Tennessee 

PATRICK J. TOOMEY, Pennsylvania 

DEAN HELLER, Nevada 

TIM SCOTT, South Carolina 

BEN SASSE, Nebraska 

TOM COTTON, Arkansas 

MIKE ROUNDS, South Dakota 

DAVID PERDUE, Georgia 

THOM TILLIS, North Carolina 

JOHN KENNEDY, Louisiana 

SHERROD BROWN, Ohio 

JACK REED, Rhode Island 

ROBERT MENENDEZ, New Jersey 

JON TESTER, Montana 

MARK R. WARNER, Virginia 

ELIZABETH WARREN, Massachusetts 

HEIDI HEITKAMP, North Dakota 

JOE DONNELLY, Indiana 

BRIAN SCHATZ, Hawaii 

CHRIS VAN HOLLEN, Maryland 

CATHERINE CORTEZ MASTO, Nevada 

GREGG RICHARD, Staff Director 

MARK POWDEN, Democratic Staff Director 

ELAD ROISMAN, Chief Counsel 

MICHELLE MESACK, Senior Counsel 

ELISHA TUKU, Democratic Chief Counsel 

LAURA SWANSON, Democratic Deputy Staff Director 

HOMER CARLISLE, Democratic Professional Staff Member 

MEGAN CHENEY, Democratic Legislative Assisstant 

DAWN RATLIFF, Chief Clerk 

CAMERON RICKER, Deputy Clerk 

JAMES GUILIANO, Hearing Clerk 

SHELVIN SIMMONS, IT Director 

JIM CROWELL, Editor 

(II)

C O N T E N T S 

WEDNESDAY, NOVEMBER 1, 2017 

Page 

Opening statement of Chairman Crapo ................................................................. 1 

Opening statements, comments, or prepared statements of: 

Senator Brown .................................................................................................. 3 

NOMINEES 

Scott Garrett, of New Jersey, to be President of the Export-Import Bank ......... 4 

Prepared statement .......................................................................................... 38 

Biographical sketch of nominee ....................................................................... 40 

Responses to written questions of: 

Senator Brown ........................................................................................... 170 

Senator Rounds ......................................................................................... 178 

Senator Menendez ..................................................................................... 179 

Senator Warner ......................................................................................... 181 

Senator Heitkamp ..................................................................................... 183 

Senator Cortez Masto ................................................................................ 184 

Kimberly A. Reed, of West Virginia, to be First Vice President of the ExportImport Bank ......................................................................................................... 6 

Prepared statement .......................................................................................... 90 

Biographical sketch of nominee ....................................................................... 92 

Responses to written questions of: 

Senator Brown ........................................................................................... 185 

Senator Warner ......................................................................................... 187 

Spencer Bachus III, of Alabama, to be a Member of the Board of Directors 

of the Export-Import Bank; Reappointment as a Member of the Board 

of Directors of the Export-Import Bank ............................................................. 8 

Prepared statement .......................................................................................... 107 

Biographical sketch of nominee ....................................................................... 109 

Responses to written questions of: 

Senator Brown ........................................................................................... 188 

Senator Warner ......................................................................................... 190 

Judith Delzoppo Pryor, of Ohio, to be a Member of the Board of Directors 

of the Export-Import Bank .................................................................................. 9 

Prepared statement .......................................................................................... 133 

Biographical sketch of nominee ....................................................................... 135 

Responses to written questions of: 

Senator Brown ........................................................................................... 191 

Senator Warner ......................................................................................... 193 

Claudia Slacik, of New York, to be a Member of the Board of Directors 

of the Export-Import Bank; Reappointment as a Member of the Board 

of Directors of the Export-Import Bank ............................................................. 11 

Prepared statement .......................................................................................... 143 

Biographical sketch of nominee ....................................................................... 145 

Responses to written questions of: 

Senator Brown ........................................................................................... 194 

Senator Warner ......................................................................................... 196 

(III)

Page

IV 

Mark L. Greenblatt, of Maryland, to be Inspector General of the ExportImport Bank ......................................................................................................... 12 

Prepared statement .......................................................................................... 158 

Biographical sketch of nominee ....................................................................... 160 

Responses to written questions of: 

Senator Brown ........................................................................................... 197 

Senator Warner ......................................................................................... 199 

ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD

Letters in opposition to the nomination of Scott Garrett ..................................... 201 

Letter in support of the nomination of Kimberly A. Reed ................................... 213 

The Biggest Beneficiaries of the Ex-Im Bank ......................................................... 214 

Export-Import Bank: Propaganda Versus the Facts .............................................. 218 

Boeing Helped Craft Own Loan Rule; Celebrating Our Independence—From 

the Export-Import Bank ....................................................................................... 222 

Key Argument for Export-Import Bank Invalid ..................................................... 229 

(1) 

NOMINATIONS OF SCOTT GARRETT, KIMBERLY A. REED, SPENCER BACHUS III, JUDITH DELZOPPO PRYOR, CLAUDIA SLACIK, 

AND MARK L. GREENBLATT 

WEDNESDAY, NOVEMBER 1, 2017 

U.S. SENATE, COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, Washington, DC. 

The Committee met at 10 a.m., in room 508, Dirksen Senate Office Building, Hon. Mike Crapo, Chairman of the Committee, presiding. 

OPENING STATEMENT OF CHAIRMAN MIKE CRAPO 

Chairman CRAPO. The Committee will come to order, and if we 

could ask our nominees to please come forward. 

As our nominees are becoming seated, we will again follow the 

practice of Senator Brown and I making introductory remarks and 

then we will proceed to swear the witnesses and take your testimony, following which there will be questions and answers from 

the Senators. 

I will advise the Senators today that we have votes at noon, and 

so we are going to be pushing to get through this as a full hearing, 

and so I am going to be very tight on the time. I am going to remind you when you start going over, so please bear with me on 

that and try to stick to your time limits. 

Senator BROWN. There does not seem to be great enthusiasm. 

Chairman CRAPO. There does not. 

With that I’m going to go ahead and begin my comments while 

our witnesses are taking their seats. 

This morning we will consider six nominations for the Export-Import Bank, or Ex-Im. The Honorable Scott Garrett to be President 

of the Export-Import Bank; Ms. Kimberly Reed to be First Vice 

President of the Export-Import Bank; The Honorable Spencer 

Bachus III to be a Member of the Board of Directors of the ExportImport Bank; Ms. Judith Delzoppo Pryor to be a Member of the 

Board of Directors of the Export-Import Bank; Ms. Claudia Slacik 

to be a Member of the Board of Directors of the Export-Import 

Bank; and Mr. Mark Greenblatt to be Inspector General of the Export-Import Bank. 

Welcome to all of you and congratulations on your nominations. 

I see friends and family behind you and I welcome them here today 

as well. 

2 

President Trump has expressed his support for Ex-Im, noting it 

can help small businesses and U.S. competitiveness. Congressman 

Garrett has echoed this sentiment, assuring that if confirmed he 

will carry out the President’s vision with regard to Ex-Im. He is a 

long-time public servant who will bring transparency and efficiency 

to the Bank’s operations. Congressman Garrett has committed to 

pursue regular Ex-Im Board meetings, to transparently and thoroughly review the Bank’s transactions. He has also committed that 

under his leadership the Bank will remain fully functional, operating in a fair manner to support American jobs and provide maximum value to the U.S. taxpayer. 

We also have four other highly qualified nominees for the Board 

to consider today. Each has a wealth of relevant Government and 

private sector experience, including my good friend, former Representative Spencer Bachus. Spencer and I were elected to the 

House of Representatives in the same term and worked closely together in the House for a number of years. He is a pragmatic conservative and has demonstrated a long-time commitment to promoting economic opportunity. His experience and demeanor will be 

an asset to the Bank’s Board. 

Ms. Reed, who is nominated to serve as First Vice President, has 

been Senior Advisor to former Treasury Secretaries Paulson and 

Snow, and has served on several congressional committees, and has 

held impressive leadership positions in the private sector. 

Ms. Slacik is a seasoned finance professional with a breadth of 

trade, finance, commercial lending, and risk management experience, most recently serving as Chief Banking Officer and Senior 

Vice President of Export Finance at Ex-Im. 

Ms. Pryor has spent the majority of her career working with 

international businesses, most recently serving as the Vice President of External Affairs at the Overseas Private Investment Corporation. 

The Office of Inspector General, for which Mr. Greenblatt is nominated, is independent and plays an important role of promoting efficiency in Ex-Im programs and detecting fraud, waste, and abuse. 

Mr. Greenblatt has extensive senior-level experience in the inspector general and oversight community, including serving in two Cabinet-level Offices of Inspector General. He also has more than 5 

years conducting oversight in the U.S. Senate. 

Together, this diverse slate of nominees is well poised to move 

the Bank forward in a positive manner. I look forward to hearing 

each of the nominees’ ideas and goals for helping address opportunities and challenges facing the Bank, supporting small business 

exports, and protecting taxpayers by prudently managing the 

Bank’s portfolio. 

Congratulations on your nominations and thank you and your 

families for your willingness to serve. 

We have received several letters in support of today’s nominees 

and at this time I ask unanimous consent to enter those letters 

into the record. Without objection, so ordered. 

Senator Brown. 

3 

OPENING STATEMENT OF SENATOR SHERROD BROWN 

Senator BROWN. Thank you, Mr. Chairman. I ask unanimous 

consent that the testimony of House Democratic Whip Steny Hoyer 

in opposition to Mr. Garrett’s nomination be included in the record, 

and I also ask unanimous consent that the letters in opposition to 

Mr. Garrett from the Ohio Manufacturers’ Association, the National Association of Manufacturers, the Aerospace Industries Association, and the U.S. Chamber of Commerce be included in the 

record. 

Chairman CRAPO. Without objection. 

Senator BROWN. Thank you, Mr. Chairman. 

Today we hear from the six nominees whom President Trump 

has put forward to lead the Export-Import Bank. I applaud the 

President for now seeming to recognize the need to have a fully 

functioning Ex-Im Bank so the United States does not continue to 

lose jobs and contracts to foreign competitors. The House and Senate voted overwhelmingly, 2 years ago, to reauthorize the Bank, 

but since that vote Congress has starved the Bank of the nominees 

it needs to function. For nearly 2 years, Ex-Im has been unable to 

assist medium- and long-term transactions larger than $10 million. 

As a result, we know that lots of American jobs have been lost. 

The Bank has been forced to sit on more than $30 billion worth 

of transactions that cannot close until a quorum in the Bank is restored. If these deals fail, and some will because of delay, the 

blames lies squarely with the opponents here in Congress and the 

opponents within the Administration. 

Meanwhile, the doors of foreign export credit agencies are wide 

open for business. France, Germany, and Italy each provided some 

$9 billion of medium- and long-term export credit last year. China 

provides more credit every 2 years than Ex-Im has over its entire 

80-year history. 

In the face of that foreign competition, Mr. Garrett has called for 

unilateral disarmament. During his time in Congress he was a 

leader of the effort to slam shut the doors of America’s export financing bank. Opponents of the Bank, like Mr. Garrett, have ignored basic facts, manufactured false allegations, and disregarded 

common sense to justify their position. Confirming Mr. Garrett as 

President of Ex-Im would be like putting an arsonist in charge of 

the Fire Department. 

The opposition to Mr. Garrett’s nomination is overwhelming. The 

National Association of Manufacturers, the Chamber of Commerce, 

the Aerospace Industries Association all oppose Mr. Garrett. State 

manufacturing organizations like mine in Ohio, and I know the 

Chamber of Commerce in South Carolina, and small business men 

and women from across the country have also registered their opposition. 

Mr. Garrett may argue this morning that he has had a change 

of heart about the Bank, but you cannot really change who you are. 

Time and again, Mr. Garrett has shown he lacks the temperament 

to run an agency. He clearly would not treat all Americans as 

equals. He has even complained that other ethnicities will ‘‘say yes 

to you constantly and then you will realize they don’t really mean 

it.’’ 

4 

Now, to be fair, Mr. Garrett said he did not mean ethnicities but 

people in other countries. This is the man who might lead the Export-Import Bank. 

The Ex-Im Bank needs a president who will stand up for American jobs. The Bank needs a leader who believes in the mission, 

who will be respectful of other opinions, and yes, be respectful of 

people who are different from him. That person is not Scott Garrett. 

Thank you, Mr. Chairman. 

Chairman CRAPO. Thank you, Senator Brown. We will now administer the oath. Would all of the witnesses please stand and 

raise your right hand. 

Do you swear or affirm that the testimony you are about to give 

is the truth, the whole truth, and nothing but the truth, so help 

you God? 

Mr. GARRETT. I do. 

Ms. REED. I do. 

Mr. BACHUS. I do. 

Ms. PRYOR. I do. 

Ms. SLACIK. I do. 

Mr. GREENBLATT. I do. 

Chairman CRAPO. And do you agree to appear and testify before 

any duly constituted Committee of the Senate? 

Mr. GARRETT. I do. 

Ms. REED. I do. 

Mr. BACHUS. I do. 

Ms. PRYOR. I do. 

Ms. SLACIK. I do. 

Mr. GREENBLATT. I do. 

Chairman CRAPO. Thank you. You may be seated. 

Your written statements will be made a part of the record in 

their entirety. As you have each been told, we allocate 5 minutes 

to you for an oral statement. I remind you as well as my colleagues 

to honor the 5-minute clock. I will rap the gavel to remind people 

who forget to watch the clock. 

And with that, let us proceed. Mr. Garrett, you may proceed first. 

STATEMENT OF SCOTT GARRETT, OF NEW JERSEY, TO BE 

PRESIDENT OF THE EXPORT-IMPORT BANK 

Mr. GARRETT. Good morning, Chairman Crapo, Ranking Member 

Brown, and all the Members of the Committee. 

I would like to begin by thanking the Members of the Committee 

for, first of all, the opportunity to be with you here today, and also 

to thank each and every one of you who has taken of your time of 

what I know is very busy schedules that you have, to meet with 

sometimes once and sometimes twice, to discuss the matters, to 

hear your insights, to hear your thoughts, and to listen to your advice as well. 

Mr. Chairman, I would like to begin by thanking the President 

of the United States for the honor that I have received to be nominated as the head of the Export-Import Bank. I am truly and deeply humbled by that nomination. 

Next I would like to take a moment, if I may, to introduce my 

family and to thank them as well; those that could be with us 

5 

today and those who, for various reasons, could not be with us 

today. You know, it is said that children are a gift from the Lord, 

and that is truly a true statement. And, I have been very blessed. 

I have been blessed with two daughters, and starting with my 

youngest, Brittany, who is behind me, and is able to take time out 

of her work schedule to be with us today. I am delighted that she 

is here today and I am very proud of my youngest daughter, Brittany. 

My oldest daughter is Jennifer, and her new husband, my new 

son-in-law. She is a teacher and he is studying for his Ph.D. as we 

speak. And, so neither one of them are able to be with us today. 

I am obviously very, very proud of my daughter, Jen, and Carlos, 

her new husband, as well. 

And that brings us, of course, to my wife, right behind me, Mary 

Ellen. It is said ‘‘an excellent wife, who can find? She is more precious than jewels,’’ and that is absolutely true in the case of my 

love and my partner for over 33 years, this past August, together 

as my partner. Through all the years that we went through, the 

14-some-odd years as members of Congress, and actually all the 

months as well, going through this nomination process. She is my 

love and she is my partner, and I am glad that she is able to be 

with us here today as well. 

As I said, I am honored to be before this Committee and as a 

nominee to lead the Export-Import Bank. Let me begin on this 

point and be absolutely crystal clear. If I am so honored to be the 

nominee and then confirmed to head Export-Import Bank, rest assured that I am committed to keep the Bank fully open and fully 

operational. Period. It will continue to operate. It will continue to 

receive and review and pass loans that will help manufacturing in 

this country and help manufacturing in this space as well. Period. 

I know that some of you, as I look around this Committee, are 

fully supportive of the Export-Import Bank’s mission. And, I know 

a number of you represent constituencies and businesses that are 

directly impacted by the availability of financing from the Bank. So 

let me be clear again, and leave no doubt in anyone’s mind on this 

point: I will carry out the President mission and I will see to it that 

the Bank is fully operating. 

Why do I do that? Because I fully support the President’s progrowth agenda. He has laid out an agenda to create jobs and to expand the American economy and to make this country more prosperous. And I completely agree that robust U.S. exports are critical 

to the vitality of the manufacturing sector. Furthermore, it is my 

belief that a robust manufacturing sector is essential to a strong 

and vibrant economy. 

See, strong manufacturing, in essence, goes hand-in-hand, if you 

will, with the President’s agenda of increasing manufacturing and 

better jobs in this country. Furthermore, it is absolutely essential— 

it is vital, if you will—that U.S. companies have that proverbial 

level playing field to compete in the world market today. 

As a former Chairman of the House Financial Services Committee and Capital Markets Subcommittee, I understand that finance and the importance of capital markets in the creation of 

these jobs. 

6 

So it will be my goal that, if I am confirmed, to fully and strongly 

advance this agenda and ensure that the Ex-Im Bank operates as 

intended by law, as established by each of you here. 

Let me end by repeating this—let me repeat: the Ex-Im Bank 

will operate as intended by law, as established by legislature, by 

you, the Members of this Committee. It will do so in an open and 

honest and transparent manner, and that is something that I am 

committed to doing. 

Finally, let me close on this point. Having served in Congress for 

14 years, and having been on the other side, if you will, I do very 

much appreciate the constitutional responsibilities of the legislative 

branch, and so if confirmed, I look forward to having a continuous, 

open, and transparent dialog and discussion with Congress and 

with this Committee, specifically, and each one of you specifically. 

In short, I am committed to working with you to promote the creation of American jobs, to provide the maximum value for American taxpayers, and ensure that Ex-Im operates fully. 

So I am honored again, Mr. Chairman, to be here today, and I 

do look forward to your questions that follow. Thank you. 

I yield back. 

Chairman CRAPO. Thank you, Mr. Garrett, and we will just go 

down the line. Ms. Reed. 

STATEMENT OF KIMBERLY A. REED, OF WEST VIRGINIA, TO BE 

FIRST VICE PRESIDENT OF THE EXPORT-IMPORT BANK 

Ms. REED. Good morning. Chairman Crapo, Ranking Member 

Brown, and Members of the Committee, thank you for the opportunity to appear before you today. I am honored to be the President’s nominee to serve as First Vice President of the Export-Import Bank of the United States, a position that includes being Vice 

Chairman of the Bank’s Board of Directors. As a West Virginian, 

I am grateful to Senators Shelley Moore Capito and Joe Manchin 

for their support. 

I am pleased to introduce my father, Terry, and sister, Meghan. 

My father taught me the importance of public service and helping 

others. My mother, Janet Logue Reed, an Ohioan, passed when I 

was 9 years old, but I know that she is with us. My brother, Mark, 

sister, Ashley, and brother-in-law, Jeremy, a Purple Heart recipient, are watching online. 

My interest in public service was sparked when I was 4 years old 

and my father was a counsel to the then-newly founded Republican 

Study Committee. This is when I first met former House Ways and 

Means Chairman Bill Archer and his chief of staff, Don Carlson. 

They have supported me my whole life. I am deeply honored that 

Don is with us today and I am told that Chairman Archer is en 

route, and I know that we all will welcome him when he joins us. 

When it comes to helping others, I serve on the Alzheimer’s Association National Board of Directors. This disease impacts 5 million 

Americans and 15 million unpaid caregivers, and my thanks go to 

you and Members of Congress, as well as advocates watching online today, who take action to end our Nation’s most expensive disease. 

I appreciated the opportunity to meet with many of you to discuss your hopes for the Bank. Creating good American jobs is a top 

7 

priority for the President, as I am sure it is for all of you. If confirmed, I will deliver on this priority. We are on the cusp of an 

American renaissance in manufacturing, including for small and 

new entry companies. 

I am committed to serving our Nation, and if confirmed, look forward to bringing two decades of bipartisan experience to my work 

at the Bank, which has more than 400 dedicated career professionals. Throughout my career, I have engaged not only with CEOs 

and world leaders but also with thousands of constituents and 

small businesses in your States. 

As Director of the Treasury Department’s Community Development Financial Institutions Fund under President George W. Bush, 

I made job creation in distressed communities a key priority. I 

oversaw efforts to provide $4 billion in financing, in the forms of 

New Markets Tax Credits, loans, and grants, to financial institutions and economic development groups that were investing in our 

Nation’s rural, Native American, and urban communities. 

As counsel to three congressional committees, I focused on oversight and reform to improve our Federal agencies. I deeply appreciate the valuable role Congress plays in oversight of Federal programs, including the Bank, and the importance of faithfully executing all our laws consistent with the intent of Congress. 

As Senior Advisor to U.S. Treasury Secretaries John Snow and 

Henry Paulson, I helped advance our Nation’s economic program. 

I know the value of working as part of an Administration’s team 

in making sure Congress and the American people are fully informed about the President’s agenda. 

Most recently, as President of the International Food Information 

Council Foundation, I worked with the U.S. Departments of Agriculture and State in numerous emerging market countries around 

the world to increase acceptance of U.S. exports. 

The Bank has become an important source of funding for small 

businesses and an avenue for job creation. Nonetheless, there are 

needed reforms to ensure that taxpayer dollars are protected from 

waste and fraud and that Americans are obtaining the best value. 

With respect to the activities of the Bank, my friend, Chairman 

Archer, taught me that any reform must not occur at the expense 

of our national interests. He warned against unilateral disarmament in a fiercely competitive global economy. I share his concerns and would never advocate to place American exporters and 

workers in a worse position than our foreign counterparts. There 

are now 95 foreign export credit agencies, including 11 acknowledged in the past year, many of which are used by foreign Governments attempting to move U.S. jobs and business revenue to their 

countries. 

In West Virginia, my grandfather taught me the importance of 

having the necessary tools in life. As an eighth-grader during the 

Great Depression, he launched Reed’s Dairy. When private sector 

financing was not available, the Federal Land Bank filled the gap 

and my grandfather farmed for the rest of his life. He was meticulous with his toolbox. The United States must have the right tools, 

including a fully functioning Export-Import Bank, in our toolbox to 

be successful in the global marketplace. 

8 

But those tools need to be constantly repaired and reformed. I 

am especially interested in making sure that small- and mediumenterprises, just the kind of businesses I am so familiar with in 

West Virginia, have full access to the programs authorized by Congress. 

If confirmed, I will bring a fresh set of eyes to the Bank to 

strengthen U.S. competitiveness and bring better value to the 

American taxpayer, as the opportunity for Americans to create an 

export has never been brighter. 

Thank you for your consideration. I would be pleased to answer 

any questions. 

Chairman CRAPO. Thank you. Mr. Bachus. 

STATEMENT OF SPENCER BACHUS III, OF ALABAMA, TO BE A 

MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORTIMPORT BANK; REAPPOINTMENT AS A MEMBER OF THE 

BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK 

Mr. BACHUS. Chairman Crapo, Ranking Member Brown, and distinguished Members of the Committee, I appreciate you considering 

my nomination today. I also welcome the fact that you granted me 

the opportunity to hear your concerns about the Bank; some are in 

favor of the Bank, some have concerns about the Bank. 

It was an honor to be selected by President Trump. But it is even 

more of an honor—and I welcome the opportunity to work for 

American workers—to preserve jobs and to create jobs, and as we 

all know, those jobs are under a threat. They used to say that the 

American dream was home ownership, but you cannot have a home 

without a job, a good-paying job. 

I am very pleased today to have my wife and best friend, Linda, 

join me. She is representing my five children and our seven grandchildren, some of whom probably would not even want to be here 

anyway. 

[Laughter.] 

Mr. BACHUS. During my entire public service, she has been at my 

side, encouraging me along the way, and she has made me a better 

person. 

There is a familiar phrase from the 1967 movie, ‘‘Cool Hand 

Luke’’, which takes place in the South. It says, ‘‘What we have got 

here is failure to communicate,’’ and I think that is the story of ExIm Bank. There is hostility among certain members of the Senate, 

and the House, including myself when I was in the House, about 

their failure to communicate. When problems would come up they 

would simply ignore some of our concerns. 

And I see my major role at the Bank and if the Board would 

allow you to sort of take whatever little latitude in what your mission will be. My mission will be to try to create communication between the members of the Board of Ex-Im Bank and the members 

of the legislative branch. As Mr. Garrett said, I have a great respect for the legislative branch, and I do not believe that agencies 

ought to just ignore their concerns. 

If you will recall, in the movie, Cool Hand Luke, the only victim 

in the movie was Paul Newman. Since he was a fictitious character, there really wasn’t a lot of damage when the day was over. 

But I am very concerned that this lack of communication between 

9 

the Senate, the House, and the agency, and those that are detractors of Ex-Im, that it threatens the very existence of the Bank. 

I am an unapologetic supporter of the Bank and its mission. You 

can argue about some of the numbers, but there are hundreds of 

thousands of American workers who depend on the Bank. Not only 

that but 95 percent of the market is outside the United States. I 

see my good friend, Tim Scott. When it comes to aviation, we dominate that market. But if you look at a recent Wall Street Journal 

report, China, Russia, both have plans, heavily subsidized plans, by 

the way, to take over that market. And we can scoff at that, but 

the Chinese think in 10 years they will become a dominant player 

in that market. 

And let me remind you of this, as aviation seems to sort of be 

something that we all talk about, there are more aviation workers 

in the United States than there are automobile workers. That 

comes as a surprise to me. Every State in the union depends on 

them. When you write a check to an aviation company, you’re writing a check to 23,000 small businesses and large businesses working with those companies. 

Let me close by saying this. Ex-Im financed the Burma Road. It 

financed the Marshall Plan. And, Congress designated it as the 

agency to rebuild Iraq, with 100 percent of American goods. They 

have not been able to fulfill that obligation because the Bank has 

basically been shut down. 

But going back, American workers can compete with any workers 

in the world. They can produce the best product at the best price. 

But they have to do so on a level playing field. 

Thank you. 

Chairman CRAPO. Thank you. Ms. Pryor. 

STATEMENT OF JUDITH DELZOPPO PRYOR, OF OHIO, TO BE A 

MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORTIMPORT BANK 

Ms. PRYOR. Thank you, Mr. Chairman, Ranking Member Brown, 

distinguished Members of the Committee. I am honored to appear 

before you today as a nominee for the Board of Directors of the Export-Import Bank of the United States. I am deeply grateful to 

President Trump for nominating me, and to Senator Schumer for 

his recommendation and support. 

If confirmed, I pledge to carry out Ex-Im’s mission with honor 

and integrity, and I would also like to thank Ranking Member 

Brown, Senator Heitkamp, and their staff for their support and encouragement. And thank you to all of the Members of the Banking 

Committee for your commitment to move this process forward. I 

have met with many of you to discuss your priorities and how we 

can ensure that Ex-Im continues to support American jobs, in your 

communities and throughout the country, by increasing our exports 

of goods and services. 

Last, I would like to introduce some family members here with 

me today. My husband, David Pryor, Jr.; our son, Hampton, whom 

you’ve been listening to through these opening remarks; and my 

brother-in-law, Mark Pryor. My parents have been gone a while 

but today would have been my mother’s 90th birthday, so happy 

birthday, Mom. My brother, Joseph DelZoppo, and my niece, ChrisVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00013 Fmt 6633 Sfmt 6633 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
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tine, could not be here but I am grateful to them for their support 

and love. 

From the American dream of my grandparents, who immigrated 

here at the turn of the last century to work in the Cleveland factories, to the boom of the post-World War II years that my parents 

enjoyed, to my youth and the unfortunate decline of manufacturing 

in what many call the Rust Belt—but let us call it what it really 

is, the industrial heartland of America, and clearly the need for ExIm in Cleveland and throughout the country is even more relevant 

today. 

If confirmed, my top priority will be to focus on Ex-Im’s mission 

of supporting American job and growing exports, while protecting 

taxpayer dollars. With over 95 percent of the world’s consumers living outside of U.S. borders, there are so many opportunities for 

U.S. manufacturers to grow their customer base abroad. Indeed, I 

look forward to contributing to that growth by increasing support 

for small businesses and community banks, and by ensuring that 

businesses of all sizes can compete fairly. 

With nearly 100 other export credit agencies in the world today, 

getting our Export-Import Bank fully up and running is imperative 

to helping American manufacturers. 

I would bring to Ex-Im a unique set of work-life experiences. My 

decades of private sector work, in corporate affairs, marketing and 

sales, branding and business development have made me a trusted 

tonesetter and caretaker of an organization’s public reputation. My 

61⁄2 years of Government service at the Overseas Private Investment Corporation, OPIC, engrained in me a sense of duty to ensure 

taxpayer dollars are protected and Government programs are managed with integrity and efficiency. 

I spent most of my career working for American businesses with 

an international presence, often in emerging markets. Whether a 

Fortune 500 or a small business, I was fortunate to have staff incountry to help me navigate the landscape. I remember how 

daunting it seemed—different customs, languages, regulations—yet 

this is the reality for many U.S. small businesses wishing to export 

into foreign markets. I recognize how difficult it can be to figure 

out how to get their product from Point A to Point B. 

I proudly served during the Obama administration as OPIC’s 

Vice President for External Affairs and as a member of its leadership team. I held a seat on the Investment Committee, weighing 

in on all project commitments over $20 million, and I was responsible for the agency’s relationship with Congress, the media, and 

the small business community, doubling the number of workshops 

held around the country, with nearly 4,000 U.S. small businesses 

educated to date. Conversations with these small businesses made 

me realize they truly are the engine of our economic growth. 

If confirmed, I believe my experience, paired with updates to the 

2015 charter, as enacted by Congress, will help to modernize the 

Bank and keep its mission relevant in today’s changing times. 

Ex-Im has an 80-year track record supporting U.S. jobs and 

growing exports. It takes the fear out of exporting for smaller companies and ensures a level playing field so all American manufacturers can compete fairly. 

11 

I look forward to working with my fellow Board members, the 

nominee for Inspector General, and the entirety of Ex-Im management and staff, with one objective in mind—to support and sustain 

American jobs through exports. 

Chairman Crapo, Ranking Member Brown, Members of the Committee, thank you again for this opportunity to appear before you 

today as I respectfully ask for your support to serve on the Board 

of Directors of the Export-Import Bank of the United States. 

Thank you, and I am happy to answer any questions. 

Chairman CRAPO. Thank you. Ms. Slacik. 

STATEMENT OF CLAUDIA SLACIK, OF NEW YORK, TO BE A 

MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORTIMPORT BANK; REAPPOINTMENT AS A MEMBER OF THE 

BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK 

Ms. SLACIK. Thank you, Chairman Crapo, Ranking Member 

Brown, and distinguished Members of the Committee. It is an 

honor to appear before you today. I am grateful to be nominated 

by the President to be a member of the Board, and if confirmed I 

will be honored to serve. 

Let me start by thanking the Members of the Committee I’ve met 

work and for—I appreciated all your concerns about the Bank—and 

for those of whom I did not meet, I look forward to meeting with 

you and hearing your concerns about the Bank as well. 

Before presenting my own background, let me first introduce you 

to the members of my family who are here today. First, my spouse, 

Susan Davis, who was born and raised in Louisiana, and who has 

spent most of her professional life in the service of impoverished 

people in the neediest parts of the world. And second, my brother, 

Kurt Slacik, who was born in New York State, and who is now a 

senior executive at a steel mill in Pennsylvania. 

As for myself, I was born in upstate New York and grew up 

there, as well as in New Jersey, Illinois, Connecticut, California, 

and Massachusetts. I also spent 5 years in Brussels, Belgium, 

where my father was a senior executive for a major U.S. company. 

I am the product of both public and parochial schools, and Susan 

and I are members of the Middle Collegiate Church in Manhattan, 

which was founded in 1628 by the Dutch seeking a religious freedom, and we were married there 5 years ago. 

While my parents are both deceased, I have four siblings and five 

smart and beautiful nieces. My paternal grandparents immigrated 

to the United States from Czechoslovakia just before the First 

World War, and set up a small meatpacking business in upstate 

New York. My maternal grandfather was a coal miner in Scranton, 

Pennsylvania. 

Susan and I live in New York City, a magnificent city that was 

once again wounded yesterday. 

I have spent the last 35 years in the financial services industry, 

most recently as a commercial lender in corporations and as an 

international trade specialist. My most recent professional position 

was as the Chief Banking Officer at the Export-Import Bank, from 

2013 to 2016. I learned firsthand from the 400 excellent and diligent staff at Ex-Im of the importance of the Bank to American exporters and the workers they employ. 

12 

By leveling the playing field for large businesses and assuming 

the risk for small businesses, Ex-Im enables American businesses 

to successfully compete on the global stage, where foreign Governments do the same for their national companies. The bank thereby 

accomplishes its ultimate mission of helping our businesses grow 

and supporting jobs, jobs that pay nearly 20 percent more than 

other jobs of comparable nature involving products and services 

consumed here at home. 

During my tenure as Chief Banking Officer, the staff and I analyzed billions of dollars of transactions. My responsibilities included 

expanding the public’s awareness of the Bank and overseeing the 

due diligence. I ensured that the Board, which has the ultimate authority to approve transactions larger than $10 million, understood 

the structures and risks. My close working relationship with the 

Board allowed me to also gain a key insight into their responsibilities. 

If confirmed as a member of the Board of Directors, I pledge to 

vigorously carry out the mission of the Bank. I further pledge to 

diligently work with all Members of the Committee to address their 

concerns and keep them informed of the Bank’s activities. 

Mr. Chairman, Senator Brown, and Members of the Committee, 

thank you for your time and consideration. I look forward to answering any questions, and helping to provide jobs for my fellow 

citizens. 

Chairman CRAPO. Thank you. Mr. Greenblatt. 

STATEMENT OF MARK L. GREENBLATT, OF MARYLAND, TO BE 

INSPECTOR GENERAL OF THE EXPORT-IMPORT BANK 

Mr. GREENBLATT. Thank you, Chairman Crapo, Senator Brown, 

Members of the Committee, it is an honor to appear before you 

today as the nominee to serve as the Inspector General of the Export-Import Bank. 

At the outset, I would like to thank my family, friends, and colleagues for their support, specifically my family who instilled in me 

qualities like honesty and integrity, perseverance and hard work; 

my wife, Jana, who has been unfailingly supportive for 17 years; 

and my boys, Micah and Levi, who is not here. They keep me 

grounded and serve as rambunctious reminders of why we are all 

here, to improve our country for future generations. 

I come from a long line of small business operators, from my 

grandparents, who owned a small deli in West Philadelphia, to my 

father, who is here today, who started three successful businesses 

and used our home as collateral when times got tough, to both my 

brothers—and another one is here today—one of whom runs a 

manufacturing company that exports products all around the 

world, from a small factory right up the road in Baltimore. 

As you can see, small business is in my blood. Unfortunately, I 

was the black sheep of the family who went to law school. The good 

news, however, is that I followed in my mother’s footsteps and 

dedicated my career to public service, focusing specifically on uncovering waste, fraud, and abuse in Government programs. I started my public service here, in the U.S. Senate, conducting oversight 

for the Permanent Subcommittee on Investigations. During my PSI 

tenure, I led an investigative staff through numerous complex, biVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00016 Fmt 6633 Sfmt 6633 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
13 

partisan inquiries that identified waste and abuse in important 

programs, such as Medicare and the United Nations. 

After 51⁄2 years at the Senate, I joined the special investigations 

unit at the Department of Justice OIG. During my 5 years there, 

I led several sensitive matters, such as the investigation that uncovered pervasive misconduct in the Department of Justice voting 

section. 

In 2014, I moved to the Department of Commerce OIG, where I 

currently serve as the Assistant Inspector General for Investigations. With the help of our highly talented staff, I spearheaded a 

revitalization of the Office of Investigations, restoring its integrity 

and professionalism and creating a culture of ownership and success. I am pleased to report that we have achieved considerable results in a very short time. 

It is the nexus between these two threads, my experience in Government oversight on the one hand and my family’s background in 

small business on the other, that makes me so excited at the prospect of becoming the Inspector General for the Ex-Im Bank. I appreciate Ex-Im’s important mission of supporting American jobs, 

including those in small businesses, by facilitating the export of 

goods and services abroad. The Inspector General plays an integral 

role in that mission, by providing objective oversight to promote integrity, economy, efficiency, and effectiveness in Ex-Im’s operations. 

I am fortunate to have served under the leadership of strong role 

models, including leaders here in the Senate and stalwarts in the 

IG community, on how to run probing, objective investigations that 

seek to uncover the truth and effect positive change. With that in 

mind, if I am confirmed, I would strive to be an agent of such positive change, focusing on eliminating waste, fraud, and abuse, identifying problems, and making recommendations to Ex-Im’s leadership. 

I believe that an OIG can fulfill its mission to provide independent oversight while simultaneously maintaining a constructive 

relationship with the agency. I have done just that at the Department of Commerce. Now our oversight has been consistently probative, insightful, and independent, which has included telling 

hard truths as necessary. But it is all built on a foundation of good 

faith and the shared goal of improving the agency’s results for the 

benefit of the American taxpayer. I look forward to developing the 

same type of healthy and productive relationship with Ex-Im’s 

Board and the staff. 

I also appreciate the importance of maintaining strong relations 

with this Committee and other Ex-Im stakeholders in Congress. In 

light of my 5 years conducting oversight here at the Senate, the 

significance of that relationship resonates with me on a personal 

level. With that in mind, if confirmed, I will maintain direct and 

frank communications with this Committee and others in Congress. 

In closing, I thank the Committee for its consideration of my 

nomination, and if confirmed, I will work with you to achieve our 

common goals. 

Thank you, and I look forward to your questions. 

Chairman CRAPO. Thank you, and before I ask my questions I 

probably should not go down this row but I am going to. I notice 

14 

a couple of our former colleagues in the audience, and I just wanted to welcome you. Former Congressman Bill Archer just came and 

joined us. Bill. I think both of us served in the House with Bill, 

Sherrod and I did, and I am sure other Members of the Committee 

did. And former Senator Mark Pryor, we welcome you here as well. 

Now I have probably started down a road I should not have 

started traveling. I apologize to other members in the audience if 

I did not introduce you. 

My first question is for you, Mr. Garrett. There has obviously 

been a lot of controversy surrounding your nomination. There have 

been a lot of articles and letters surrounding your past opposition 

to the Export-Import Bank and how, as president, you will operate 

the Bank. 

I want to give you just a minute to respond to that, but particularly I would like to have your assurance—and I think you have 

already given this but I would like to raise it—your assurance that 

you will call regular meetings, you will bring the applications and 

business of the Bank before the Board, and that you will operate 

the Bank as the President intends it to be operated. 

Mr. GARRETT. Thank you, Mr. Chairman, for that question. So 

it’s a two-parter, I guess. The first part is that, yes, as I stated in 

my opening statement, I am honored to have received this nomination because I’m in line with the President’s overall agenda, which 

is to make the country more prosperous, with the complete understanding that the only way we get there is a stronger economy, and 

the only way we get there is stronger exports. 

Two, the second part of the question, the short answer is yes. 

The longer answer is the one that I gave in my opening statement, 

that yes, if confirmed, you will see, and you have my commitment, 

that the Bank will continue to operate, that you will continue to 

receive, solicit, get applications for loans and guarantees, they be 

diligently reviewed and processed by the Board, and those loans 

will be executed, going back to the ultimate goal to provide that 

support for the manufacturing sector of this country. Thank you. 

Chairman CRAPO. Thank you. And as I reminded all of our Senators at the outset, we have only 5 minutes. I have three left, and 

so I want to ask—I am going to give you a pass, Mr. Greenblatt. 

I would like to ask the other four members of the—or nominees for 

the Board to quickly, in 30 or 40 seconds, just tell me, U.S. companies are increasingly challenged by subsidized export financing 

from China and other foreign Nations, and I would just like you 

to quickly give me your ideas for enhancing U.S. competitiveness 

in this landscape. 

Ms. REED. Thank you, Chairman. Coming from West Virginia, I 

know the importance of small business, and so that would be one 

of my initiatives. I would make sure that our small businesses are 

informed of our products, and are applying to us, as the Bank of 

last resort, if there is a need. 

Also, we all care about being good steward of the taxpayer dollar, 

and so while we are trying to make the Bank be as successful as 

possible, if I am confirmed, I also will be focused on oversight as 

a Board member. 

Chairman CRAPO. Thank you. Mr. Bachus. 

15 

Mr. BACHUS. Mr. Chairman, first of all, I would say that the financial product that has been offered in the past has sometimes 

not been adequate and adequately communicated to small businesses. I would use force multipliers, trade associations, local and 

State officials, our congressional partners, our small banks to reach 

small businesses. 

Chairman CRAPO. All right. Thank you. 

Mr. BACHUS. Thank you. 

Chairman CRAPO. Thank you. Ms. Pryor. 

Ms. PRYOR. Thank you, Mr. Chairman. As Ranking Member 

Brown mentioned in his opening statement, China alone, in the 

last 2 years, has surpassed what the Export-Import Bank has done 

in its entire history. So not only is it important to get the Bank 

fully up and running, once a quorum exists, and if I am confirmed 

to the Board of Directors, I will look to support the Bank’s mission 

to growing jobs and exports. It is not about competing. It is really 

about fair competition and making sure that we are leveling the 

playing field for businesses of all sizes, so that we can go out and 

compete. American manufacturers make great products and I am 

confident in their ability to compete on quality and price. 

Chairman CRAPO. Thank you. Ms. Slacik. 

Ms. SLACIK. Mr. Chairman, my vision for the Export-Import 

Bank is that we help our great American companies, large and 

small, get their fair share of the nearly $50 trillion of infrastructure spending that is going to happen around the world in the next 

5 to 10 years, and in that way help the citizens of this country, the 

hundreds of thousands of them that are only making between $10 

and $15 an hour, and help them make between $50 and $100 an 

hour. 

Chairman CRAPO. Thank you, and you guys did it with 1 second 

to spare. I appreciate it. 

Senator Brown. 

Senator BROWN. Thank you, Mr. Chairman. I first thank Ms. 

Pryor for rejecting the term ‘‘Rust Belt.’’ It diminishes and demeans our workers and our region. Thank you for that. 

I want to start with some yes-or-no questions, and they are yesor-no questions and I would like yes-or-no answers. For our nominees, starting with Ms. Slacik and moving from our left—your right 

to left, my left to right. Ms. Slacik, do you believe the Ex-Im Bank 

is the most shameless example of crony capitalism? 

Ms. SLACIK. No, I do not. 

Senator BROWN. Ms. Pryor. 

Ms. PRYOR. I would agree with Claudia, no. 

Mr. BACHUS. No. 

Ms. REED. No. 

Mr. GARRETT. No. 

Senator BROWN. Thank you. Do you believe, starting again, Ms. 

Slacik, do you believe the Bank embodies the corruption of the free 

enterprise system? 

Ms. SLACIK. Absolutely not. 

Ms. PRYOR. Agree. 

Mr. BACHUS. No. 

Ms. REED. No. 

Senator BROWN. Mr. Garrett. 

16 

Mr. GARRETT. No. 

Senator BROWN. Do you believe the Export-Import Bank mocks 

the American dream? Yes or no. Ms. Slacik. 

Ms. SLACIK. No, sir. 

Ms. PRYOR. No, sir. 

Mr. BACHUS. No, Senator. 

Ms. REED. No, sir. 

Senator BROWN. Mr. Garrett. 

Mr. GARRETT. No. 

Senator BROWN. I do not think it will come as a surprise by those 

three quotes are from statements that Mr. Garrett made as a member of the House in 2015. Mr. Garrett voted against Ex-Im Bank 

reauthorization in 2015 and in 2012. So my question, Mr. Garrett, 

for you, is do you retract your call to shut down the Bank? 

Mr. GARRETT. Thank you. So as I stated in my opening statement, should I be confirmed, I look forward to making sure that 

the Bank is operational, fully operational, and conducts the mission—— 

Senator BROWN. But—I heard that—— 

Mr. GARRETT. ——that Congress sets for it—— 

Senator BROWN. ——in your opening statement, but—— 

Mr. GARRETT. Thank you, Senator. 

Senator BROWN. ——I—there was nothing in your opening statement retracting—let me back up. Secretary Perry, as we know, famously called for the elimination of the Department of Energy back 

in 2011, but he also said, during his confirmation hearing, this 

year, that upon learning about DOE’s work he ‘‘deeply regretted his 

previous statements.’’ There is nothing like that in your previous 

statement. So were you wrong? Do you wish to retract your past 

statements regarding Ex-Im? 

Mr. GARRETT. So thank you for the question, Senator. As you indicate, my prior statements are all a matter of public record. My 

statement here today is what my intention is, should I be confirmed to lead Ex-Im Bank, with regard to full compliance of the 

legal reform of 2015, to see to it that it is a fully functional bank 

and one that actually completes and comports with the reforms 

that were enacted in 2015. Thank you, Senator. 

Senator BROWN. So I—you know, I do not quite know where to 

go with that. So you have changed your position on Ex-Im, just to 

be confirmed? 

Mr. GARRETT. Senator, if the question is what has changed since 

2015, what we have seen change is a new Administration, and 

what we have seen change is a new agenda by this Administration 

to see to it that the economy actually grows and that businesses 

are given a fair chance to grow their businesses, both nationally 

and internationally as well. That is a significant change since 2015. 

Senator BROWN. It seems—— 

Mr. GARRETT. Thank you, Senator. 

Senator BROWN. OK. Thank you, Mr. Garrett. It seems, to me, 

what has changed is you have been offered this good-paying job to 

run the Export-Import Bank, not the Export-Import—not the 

change of the Export-Import Bank but perhaps the change of your 

situation. It is clear to me you have a history of ignoring the jobs 

lost in Cleveland and West Virginia and Maryland and Alabama, 

17 

because of the inability of this Congress to fill the—fill out the complement of confirmed nominees, and it is clear to me that—it is 

clear to me, fortunately we have four other nominees that are— 

that absolutely believe in the mission of the Export Bank. 

Let me ask one other question of all of you. Will you commit to 

responding—starting again with Ms. Slacik—will you all commit to 

responding to any inquiries that I make, the Chairman makes, or 

anybody on this Committee makes of you in regards to your work 

at Ex-Im? Ms. Slacik. 

Ms. SLACIK. Of course. 

Ms. PRYOR. Yes, absolutely, Senator. 

Mr. BACHUS. Yes, Senator. 

Ms. REED. Yes, sir. 

Senator BROWN. Thank you. Thanks, Mr. Chairman. 

Chairman CRAPO. Senator Toomey. 

Senator TOOMEY. Thank you, Mr. Chairman. I have got a question for Ms. Pryor and Ms. Slacik. Is it important to you that ExIm Bank not lose taxpayer money under your leadership? Just yes 

or no, preferably. Is that important? 

Ms. SLACIK. Yes, sir. 

Ms. PRYOR. Yes, sir, it is. 

Senator TOOMEY. OK. And so as a member of the Board, would 

you commit to working for reforms and policies and procedures that 

you feel would appropriately diminish the risk that taxpayers 

would lose money? Would you commit to working in that fashion? 

Ms. SLACIK. Of course. 

Ms. PRYOR. Yes, absolutely. 

Senator TOOMEY. OK. Good. So I am glad to hear that our Democratic nominees are open to working on reform to minimizing, or 

at least appropriately reducing taxpayer risk. I know that the Republican nominees are open to that as well. 

Mr. Chairman, it has long been no secret I am deeply skeptical 

about the mission of Ex-Im Bank. I know that I am in the minority 

in the U.S. Senate with these views. However, I do share interesting company. President Obama once said, and I quote, ‘‘The ExIm Bank is little more than a fund for corporate welfare.’’ Bernie 

Sanders, with whom I occasionally disagree, has opposed the reauthorization. 

I have concerns at several levels. I think this is a very dubious 

proposition for taxpayers. Ex-Im proponents have often claimed 

that the Ex-Im Bank only takes risks that private lenders are unable or unwilling to take, and yet, at the same time, proponents 

will argue that Ex-Im only makes safe bets. Well, the fact is it is 

impossible to have both. The Bank is either crowding out private 

sector lenders and guarantors or it is taking on transactions that 

the private sector will not take on, at least not at the way it is 

priced. 

And that leads me to a fundamental concern that I have, which 

is that Ex-Im wins business necessarily by systematically underpricing the risk, relative to the way the market views that risk. 

That is why businesses turn to Ex-Im. And it is not just me who 

has this view. In 2014, the CBO reported, using a fair value accounting, which is simply accounting for the risk, they expect ExIm to lose $2 billion for taxpayers over the next 10 years. 

18 

In addition, Mr. Chairman, as we all know, inevitably, Ex-Im 

Bank ends up picking winners and losers. It is a great deal. If you 

are an exporter and Ex-Im subsidizes the foreign company that 

buys your product, that is great. But sometimes that results in an 

unfair advantage for some and not others. We heard—Congress has 

heard testimony from Delta about a famous transactions in which 

Ex-Im subsidized aircraft for Air India, which gave them a competitive advantage over Delta, which resulted in the loss of about 1,000 

American jobs at Delta. I could go on about this but I think I probably will not change any minds on the Committee, Mr. Chairman. 

Let me say this about our nominees, all of whom I think are 

very, very good men and women and capable individuals. Given 

that I know that I am in the minority in this view, I am willing 

to support the confirmation of all of these nominees, which would 

restore a quorum and allow the Ex-Im Bank to function. However, 

I think reforms that protect taxpayers are essential, and for that 

reason I will support these nominees either on block, or I will support them sequentially, provided that Scott Garrett is confirmed 

first. And as long as that is the case, and Scott Garrett is confirmed by the U.S. Senate, then I will support, as I say, reconstituting the quorum on the Board. If not, then I will do everything 

I can to prevent Ex-Im from getting a quorum. 

Thank you. 

Chairman CRAPO. Senator Warren. 

Senator WARREN. Thank you, Mr. Chairman. I want to follow up 

on Senator Brown’s question. Mr. Garrett, the President has nominated you to lead the Export-Import Bank. This is a Government 

corporation that helps American companies sell their products 

abroad, and the Bank authorizes billions of dollars in taxpayerbacked loans and loan guarantees, and supports thousands of jobs 

in this country. 

Now I have had a lot of serious concerns about the Bank, and 

I have pushed for changes, to make sure that it focuses on helping 

small businesses rather than a handful of giant corporations. But 

you spent your time in Congress trying to kill the Bank, not to reform it. You said that the Bank ‘‘embodies the corruption of the 

free enterprise system.’’ Those were your words. And now you want 

to lead that very same bank. And in your testimony you say that 

if you are confirmed, ‘‘The Bank will continue to fully operate, 

point blank.’’ 

OK. So that is a 180-degree switch on this issue in under 2 

years. And I do not understand why anyone should believe what 

you are saying now. How do we know you are not hoping to get 

confirmed so you can go back to what you really want to do, and 

that is kill the Bank that embodies the corruption of the free enterprise system? 

Mr. GARRETT. Thank you, Senator, for the question. As I stated 

in my opening statement, my commitment to you is to see to it that 

the reforms that were put in place are fully carried out. Having 

served in Congress and taken part in those debates, I recognize the 

significance and the importance of the reforms that Congress put 

in the 2015 Reauthorization Act for Ex-Im. 

Should I be confirmed, I will see to it, and I am committing to 

you personally, that I will do everything in my power to see to each 

19 

and every one of those are completed fully, and if that is done, that 

goes to my opening statement that you will then have a fully functioning, operating bank, as set forth by the rule of law, as established by this Committee in the Congress. 

Senator WARREN. Well, you can say all you want, that you want 

the Bank to function, but my question is, I just do not know why 

you would have any credibility on this. 

So let me ask the question another way. When you were in Congress, you and other Bank opponents forced Congress to let the 

Bank’s charter expire for 5 months in 2015. The Bank was not able 

to guarantee any new loans during that time, and since then the 

Bank has not been able to approve any transactions over $10 million. 

That cost us real jobs in Massachusetts. Before your shutdown 

efforts, from 2014 to 2015, 78 companies in Massachusetts benefited from $177 million in Ex-Im Bank authorizations, but in 2016 

and 2017 combined, only 49 companies got Ex-Im Bank assistance, 

and the total authorization dollars dropped by more than half. 

You know, the numbers for small businesses in Massachusetts 

were even worse. Only about half as many of them got help from 

the Bank after your shutdown as before it. So your shutdown of the 

Bank cost Massachusetts jobs, it cost jobs in other parts of the 

country. You have apparently now reversed your position on the 

Bank. But I noticed in your written testimony you do not give a 

single reason for the reversal. 

So I want to ask this question. Will you admit now that your crusade to kill the Bank was a mistake? 

Mr. GARRETT. Thank you, Senator. As I answered previously, my 

statements, my positions, and my votes with regard to Ex-Im during my tenure in Congress are a matter of public record. 

Senator WARREN. Yes. 

Mr. GARRETT. Today I am trying to make my positions as clear 

as I possibly can to you. 

Senator WARREN. Well, then that is why I am asking you. Mine 

is really just a yes-or-no question. Will you admit that your crusade 

to kill the Bank was a mistake? 

Mr. GARRETT. Thank you, Senator. As I have said, there is something new that has occurred since 2015. 

Senator WARREN. I am sorry. Is that a yes or a no? 

Mr. GARRETT. Thank you. Since 2015—— 

Senator WARREN. I am still not hearing a yes—can I just have 

a yes or no? 

Mr. GARRETT. I appreciate that, and I know oftentimes when I 

was on the other side, in your capacity, asking for a yes or no, 

sometimes it does not necessarily fit with the answer. So I am trying to give you the full answer, and put it in context. 

Senator WARREN. Well, actually, let me—let me just do this, in 

the interest of time, because I know we are running out of time 

here. If you are not willing to say that your prior efforts to kill this 

Bank were a mistake, but now you want us to believe that you are 

going to try to run a fully functioning bank if you are confirmed, 

we have a real problem. I think it looks like you have done what 

is politically convenient. When you were in Congress, the far right 

and the Koch brothers wanted to kill the Bank so you took up their 

20 

cause, and now it is politically convenient for you to approve of the 

Bank so you can get a job in this Administration. 

You have not given us a single principled reason for this change. 

This Bank needs help—I understand that—and it needs change, 

but it needs a serious leader to do that, and I cannot imagine entrusting this effort to someone who is so obviously willing to blow 

with the political wind. 

If the President is serious about having a functioning Bank, then 

the President needs to nominate someone to be put in charge who 

is committed to making that Bank function and has a history that 

demonstrates that. 

Thank you, Mr. Chairman. 

Chairman CRAPO. Senator Corker. 

Senator CORKER. Thank you. I thank all of you for your willingness to serve and I am not coming at this question with any agenda. We have had a debate, I guess, through the years about ExIm Bank, and there has been a debate about whether, you know, 

it actually fills a role that otherwise cannot be met by the private 

sector. And then there has been a debate on the other side, and 

truly, I have been ambivalent about it in many ways. I understand 

that all of you are going to be confirmed, I hope, and that the Bank 

is going to continue on. 

But, you know, it was set up—it is a policy of the United States 

that the Bank and the exercise of its functions should supplement 

and encourage and not compete with private capital, and we have 

walked through some of the checklists that occur, you know, asking 

about whether you are able to get private financing, and people 

just say yes or no. We realize that is not a very strenuous test. 

And I have seen Boeing, and I know we keep using Boeing because they obviously from benefited from this. I have nothing whatsoever against Boeing. I am glad they are located in our country 

and build outstanding aircraft. But they have really flourished 

since there has not been a quorum, and they have been able to continue to do what they are doing, it seems, exceptionally well. 

So if we could just have a discussion with the 3 minutes and 35 

seconds we have left, a little bit about that. And I will start maybe 

with you, Spencer, since no one has paid any attention to you yet. 

Talk to me a little bit about, as you all carry out these duties, this 

tension that exists where we would like to make sure that the 

United States manufacturers have every advantage other countries 

have, and their manufacturers. At the same time we do not wish 

for this to end up crowding out private capital. And, by the way, 

the world has changed dramatically since this began. I mean, capital markets are very fluid, they are there. 

So talk to me a little bit about this tension that we have. 

Mr. BACHUS. Well, you are exactly right. I have had some of the 

same concerns. President Reagan actually was the one that put in 

some of the requirements that the Bank make a profit. And, he had 

the same debate and came down on the side that there are times 

when other ECAs—and at that time there were about 20 ECAs— 

were offering aid to foreign corporations and the United States’ Export-Import Bank should do the same, to level the playing field 

even though some people may call it as a subsidy when there was 

private funding available. 

21 

The Ex-Im charter says that it will try to do that. I have talked 

to a lot of the banks and they consider themselves partners, not adversaries. I have not had one say that Ex-Im has filled that role. 

But let me give you a quick example of where the Bank is essential. There was a poll of the seven largest construction companies 

in the United States that do business overseas, and all seven of 

them said that the contracts they bid on, 77 percent of them required ECA funding. And so they were not eligible to bid on 77 percent of those contracts because Ex-Im was not available. So what 

they did is they partnered with foreign construction companies to 

get that, and the goods and the services were supplied by foreign 

companies. You are talking about Bechtel, Fluor. You are talking 

about, really, tens of billions of dollars of lost opportunities. 

It is such a nuanced thing. For instance—— 

Senator CORKER. Let me do this, if I could, to get just another 

point of view, and thank you for that. 

Claudia, do you mind, since you have been part of Ex-Im in the 

past, could you help illuminate that ambivalence that I have? 

Ms. SLACIK. Certainly, Senator. I think as Spencer says, leveling 

the playing field is important, and we are not supposed to compete, 

and as Chief Banking Officer we went through a lot of work to 

make sure that we were not competing with the private sector. 

First of all, the companies had to certify it, then we talked to banks 

to find out if they were, in fact, willing to provide the financing, 

and then we, amongst ourselves, talked about the state of the capital markets and could, in fact, the private sector capital markets 

provide the financing that we were. 

So we did a lot of due diligence about this, and one of the areas, 

I think, that is not being mentioned so much is what we do for 

small business, or what the Bank does for small business—— 

Senator CORKER. And now—— 

Ms. SLACIK. ——assuming the risk for the small companies, that 

banks are not willing to do. 

Senator CORKER. But in your mind, having been there, you truly 

believe that without Ex-Im Bank, United States—companies that 

are based here would be at a disadvantage to people around the 

world and that capital markets cannot meet the needs, in many 

cases? 

Ms. SLACIK. Sir, I know it. In 2016, the financings of the Bank 

were $200 million. China was $34 billion. That is 170 times. 

France did $9 billion. Great Britain did $3 billion, while we did 

$200 million—— 

Senator CORKER. Yeah. 

Ms. SLACIK. ——leaving it only to the private sector. 

Senator CORKER. Thank you for letting me go over a few minutes. I thank all of you. Thank you. 

Chairman CRAPO. Thank you. Senator Heitkamp. 

Senator HEITKAMP. Thank you, Mr. Chairman. In the audience 

today are a couple of folks that I met, one from North Dakota, 

Kristin Hedger, is here, and Steve from California, who was a 

champion, Vietnam vet, a champion for the Ex-Im Bank because it 

was so critically important to his operation. And at great cost, Mr. 

Garrett, at great cost, they traveled here, they talked to the Media, 

22 

they talked to members, and they wondered why the heck they did 

not have an Ex-Im Bank. 

And I had to answer that question for them all the time. I had 

to say because the ideological right has decided it is not a worthy 

institution. You embody the ideological right on this. When you 

were asked earlier, you said, no, now there is a new change because now we believe in a stronger economy, with stronger exports. 

We cannot have a strong economy without strong exports. You 

have opposed the Bank, not in the last iteration of reauthorization, 

but for a long time. That is correct, right? 

So let me give you some numbers. From 2013 to 2016, the ExIm Bank supported almost a half a million good-paying, middle 

class jobs. If you had your way in the 2012 reauthorization, those 

middle class jobs would have gone to other countries. Additionally, 

from 2013 to 2016, the Ex-Im Bank sent to the taxpayers, the 

Treasury, $2.5 billion—$2.5 billion for reinvestment in priorities by 

the Congress. The default rate during a similar period of time was 

less than 0.5 percent—0.3 percent, 0.3 percent default rate for a development bank. 

And so now, after the last reauthorization, which we fought very 

hard for, you issued a press statement that said in a move that 

epitomizes Washington’s addiction to crony capitalism, Congress 

resurrected a dead Government welfare program by voting to reauthorize the Export Bank today, and you went on to say, ‘‘I will continue to fight to finally put an end to the Ex-Im’s corruption of the 

free market system.’’ And today, despite two opportunities here, 

you have refused to say you were wrong, that you owe an apology 

to the business people in this room who need the Ex-Im Bank. 

Will you, today, apologize to all the businesses and all the workers who have lost their jobs because all the back-and-forth, because 

of ideology and lack of common sense? Will you apologize to those 

businesses today for shutting down the Ex-Im Bank and causing 

them economic harm? 

Mr. GARRETT. I appreciate that question, Senator. Chairman 

Bachus made reference to the American dream which was to own 

a home. And I think he was correct that you cannot own a home 

unless you have a job and that you actually, nowadays, have to 

have a good-paying job. 

As I said, Senator, to facilitate getting those good-paying jobs, 

you need to have a strong manufacturing base. To facilitate doing 

that, we need to have a proverbial level playing field. My commitment to you, Senator, is to see to it that now that Congress has 

passed the reforms of 2015—— 

Senator WARREN. Mr. Garrett, you have said the same thing over 

and over again. Why is it so hard for you to say you were wrong 

about the Bank? Why is it so hard for you to say that the Bank 

is a critical and essential piece of trade infrastructure, of business 

infrastructure, and job infrastructure that you were wrong about, 

and that you now want to strengthen, but you were wrong? Why 

in the world would we give you a job when you refuse to say that 

you were wrong about your past statements about the Ex-Im Bank? 

I just—I am merely—I am not trying to be argumentative. I just 

need to know that you are not there as a saboteur, that I am not 

going to be fighting this fight on reauthorization, if I am given a 

23 

chance to come back here. I believe in this Bank and I am not sure 

you do, and that is a big problem for me. 

So can you acknowledge right now, in the last 10 seconds that 

I have, that you were wrong about the Ex-Im Bank? 

Mr. GARRETT. Thank you, Senator, and to the point you raise 

about reauthorization, I do look forward to working with you to see 

to it that reauthorization occurs. 

Chairman CRAPO. Senator Rounds. 

Senator ROUNDS. Thank you, Mr. Chairman. Mr. Garrett, I have 

had the opportunity to visit with you twice privately, and then a 

chance to work with your team once. The question that I am asking 

is the one that I have asked in both of our private meetings so it 

is not a surprise to you, sir. 

Look, I truly believe that are a man of principle, and I think, in 

your previous statements, you truly believed what you have said in 

the past. My challenge has been—and I am going to read these out 

when we do this—my concern is that, as a man of principle, you 

are going to have a very difficult time trying to make a change 

without an explanation of what happened. 

While you were serving in the House of Representatives you said, 

on multiple occasions, that you did not think that the Export-Import Bank should continue to exist. For example, during the debate 

on the 2015 reauthorization of Ex-Im, you said the following on the 

House floor—and, by the way, these are exactly the same quotes 

that I have asked for written comments on twice now, and I am 

still waiting, if you do not feel comfortable trying to answer them 

today verbally. 

‘‘In June of this year’’—this is your quote—‘‘In June of this year, 

after 81 years of doling out taxpayer-funded welfare for mega-corporations, the American people said enough and Congress let the 

Export-Import Bank expire. Yet today, through a little-known and 

little-used legislative maneuver being used to circumvent the will 

of the American people, they are resurrecting this fund for corporate welfare. 

‘‘The Export-Import Bank transformed the role of Government 

from a disinterested referee in the economy into a biased actor that 

uses your taxpayer dollars to tilt the scales in favor of its friends, 

and it mocks the American dream by making victims of the 

startups that dare to compete. If we promoted responsible Government policies, responsible budget policies, expanded free markets, 

lowered and simplified the income taxes, and repealed onerous regulations, American businesses would thrive in the global markets. 

‘‘But none of that is on the table today, on what we are about 

to consider. Instead, the proposal before us is the resurrection of 

a bank that embodies the corruption of the free enterprise system. 

Yes, we have the opportunity today to save capitalism from cronyism. Yes, we have the opportunity to protect the American taxpayer, and the American dream, and to preserve free enterprise. 

We have the opportunity today to keep the Export-Import Bank out 

of business. We should take each of these opportunities.’’ 

In addition, when you were speaking at an anti-Ex-Im press conference in 2015, you said, and I will quote, ‘‘It is hard to imagine 

anything more unfair and un-American than having the Government financially support mega-corporations at the expense of small 

24 

businesses and American workers, but that is exactly what has 

been happening and it will continue to happen if we do not let the 

Export-Import Bank expire next month. It rewards those with close 

relationships with Washington bureaucrats and makes victims of 

startups that dare to compete against them, literally picking winners and losers in our economy. 

‘‘Ex-Im has transformed the role of Government from a disinterested referee that guarantees a free and open marketplace into 

a biased actor that tilts the scales in favor of its friends and businesses. We have the opportunity to save capitalism from cronyism 

and to fulfill a promise to the American people to work for them 

instead of a select few with special connections in Washington. For 

the sake of the American taxpayer and preservation of the free enterprise system, Congress should put the Export-Import Bank out 

of business.’’ 

My question, the same one that I have asked twice now, personally, and the question that I still think you need to share with us, 

as a man of principle, I believe that you truly believe the statements that you made. What would have made you change your 

mind about whether or not the Export-Import Bank should exist? 

And I think this is critical that you be able to share what has 

changed your mind. 

Mr. GARRETT. Thank you, Senator, and again, thank you, as I 

said at the outset, for spending time not once but twice to meet 

with me to discuss these things and to go over your concerns. I appreciate that. 

So one of your colleagues, who I think has left now, had made 

the statement that she, too, agrees that even now that Ex-Im Bank 

needs help, to quote, ‘‘needs change.’’ Even now, after the 2015 reform it needs to be changed. In 2015, when a lot of those quotes 

were taken from—and I did not write all the dates down when you 

said them—when we wrote the reauthorization bill and—I believe 

my colleague to my right made reference to this as well, the Chairman—that many or some of those changes were also asked back in 

2012, and they were not effectuated. And many of those 

changes—— 

Senator ROUNDS. I apologize. I am out of time—— 

Mr. GARRETT. Yeah. 

Senator ROUNDS. ——and it is my statement that made us out 

of time. 

Mr. GARRETT. OK. 

Senator ROUNDS. ——if you would, would you commit to sending, 

in writing—— 

Mr. GARRETT. ——something to you? Sure. 

Senator ROUNDS. ——an explanation, please—— 

Mr. GARRETT. Yeah, yeah, yeah. 

Senator ROUNDS. ——because I still think it is a matter of—and 

this is the critical part—if you are philosophically opposed to the 

concepts, and if you truly believe that this bank represents crony 

capitalism, by definition, I think it is more than just simply asking 

for a reform. I think it is a matter of whether or not, as a principled man, you truly believe that this bank can operate without 

being a part of a crony capitalist organization, sir. 

Mr. GARRETT. Thank you. 

25 

Senator ROUNDS. But I would appreciate that in writing. Thank 

you. Thank you, Mr. Chairman. 

Chairman CRAPO. Senator Donnelly. 

Senator DONNELLY. Thank you, Mr. Chairman. Thank you to all 

the witnesses and to your families. 

Mr. Garrett, here is what I do not get. When you have been opposed to this for so long, and said such things about the Ex-Im 

Bank, why on earth do you want to run this thing when you have 

been so opposed to it? It makes—it seems the exact 180 of the positions that you have taken before, and it makes it very, very hard 

for all of us to take this seriously when you say these things and 

when we see crony capitalism and we see other things. 

Why on earth do you want to do this when this organization is 

something that I have supported nonstop, and basically battled 

against you for years on, fighting for its survival, I now look up and 

you want to be the head of an organization that you have been 

against forever? 

Mr. GARRETT. Thank you, Senator. I am excited to be able to be 

potentially, if confirmed, in the position to lead the organization. It 

would be in that position that I would be in a different role than 

I was when I was in Congress. This would be an executive role, 

and it would be in that role, at that point—maybe this goes to your 

question, to some extent, Senator—I actually would carry out the 

full extent of the reforms that Congress has been asking for years, 

in order to—— 

Senator DONNELLY. But, Congressman, let me ask you this. 

Mr. GARRETT. ——in order to effectuate what should be done. 

Senator DONNELLY. It was not about reforms. You did not think 

it should even exist. And when I talked to you a few months ago, 

I asked you, do you personally believe we should have an ExportImport Bank, not whether you have been appointed by the President and so this is your mission or whatever. Do you personally believe there should be an Export-Import Bank? And you refused to 

answer that question, so I will ask you again. Do you personally 

believe that we should have an Export-Import Bank in this country? 

Mr. GARRETT. Yes, Senator, I do not remember the exact exchange but I will give you the answer here. So, yes, Congress has 

passed legislation to do what? To get to the level playing field that 

does not exist in the world today. There are, as has been alluded 

to, or actually not alluded to but referenced by my colleagues to the 

right, numerous countervailing factors that currently weigh against 

manufacturers in this country. Ex-Im is an element to be able to 

deal with that. 

Senator DONNELLY. Well, the question is, do you personally believe in the mission of the Ex-Im Bank, and if so, what has 

changed from a few years ago? 

Mr. GARRETT. I believe that Ex-Im is an element—maybe ‘‘element’’ is not a good word—how about a tool in the toolbox, might 

be a good expression to be able to deal with—— 

Senator DONNELLY. Well, why wasn’t it a tool in the toolbox 

when you called it crony capitalism? 

26 

Mr. GARRETT. And again, this goes to your question, so maybe I 

can give an answer to the question here as opposed to giving it in 

writing. 

Senator DONNELLY. But you think there has been such significant changes that now it is not crony capitalism? 

Mr. GARRETT. What we want to address—— 

Senator DONNELLY. No, it’s my turn now. 

Mr. GARRETT. I know. I know. I just remembered one of the questions but I do not want to bring up a private conversation. 

Senator DONNELLY. Do you believe it is not crony capitalism 

now? 

Mr. GARRETT. So what I believe is what we need to have is openness and transparency and all businesses can make themselves 

available to the assistance. 

Senator DONNELLY. I—you—— 

Mr. GARRETT. So that you are not picking winners and losers, 

Senator. 

Senator DONNELLY. Let me ask you this. You go to 2019, we have 

reauthorization coming up, as my colleague, Senator Heitkamp, 

was talking about. Are you going to fight for the reauthorization 

of Export-Import Bank and for its continuance? 

Mr. GARRETT. The short answer is yes. I think I began to answer 

that in the last closing 10 seconds of a previous question. 

Senator DONNELLY. Well, what will you say to your former House 

colleagues who—our former House colleagues—who you told it was 

crony capitalism, who you lined up to attack this, to try to put it 

out of business? This has helped an incredible number of Indiana 

companies. When they look and they go, Congressman, you know, 

3 years ago you told me this was crony capitalism and it is the 

worst place on earth. Why should I believe you now, other than you 

wanted the job? 

Mr. GARRETT. So, Senator, I look forward to working with all 

Members, from all perspective, on both sides of the aisle, with regard to the reauthorization process, to explain what has—by that 

time—transpired within Ex-Im and to explain that to Members. 

Senator DONNELLY. Well, I know my time is up. I want to thank 

all the witnesses for being here, and, in particular, I want to tell 

the Pryor family and their young son, who is such an extraordinary 

young man, how proud we are of him. Thank you. 

Chairman CRAPO. Thank you. Senator Shelby. 

Senator SHELBY. Thank you, Mr. Chairman. I have long held reservations about the Export-Import Bank operating in its current 

form. Just a couple of years ago, we had 2 days of hearings trying 

to come up with some way to reform the Export-Import Bank, right 

here in this Committee, to no avail. 

I believe that the Export-Import Bank is now rampant with corporate cronyism, corruption, and unaccountability. Some would like 

you to believe that the Export-Import Bank solely helps small businesses. This is simply not the case. Latest estimates indicate that 

the Export-Import Bank finances only 2 percent of total U.S. exports. This means 98 percent of exports from the United States are 

generated without the Bank’s financing. You need to think about 

that. 

27 

What is more, less than one-third of the Bank’s activities are actually designated to offset the effects of foreign subsidies. Over 50 

percent of the Bank’s subsidies are directed for use that has no justification provided, according to their records. 

Latest estimates indicate that the Bank, as I said, only finances 

2 percent. In one of the last 2 years that the Bank operated with 

a quorum, the top 10 beneficiaries profited from 75 percent of the 

Export-Import Bank’s total financing. The Bank, in its current 

form, does not function to help small businesses, that I have indicated. In addition, we are all familiar with the case, up here, of the 

Export-Import loan officer who accepted bribes for approving unqualified loan applications. 

However, the story is not the cause of the illness that is the 

Bank as it operates today, but rather—and I believe it is a symptom of a much larger problem. Between 2007 and 2014, there were 

792 reported claims of fraud at the Bank. This corporate cronyism 

also extends to the gray areas of the Bank’s operation, to practices 

that certainly skirt ethical lines of doing business. 

The Wall Street Journal has reported that in 2012, Boeing 

worked directly with Export-Import Bank officials to create tighter 

rules for aircraft loans that would benefit Boeing and help crowd 

out their competition. 

Are these truly practices that this body should look to continue? 

I hope not. 

I am never one to begrudge businesses for being successful. We 

want them all to be successful. However, the problem with the way 

the Bank currently operates is that it puts American taxpayers on 

the hook for deals that these large businesses could independently 

finance. 

Some large businesses have enough capital to buy their own 

bank. GE, for example, previously owned one of the largest 

nonbank banks in the world. These large corporations do not need 

the Export-Import Bank to run an efficient export operation. In 

fact, recent data provided by the Mercatus Center estimates that 

exports are rebounding in 2017, even without a quorum to finance 

larger transactions at the Export-Import Bank. 

And as Dan Griswold, the codirector of the program on the American economy and globalization at the Mercatus Center stated, 

‘‘The bottom line is that U.S. export growth was decelerating beginning in 2012, and has picked up again in 2017.’’ The Export-Import 

Bank’s status was simply not a factor. 

The truth is there are those in our country today who are concerned that their gravy train has run dry and they want it to restart at the expense of the taxpayers. 

Mr. Chairman, for the record I would like to submit five articles, 

as well as one data set for the record, to provide evidence of the 

claims that I have just made. These are the Wall Street Journal 

piece from March 12, 2015, ‘‘Boeing Helped Craft Own Loan Rule’’; 

one article from the Heritage Foundation, ‘‘Export-Import Bank 

Propaganda Versus Facts’’ by Diane Katz; three articles from the 

Mercatus Center, ‘‘The Biggest Beneficiaries of the Export-Import 

Bank’’, ‘‘Key Argument for Export-Import Bank Invalid’’, and ‘‘Celebrating Our Independence From the Export-Import Bank’’; one 

28 

data set from Veronique de Rugy, Senior Research Fellow at the 

Mercatus Center. 

Chairman CRAPO. Without objection. 

Senator SHELBY. Mr. Chairman, I want also to associate my belief with what Senator Toomey had to say earlier. I believe that 

Mr. Garrett is a man of principle. I worked with him when he was 

on the Banking Committee. I believe he would make an excellent— 

he is a principled man, and we need those kind of people at the 

Bank. I hope that we keep everybody together and we confirm everybody. If we do not, we will see what we can do to slow the process down, because the Bank is still corporate welfare. 

Thank you. 

Chairman CRAPO. Thank you. Senator Van Hollen. 

Senator VAN HOLLEN. Thank you, Mr. Chairman, and welcome 

to all of you. To my old colleagues from the House, Spencer and 

Scott, it is good to see all of you, and congratulations, all of you, 

on your nominations. 

Let me just start by responding a little bit to Senator Shelby’s 

comments, because we have here in the audience a number of representatives of Maryland businesses, and these are not big blockbuster businesses. These are small- and medium-sized businesses 

that have benefited in their work overseas, as a result of the ExIm Bank. We have someone here, Kip Freemann from Triumph 

Electronics, and they are a great employer in the State of Maryland. We have someone from BTE Technologies from Hanover, 

Maryland. They develop physical evaluation and therapeutic rehabilitation outcome equipment. 

In fact, 75 percent of the businesses in Maryland that benefit 

from Ex-Im are small businesses, and the Ex-Im Bank support, 

credit support, resulted in $331 million worth of authorizations in 

Maryland. And so I am pleased to say that when it comes to Maryland, we have got a lot of small- and medium-sized businesses that 

would not have that business but for Ex-Im. In fact, one-quarter 

of the employees of BTE are directly associated with their foreign 

sales that are helped by Ex-Im Bank. 

And, you know, the issue here is we do not have a world where 

everybody is operating under the rules of the economic textbooks. 

We are dealing with competitors who are putting their feet heavily 

on the scale in support of their businesses. 

And we are never going to be able to compete entirely with 

China. We do not want to compete with China in that regard. But 

you cannot bring a pea-shooter to a gunfight, and we need to make 

sure that we support those businesses who are facing unfair—unfair competition overseas from China. I mean, I think we have 

seen, in the most recent party Congress that just wrapped up, that 

they have a, sort of—their game plan is to dramatically extend 

their economic footprint, not just in that region but around the 

world. And if we do not at least provide some help to our folks to 

support jobs at home, then we are going to get crushed when it 

comes to that competition, as good as our businesses and companies are. 

So I wanted to ask the nominees to Ex-Im Bank about a fund 

that has been part of the Ex-Im Bank called the Tied Aid Fund. 

This is a fund, about $165 million, that has been used as a flexible 

29 

fund to say to a country, you know, if you do this business deal 

with the American business and support American jobs, we also 

may be able to help you on a minor infrastructure project, or whatever it may be. 

Now I know that kind of violates the rules of straight economics. 

Everybody gets to bid on the project. But anybody who has been 

to Africa or any other part of the world knows that China is killing 

us when it comes to these deals. And we can either say we are 

going to live in a textbook world that is not real, or we are going 

to at least provide some opportunity. 

So I am interested in your positions on that particular fund, because that fund was eliminated in the proposed budget from the 

Administration. And maybe we just go down the line and start with 

Mr. Garrett. 

Mr. GARRETT. Thank you, Senator, and good to see you—— 

Senator VAN HOLLEN. Good to see you. 

Mr. GARRETT. ——since our budget days. 

Two points. The first point is to say that I am glad to hear that 

some of your constituents are here today, and, should I be confirmed, I would look forward to meeting them in person along with 

you, on a visit to learn more about the one company that says onethird of its business is from that industry is from the Export Bank. 

Second, yes, the goal here is ultimately what?—the creation of 

jobs, these Maryland jobs or anybody else’s jobs. If this aid is an 

element in the toolbox—my expression—that facilitates the creation of jobs, then that is fine. If it ends up that it is actually coming via a cost that is a negative, then no. But the ultimate question 

that you have to ask, as any deal that comes through, is will this 

actually produce and sustain American jobs. 

Ms. REED. Senator, thank you very much. President Xi Jinping 

just incorporated the Belt and Road Policy into the Communist 

charter—just the past few days—and we know that they have 

plans to do infrastructure in 60 countries. I have traveled all 

around the world where I have seen that in action. As I quoted 

Chairman Archer, I do not believe in unilateral disarmament. And, 

I look forward to conversing with the Senate, if I am confirmed, 

about the role that tied aid could play in that. Thank you. 

Mr. BACHUS. Thank you, Senator. The OECD, at one time, tried 

to control other countries’ offering these same benefits. But in the 

last 3 or 4 years, that dam has broken. And they all offer even 

more incentives than we do. We are at a disadvantaged level with 

respect to the jobs we are able to capture. We do not level the playing field with Ex-Im. We tilt it a little more to our favor. And there 

have been some recent articles from think tanks, talking about the 

OECD, and how they have taken advantage of the shutdown. 

Senator VAN HOLLEN. Yeah. Thank you, sir. 

Ms. PRYOR. Senator, thank you for that question. I am not familiar with all of the specifics of the Tied Aid program but if I am confirmed I will look forward to working with my colleagues and learn 

more specifically about that program. 

What I can tell you is that I will commit to you that I will implement the charter as it has been authorized by Congress, and if 

these tools are available to help us grow small business exports, 

30 

and help us level the playing field, then I will definitely be supportive. 

Ms. SLACIK. Senator, during my time at the Bank, which was for 

21⁄2 years and billions of dollars of approval, not one of those involved Tied Aid. We did not feel we needed to do that. 

Senator VAN HOLLEN. Right. The issue now is given the increased use of Tied Aid by other countries, whether we should have 

that in our toolbox. 

But thank you, Mr. Chairman. 

Chairman CRAPO. Thank you. Senator Scott. 

Senator SCOTT. Thank you, Mr. Chairman. Thank you to the 

panel for being here this morning. I hope that the five of you do 

not feel left out of the conversation that most of us are having with 

Mr. Garrett. If you do, we will be happy to share the love with all 

of you. I am not sure that I would recommend that, but we will 

just move on. 

Mr. GARRETT. I will be happy to defer all future questions to my 

colleague, the vice-chair. 

Senator SCOTT. There is wisdom in all things sometimes. 

Mr. Garrett, you wrote me a letter and I think you were fairly 

clear. You said, and I quote, ‘‘To be absolutely clear, I pledge to 

keep the Bank fully operational and serving the functions that 

Congress intended with this last reauthorization.’’ You have restated that with great clarity during this hearing, and I thank you 

for that. 

You have said, just a few minutes ago, as it relates to the reauthorization in 2019, of the Bank, you said the short answer is yes. 

You, as President of the Ex-Im Bank will be supportive of the reauthorization. Did I misunderstand your position at all? 

Mr. GARRETT. Do you want the short answer? 

Senator SCOTT. I want the short answer. 

Mr. GARRETT. No, you did not misunderstand. 

Senator SCOTT. Thank you. 

The one question you have not answered is the one that is the 

simplest of questions. It is the question, what has changed. The 

one question that I have not been able to discern your position is 

why has your position changed. Your previous comments, that have 

been—we have heard about it for the last hour and a half or so— 

your previous comments and position are in clear contradiction 

with your current position and comments. 

The one thing that most of us know about you is that you are 

typically unambiguous, clear as a bell. You have consistently taken 

a position of character and integrity, and the question on the table 

is, what has changed? And a part of the answer that most of us 

seek, or perhaps, more importantly, the reason for the change is 

perhaps more important than the change. In other words, if we can 

understand the clear rationale for the change, it certainly will give 

more confidence to the position. 

So I will only ask the question one more time, because if the answer takes a—if the answer does not head in the direction of why 

the change then it will reinforce the fact that there is no clear answer that we can digest. 

Mr. GARRETT. Thanks again, Senator, and thanks for the time 

that we had—— 

31 

Senator SCOTT. I appreciate you taking the time. 

Mr. GARRETT. ——yeah, to come over and sit down and chat. 

So to put it numerically but not necessarily in this order—— 

Senator SCOTT. Yes, sir. 

Mr. GARRETT. ——I would say a couple of things have changed, 

again, not necessarily in this order. My role has changed. I am not 

in a legislative function. If I am confirmed, I would be in an executive function, and as such—and that is what I tried to make clear 

as best as I possibly can—I commit—and you say I am a sincere 

person, or you had said other nice words—when I do commit, I do 

commit sincerely to carry out the letter of the law as established 

by Congress. I was frustrated because that law was not being followed under the previous Administration. So the first point is my 

role has changed. 

The second point is—— 

Senator SCOTT. Stop. Let me ask you a question there. 

Mr. GARRETT. Yep. 

Senator SCOTT. Just to be clear. You will carry out the letter of 

the law and the spirit of intent—— 

Mr. GARRETT. Yeah. 

Senator SCOTT. ——of the law. 

Mr. GARRETT. Yes. 

Senator SCOTT. All right. Please continue. 

Mr. GARRETT. That is good. Yeah. That is—to carry out the letter 

of the law and the spirit of the law. The spirit of the law is overarching, which goes to the Chairman’s question, when he was over 

in Budget. 

Senator SCOTT. Van Hollen. 

Mr. GARRETT. Yeah. 

Senator SCOTT. OK. 

Mr. GARRETT. The spirit of the law is ultimately how do you create more jobs while protecting the American taxpayers, and that 

is—I am 100 percent in on that as well, and this goes to your—— 

Senator SCOTT. All right. 

Mr. GARRETT. ——to your question as well. That is why I used 

the word—I think when I met with you, if I may, I think this is 

a neat opportunity to be able to actually carry out those things to 

get to fruition, protect the taxpayers, which is a passionate concern 

for me, on the one hand, and also to carry out—— 

Senator SCOTT. I am not sure how long Chairman Crapo will give 

me extended time, very little. But, so, first, your position has 

changed because you role and responsibility as a legislator to the 

President of the Ex-Im Bank would clearly change your advocacy 

position? 

Mr. GARRETT. Yes. Yes. 

Senator SCOTT. Is there any other reason? 

Mr. GARRETT. And the second reason is what I have said at several different times, is that now we have a new Administration in 

town that actually helps facilitate this, which we have not had for 

X period of time. 

Senator SCOTT. Well, Mr. Chairman, Mr. Garrett, I will say that 

when you read the bylaws of the Bank, you realize that the president of the Bank is in charge of the business of the Bank, it is in 

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32 

fore the Bank as it relates to how the Bank will operate. It also 

has the power—the president has the power to basically hire, fire 

the employees, the attorney, and the agents. 

So the overarching question, as it relates to the change, is incredibly important—— 

Mr. GARRETT. Sure. 

Senator SCOTT. ——as it relates to our confidence in that change. 

Thank you, Mr. Chairman. 

Mr. GARRETT. And thank you, Senator. 

Chairman CRAPO. Thank you, Congressman. Senator Tester. 

Senator TESTER. Thank you, Mr. Chairman. I want to thank you 

all for being here today. You can answer my first question with a 

head nod. Do you want my vote for your confirmation? 

Let the record reflect that they all nodded yes. 

Chairman CRAPO. Six head nods. 

Senator TESTER. Mr. Garrett, we have not met before, and I appreciate you all putting yourselves in this position to be confirmed. 

And I am going to preface my questions by, look, we have all been 

behind this dais in one form or another, and some of us have been 

on the other side of the dais in one form or another, and we all 

know how to skate through questions and not answer them if we 

want. But I will tell you that you will not get my vote if you do 

not answer my questions. OK? 

I am going to start with you, Mr. Garrett. Do you believe that 

the Ex-Im Bank is corporate welfare? 

Mr. GARRETT. If Ex-Im is not properly operated, if it is not open 

and transparent, if it does not comply with the laws of 2015, it 

could be. 

Senator TESTER. Do you believe that, in the past, it has been corporate welfare? 

Mr. GARRETT. Yes. 

Senator TESTER. OK. And what changes—very briefly, because I 

do not want you to filibuster me—what changes would you make 

to ensure that it is not corporate welfare? 

Mr. GARRETT. OK. Very briefly. So at the very top of the list is— 

are the reforms in 2015. First is—not necessarily in this order, the 

ethics reforms, which goes to a couple of the questions that were 

raised today already, and I can go into more detail if you want. 

Senator TESTER. Yep. 

Mr. GARRETT. Second would be the risk management provisions 

that were added into the—— 

Senator TESTER. OK. 

Mr. GARRETT. ——the reform as well. 

Senator TESTER. Yep. 

Mr. GARRETT. And third, I guess would be in the area of the culture of the agency as well. The expression I—the term I borrowed, 

I think—— 

Senator TESTER. Yep. 

Mr. GARRETT. ——is a tier one organization—— 

Senator TESTER. Yep. 

Mr. GARRETT. ——so that each—is that satisfactory? 

Senator TESTER. OK. Good. Do you believe, Mr. Garrett, that a 

robust Ex-Im Bank is a necessary tool for job creation in this country? 

33 

Mr. GARRETT. So, again, thank you. Alluding to some of the other 

questions asked, more flesh to it, my answer is yes, it goes back 

to the term I use all the time is the toolbox expression, I guess. 

Senator TESTER. Yes, but there is a difference between an Ex-Im 

Bank and a robust Ex-Im Bank. There is a difference between an 

aggressive Ex-Im Bank that is out there looking for job-creating opportunities and a bank—— 

Mr. GARRETT. OK. 

Senator TESTER. ——that sits back. 

Mr. GARRETT. Gotcha. 

Senator TESTER. Thank you. 

Mr. GARRETT. Sorry. 

Senator TESTER. That would be yes? 

Mr. GARRETT. Yes. Yes. 

Senator TESTER. OK. Could you also—because you spoke earlier 

about reforms—could you give me—not now—— 

Mr. GARRETT. OK. 

Senator TESTER. ——before your confirmation, though, a list of 

the reforms that you would do if you are confirmed as chairman? 

Mr. GARRETT. Oh, certainly. 

Senator TESTER. Perfect. 

Let me ask you this. Your position, if confirmed—— 

Mr. GARRETT. Senator? 

Senator TESTER. Yes? 

Mr. GARRETT. If I am allowed, is there any particular area you 

wanted me to focus on? 

Senator TESTER. No. I just want a list, and you can write them 

as long as you want or you can make them as short as you want. 

Mr. GARRETT. OK. 

Senator TESTER. I appreciate that. 

You have a lot of powers as Chairman of this Committee, and I 

am not going to get into the fact that—because it has already been 

said by other folks—that this is a really, really important potential, 

incredibly good job creator, and that your past statements, by the 

way, have not been especially glowing toward the Ex-Im Bank. And 

so all of us that have concern about that—and there has been concern on both sides of the dais up here—makes us think that maybe 

there is another agenda out there that you might have, once you 

get confirmed, to try to upend the Ex-Im Bank. Regardless of what 

you say today, past history is past history, we learn from the history to go forward. 

So let me ask you this. The agenda is set exclusively by you on 

this Board. Would you agree today—and this may make the difference of whether I vote for you or not, by the way—that if two 

of your members came forward and said, ‘‘We want this agenda 

item on the agenda,’’ that you would agree to do that?’’ 

Mr. GARRETT. Thank you, Senator. I would have look into what 

the charter provided in that regard. I do believe that there are already some provisions in the charter that do allow for members of 

the Board to bring matters to before the Board. 

Senator TESTER. My understanding is that you control the agenda. Would you allow two members to come forth with the recommendation, and would you give them the common courtesy—if 

two members come through, maybe two Democrats, maybe two ReVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00037 Fmt 6633 Sfmt 6633 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
34 

publicans, maybe one of each—that you would put that agenda 

item on your agenda? 

Mr. GARRETT. Yes. Again, I would have to look into it. I believe 

that already, with regard to—— 

Senator TESTER. OK. 

Mr. GARRETT. ——the policy matters—— 

Senator TESTER. Let—— 

Mr. GARRETT. ——that is already the case with two members 

wanting to bring forth agenda items. 

Senator TESTER. OK, but if it was not, you would agree to it. 

Mr. GARRETT. If it was not, Senator—— 

Senator TESTER. It is a pretty simple question. I mean, these are 

good people. I mean, they are good stuff. Bachus was almost from 

Montana. I mean, these are good folks. 

[Laughter.] 

Senator TESTER. Yeah. 

Mr. BACHUS. Alberta. 

Mr. GARRETT. I will comply with the law, Senator. 

Senator TESTER. But that is—and I—we are all going to comply 

with the law. What I am asking, would you be open, if two people 

came forth to you with an agenda item, put it on the agenda, you 

would do that—and I will tell you why this is an important question for me, because it eliminates—I like all of them. All these guys 

have said, unequivocally, you have got your past baggage you have 

to take care of. That is done, done, but the truth is if you had an 

opportunity for two of these people to come forth to say ‘‘we want 

to talk about this potential deal,’’ that you would put it on the 

agenda, takes away any potential agenda opportunity that you 

might be able to manipulate this Board to go back to your past. 

Make any sense? So would you agree to it? You wanted my vote. 

Mr. GARRETT. It would be premature for me to make a decision 

without reviewing what the bylaws say and what the positions are. 

Thank you, Senator. 

Senator TESTER. No, no, no, no, no, no. Look, I—just 1 second, 

because I think I am the last one here besides you, Mr. Chairman. 

But I have got to tell you, Mr. Garrett, I have just got to tell you, 

I do not care if you are Democrat or Republican as long as you are 

willing to do the job that is in there. You have got a past history 

that you never really fully explained here today. You talked about 

role and you talked about a new Administration, but the fact is you 

made it clear, in a past life, that you did not like this outfit, and 

you have really not answered any of those questions. You have juggled it. Hell, I have done the same thing. It is not that big of a 

deal. Any of us can not answer questions. 

That is not how you get confirmed around here. And I would just 

tell you that when you have got four good people sitting up here 

who, by the way, I am going to vote for every one of you because 

you answered all my questions. I did not ask you any, but I asked 

them all. 

[Laughter.] 

Senator TESTER. But the truth is you have got four good people 

up here that are very capable. They are probably making the same 

amount of money you are on the Board. Why not give them the opportunity to have an influence on the thing, especially since you 

35 

have this past that is questionable. We are all going to follow the 

law. The question is, if you take the initiative to be able to empower the other members on this Board, it is going to make this 

Ex-Im Bank much more effective, and that is really the question. 

Mr. GARRETT. Thank you, Senator. 

Senator TESTER. But you will not answer it. Gosh, darn it. And 

people wonder why we do not like Washington, DC, Thank you all 

for being up here and I appreciate your willingness to be put 

through this process. 

Chairman CRAPO. Thank you, Senator, and that concludes the 

questioning portion of the hearing. I again thank each of you for 

coming and for your willingness to serve our country. 

For the Senators, all questions for the record—and you will probably receive further questions—all questions for the record are required to be submitted by Friday, as early as possible on Friday. 

And for our witnesses, I would ask your responses to those questions be made to us by Monday morning, so this may require some 

weekend work. 

Mr. Bachus. 

Mr. BACHUS. Senator Crapo, as part of my prepared remarks, I 

talked about my friendship with Congressman Garrett. We worked 

closely together. I know him to be a good Member and a man of 

principle. And, I do want to state that for the record. He is not only 

my former colleague but he is a friend. 

Chairman CRAPO. All right. I am sure he appreciates that and 

it is appropriate. 

I see a Senator come in. Are you interested in asking questions, 

Senator Cortez Masto? 

Senator CORTEZ MASTO. I am. Thank you. 

Chairman CRAPO. I will reopen the question-and-answer period 

for you. Sorry, guys. You thought you were being cut loose but we 

have got one more Senator. 

Senator CORTEZ MASTO. It will be easy, however. And I thank 

you so much, Mr. Chair. I noticed my clock is not working, so if 

you just give me a minute left to go—— 

Chairman CRAPO. I will give you a minute warning sign. 

Senator CORTEZ MASTO. Thank you. I appreciate that. And I 

apologize. I have two Committee hearings going at the same time. 

They are in completely different buildings so they are all over the 

place, so I am running back and forth. 

I appreciate the conversation today. First of all, let me just say 

thank you for all of your willingness to serve, or your service already, and welcome to your beautiful family. Thank you here for 

joining us. 

Let me start by saying this. I—listening to my colleagues talking 

with Mr. Garrett, and I do have concerns about, Mr. Garrett, your 

position, but I do not know whether it is going to do me any good 

to even question you, because clearly you already have canned answers and you are not willing to let us really know why you are 

here, other than what I believe is to implode the Ex-Im Bank, and 

I cannot support that. 

So let me get to the rest of you, because many of you have sat 

there, not been able to answer some questions. And Mr. Greenblatt, 

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ney General of Nevada for 8 years, one of the things we did is really look to ensure against waste and fraud in our Medicaid system. 

What are your biggest challenges or barriers that you see as the 

IG moving forward, and what you need to do? 

Mr. GREENBLATT. Certainly. The number one challenge that we 

are facing, if confirmed, would be personnel, frankly, size. That is 

something, if you look at our audit team, 80 to 90 percent of our 

audits are statutorily mandated and have nothing to do with bank 

operations. For example, looking at purchase cards, which are the 

Government credit cards used to by toner, paper, we are obligated 

to do an audit every year on the use of those credit cards. That has 

nothing to do with the Bank. So that is 80 to 90 percent of our 

audit staff every year is taken up with that. 

Senator CORTEZ MASTO. OK. 

Mr. GREENBLATT. Our investigations team is quite small, especially if look at the $30 billion in transactions that are coming 

down the pike, if the Board is confirmed. Those have been major 

challenges. 

Senator CORTEZ MASTO. OK. And so for the Board members that, 

once elected, are you—just yes or no—are you committed to giving 

the IG all the resources and working with him to give him the resources he needs to be effective in his job? 

Ms. SLACIK. Yes. 

Ms. PRYOR. Yes. 

Mr. BACHUS. Let me say this. There is a very large IG presence 

at the Bank. It is something like 20 or 25 IGs, staffers, and investigators. 

Mr. GREENBLATT. Twenty-five personnel. 

Senator CORTEZ MASTO. OK. 

Mr. BACHUS. That is a very high ratio compared with most agencies. Most agencies have 1 IG staff out of 400 or 1 out of 500. And 

I guess what Mr. Greenblatt said some of the investigations have 

nothing to do, really, with the Bank’s business. 

And I want to respond to one other thing. There was a bank employee, several years ago, who was caught doing a criminal activity. 

That was exposed within the Bank by his fellow employees. He was 

prosecuted by the IGs and was turned over to the Justice Department. It was found internally and prosecuted. And I know one of 

the Senators mentioned earlier about the fraudulent activity at the 

Bank. But, you know, there is fraud in every agency. 

Senator CORTEZ MASTO. Mm-hmm. 

Mr. BACHUS. It is unfortunate but this agency had many people 

who have tried to do fraud at the Bank. But the fraud at the Bank 

has been exposed, and that is almost a good thing that it was exposed. 

Senator CORTEZ MASTO. Mm-hmm. 

Mr. BACHUS. And the fraud was exposed by people in the Bank. 

Senator CORTEZ MASTO. Thank you. I appreciate that. 

Chairman CRAPO. One minute. 

Ms. REED. Good afternoon, Senator. Yes, absolutely, I do support 

Inspector General. I worked in Congress for 7 years doing oversight 

and investigations and I see the value of that. 

Senator CORTEZ MASTO. Thank you. And let me—since I have 1 

minute left, let me just say this. The Ex-Im Bank is necessary. I 

37 

come from Nevada, and I am a supporter of it. It is important and 

necessary to expand and diversify just the State of Nevada and our 

economy. The Export-Import Bank supports 23 Nevada exporters, 

16 of which are small businesses. One of them I had the opportunity to meet with when I was home in August, which is Click 

Bond. Click Bond designs and manufactures fastening technology 

for our State in the art of aviation technology. They have operated 

in Carson City for more than 30 years. They employ 350 people 

and 150 people around the world, because of the support of the ExIm Bank in Nevada. 

Ray Bacon, who is the Executive Director of our Nevada Manufacturers Association, supports it, and just recently he wrote in the 

Reno Gazette-Journal a piece, and what he said in there is ‘‘manufacturing workers in Nevada and across the United States should 

be worried about the nominee to lead to the Ex-Im Bank, ex-Congressman Scott Garrett of New Jersey. Garrett made it his mission 

in Congress to destroy the Ex-Im Bank. He voted against reauthorization of the agency more than a dozen times, and urged his colleagues to use the opportunity to put the Ex-Im Bank ’out of business’.’’ This is from Nevada Manufacturers Association. This is why 

many of us have concerns with Mr. Garrett leading the Ex-Im 

Bank and why I cannot support it. 

But thank you all, again, for being here today, and your comments—answers to our questions. 

Chairman CRAPO. Thank you, and that does conclude the questioning period. I have already given the final instructions and so 

that will conclude our hearing. 

Let me just say, again, thank you to all of you for your participation here today, thank you in advance for your prompt response to 

questions you may receive, and thank you for your willingness to 

serve. 

This hearing is adjourned. 

[Whereupon, at 12:01 p.m., the hearing was adjourned.] 

[Prepared statements, biographical sketches of nominees, responses to written questions, and additional material supplied for 

the record follow:] 

38 

PREPARED STATEMENT OF SCOTT GARRETT 

TO BE PRESIDENT OF THE EXPORT-IMPORT BANK

NOVEMBER 1, 2017 

Chairman Crapo, Ranking Member Brown, Members of the Committee; 

I would like to begin by thanking the Members of this Committee for this opportunity to be here today, and also to thank each of you who has given your time to 

sit down and meet with me. I know you keep quite busy schedules, and I very much 

appreciate sharing your time, hearing to your thoughts, and listening to your wise 

advice. 

I want to thank the President for his nomination. I am honored to be before you 

as a nominee, and humbled to be considered for the position of the President of the 

Export-Import Bank. 

I also want to take a moment to thank the Vice President as well; for his time 

and effort and support. It was my pleasure and honor to have worked alongside Vice 

President Pence for a number of years in Congress, on a variety of issues and matters, and it is great to see that he continues to serve his country as our Vice President. And so I am also grateful to him for taking the time to have been as supportive as he has been of my nomination. 

And finally, and most importantly, I would like to say thank you to my family— 

those that could be with me today, and those who could not for various reasons. 

As it is said, ‘‘Children are a gift from the Lord’’, and rightfully so. I have been 

blessed. 

I have been blessed with my two daughters. Starting with my youngest who is 

here with me today. I am very proud of her and delighted that she was able to take 

time out of work to be with us today. My oldest daughter is a teacher and her husband—my new son-in-law—who is pursuing his PhD, are not able to be here with 

us today. I am very proud of them as well. 

And of course my wife—it is said, ‘‘an excellent wife, who can find? She is more 

precious than jewels . . . ’’ and such is the person who has been my partner now 

for 33 years, including through my years in Congress, and now the many months 

of this nomination process . . . and I am blessed that she has been my partner all 

this time, and is now here to be with me during this hearing today. 

As I have said. I am honored to be before this Committee as the nominee to lead 

the Export-Import Bank, and hope to gain your support. 

Let me be crystal clear on this point: If I am confirmed, the Export-Import bank 

will continue to fully operate, point blank. It will continue to approve the many 

loans that support our American manufacturers’ ability to export their products. 

I know that many of you here fully support the Export-Import bank’s mission, and 

represent constituents and businesses that are directly impacted by the availability 

of financing from the Bank. So, let me again be clear, and leave no doubt in anyone’s mind; that I commit to and will carry out the President’s vision regarding ExIm: a fully functioning bank. 

I fully support the President’s pro-growth agenda. He has laid out an agenda to 

create jobs and expand the American economy. 

I completely agree that robust U.S. exports are critical to the vitality of the U.S. 

manufacturing sector. 

And furthermore, it’s my belief that a robust manufacturing sector is essential to 

a strong and vibrant economy. 

Strong manufacturing goes hand and hand with the President’s agenda of increasing more and better jobs, for all Americans. This is a mission that I am honored 

to have been selected to advance. 

Furthermore, it is absolutely vital that U.S. companies have a level playing field 

to compete in the world market with their foreign competitors. 

As the former Chairman of the House Financial Service Subcommittee on Capital 

Markets, I have an understanding of finance and the importance of capital markets 

to the creation of American manufacturing jobs. 

So, it will be my goal, should I be confirmed, to fully and strongly advance this 

agenda, and to ensure that the Ex-Im bank operates as intended by the Law, as 

set forth by you—Senators and Members of the Banking Committee. 

Let me repeat that—that the Ex-Im bank operates as intended by the Law, as 

set forth by you—the legislators. I want to work with you to have the Bank operate 

in a fair, open and transparent manner so that we together can achieve the President’s objective of creating more jobs, good paying jobs, good American jobs. If confirmed by this body, I will carry out this mission to the very best of my ability. 

Finally, having served in Congress, I very much appreciate the constitutional responsibilities of the legislative branch. If confirmed, I look forward to an open and 

39 

transparent dialogue with Congress, and this Committee specifically, and with each 

of you. 

In short, I am committed to working with you to promote the creation of American 

jobs, provide the maximum value to the American taxpayer, and ensure that ExIm operates fully. 

It’s an honor to be here today, and I look forward to taking your questions. 

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PREPARED STATEMENT OF KIMBERLY A. REED 

TO BE FIRST VICE PRESIDENT OF THE EXPORT-IMPORT BANK

NOVEMBER 1, 2017 

Chairman Crapo, Ranking Member Brown, and Members of the Committee, thank 

you for this opportunity to appear before you today. I am honored to be the President’s nominee to serve as First Vice President of the Export-Import Bank of the 

United States (Bank), a position that includes being Vice Chairman of the Bank’s 

Board of Directors. As a West Virginian, I am grateful to Senators Shelley Moore 

Capito and Joe Manchin for their support. 

I am pleased to introduce my father Terry and sister Meghan. My father taught 

me the importance of public service and helping others. My mother, Janet Logue 

Reed, passed when I was nine years old, but I know that she is with us. My brother 

Mark, sister Ashley, and brother-in-law Jeremy, a Purple Heart recipient, are 

watching online. 

My interest in public service was sparked when I was 4 years old and my father 

was a counsel to the then newly founded Republican Study Committee. This is when 

I first met former House Ways and Means Chairman Bill Archer and his Chief of 

Staff Don Carlson. They have supported me my whole life, and I am deeply honored 

to have them join us today. 

When it comes to helping others, I serve on the Alzheimer’s Association National 

Board of Directors. This disease impacts five million Americans and fifteen million 

unpaid caregivers, and my thanks go to you and Members of Congress, as well as 

advocates watching today, who take action to end our Nation’s most expensive disease. 

I appreciated the opportunity to meet many of you to discuss your hopes for the 

Bank. Creating good American jobs is a top priority for the President, as I am sure 

it is for all of you. If confirmed, I will deliver on this priority. We are on the cusp 

of an American renaissance in manufacturing, including for small and new entry 

companies. 

I am committed to serving our Nation, and, if confirmed, look forward to bringing 

two decades of bi-partisan experience to my work at the Bank, which has more than 

400 dedicated career professionals. Throughout my career, I have engaged not only 

with CEOs and world leaders, but also with thousands of constituents and small 

businesses in your States. 

As Director of the Treasury Department’s Community Development Financial Institutions Fund under President George W. Bush, I made job creation in distressed 

communities a key priority. I oversaw efforts to provide $4 billion in financing—in 

the forms of New Markets Tax Credits, loans, and grants—to financial institutions 

and economic development groups that were investing in our Nation’s rural, Native 

American, and urban communities. 

As Counsel to three Congressional Committees, I focused on oversight and reform 

to improve our Federal agencies. I deeply appreciate the valuable role Congress 

plays in oversight of Federal programs, including the Bank, and the importance of 

faithfully executing all our laws consistent with the intent of Congress. 

As Senior Advisor to U.S. Treasury Secretaries John Snow and Henry Paulson, 

I helped advance our Nation’s economic program. I know the value of working as 

part of an Administration’s team and making sure Congress and the American people are fully informed about the President’s agenda. 

Most recently, as President of the International Food Information Council Foundation, I worked with the U.S. Departments of Agriculture and State in numerous 

emerging market countries around the world to increase acceptance of U.S. exports. 

The Bank has become an important source of funding for small businesses and 

an avenue for job creation. Nonetheless, there are needed reforms to ensure that 

taxpayer dollars are protected from waste and fraud and that Americans are obtaining the best value. 

With respect to the activities of the Bank, my friend, Chairman Archer, taught 

me that any reform must not occur at the expense of our national interests. He 

warned against unilateral disarmament in a fiercely competitive global economy. I 

share his concerns and would never advocate to place American exporters and workers in a worse position than our foreign counterparts. There are now 95 foreign Export Credit Agencies—including eleven acknowledged in the past year—many of 

which are used by foreign Governments attempting to move U.S. jobs and business 

revenue to their countries. 

In West Virginia, my grandfather taught me the importance of having the necessary tools in life. As an eighth grader during the Great Depression, he launched 

Reed’s Dairy. When private sector financing was not available, the Federal Land 

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Bank filled the gap, and the dairy became one of the most successful small enterprises in the State. My grandfather farmed for the rest of his life and was meticulous with his toolbox. The United States must have the right tools—including a fully 

functioning Export-Import Bank—in our toolbox to be successful in the global marketplace. 

But, those tools need to be constantly repaired and reformed. I am especially interested in making sure that small- and medium-enterprises, just the kind of businesses that I am so familiar with in West Virginia, have full access to the programs 

authorized by Congress. 

If confirmed, I will bring a fresh set of eyes to the Bank to strengthen U.S. competitiveness and bring better value to the taxpayer, as the opportunity for Americans to create and export has never been brighter. 

Thank you for your consideration. I would be pleased to answer any questions. 

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PREPARED STATEMENT OF SPENCER BACHUS III 

TO BE A MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK; REAPPOINTMENT AS A MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT

BANK

NOVEMBER 1, 2017 

Chairman Crapo, Ranking Member Brown, and distinguished Members of the 

Committee, thank you for considering my nomination to be a member of the Board 

of Directors of the Export-Import Bank of the United States. I also appreciate very 

much the recent opportunities we had to discuss my nomination and your concerns. 

It is an honor to be selected by President Trump. I welcome the opportunity, if 

confirmed, to work for American workers and promote U.S. business interests and 

exports. 

Today, I am pleased to have my wife and best friend, Linda, join me. During my 

entire public service, she has been by my side encouraging me along the way and 

making me a better person. 

There is a familiar phrase from the 1967 movie ‘‘Cool Hand Luke’’ that somewhat 

inarticulately says, ‘‘What we’ve got here is failure to communicate.’’ I think that 

may sum up the current situation of the Export-Import Bank. After being nominated to the Ex-Im Board by President Trump in April, it didn’t take me long to 

be reminded that there are serious and strongly held differences between what the 

supporters of Ex-Im and its detractors believe about its mission, importance to the 

economy, and indeed, the need for its existence. 

That is particularly disturbing since the Export-Import Bank has a proud history 

including financing the Burma Road during WWII and the Marshall Plan under 

President Eisenhower. Furthermore, Ex-Im has returned a profit to the taxpayers 

since the Reagan Administration. Nonetheless, its more recent lack of responsiveness to concerns expressed by many in the Legislative branch has created a hostile 

and adversarial relationship that has brought the Bank’s operations to a virtual 

standstill: and, this is seriously constraining the competitiveness of U.S. manufacturers and other businesses in the global economy. 

Unfortunately the timing couldn’t be worse. We are increasingly shut out of a 

large portion of the world marketplace because of an unleveled playing field. And 

that is extraordinarily regrettable at a time when markets are increasingly global. 

When America was the world’s leading exporter, the American dream of the greatest 

generation was home ownership. Today, I suggest, that dream is a good job. 

The failure of the Bank to adequately communicate with Congress and the American public has resulted in bad blood, outright hostility, and ultimately, the fundamental loss of confidence in the institution. 

Allowing this situation to continue would be a calamity, not just for the Bank, 

but for our whole country and its place in the global economy. If the failure to communicate involving Ex-Im isn’t resolved, it won’t be at the expense of the fictional 

character Cool Hand Luke played by Paul Newman. It will be at the expense of the 

jobs of thousands of American workers, present and future, as export opportunities 

both large and small are scuttled and lost. Sadly with those lost jobs will go the 

dreams of a better life for many American families. 

The duties of individual Ex-Im Board members are not defined in the Bank’s 

charter. It has been the practice for each Board member to determine how they can 

best serve the mission of the Bank to create jobs and spur economic growth through 

greater support of exports. If I am confirmed as a member of the Ex-Im Board, improving the communication between the Bank and both Congress and the Bank’s 

customers, big and small, present and prospective, will be priority one for me. I’ve 

heard legitimate concerns that Ex-Im’s efforts to support small businesses grow 

their workforce by increasing their exports have fallen short. We must better reach 

and serve American’s smaller employers and their workers. Improving Ex-Im’s small 

business products to ensure small business have a first class experience will be a 

critical first step toward fulfilling it’s mission to level the playing field for America’s 

best job creators. Bringing Ex-Im’s technology platforms into the 21st Century will 

aid in protecting the U.S. taxpayer against potential external fraud attempts. 

During my tenure on the House Financial Services Committee, I helped guide the 

passage of legislation reforming many of the Ex-Im operational requirements. I look 

forward to being able to work with the nominee for Chairman of the Bank, my 

former colleague and good friend Scott Garrett, and the other Board members to restore the confidence of Congress and others in this vital institution. A first step in 

that direction will be to ensure better communications with Congress. 

Please permit me to leave you with one final thought as I conclude my remarks. 

As members of Congress, you and I have had the immense pleasure and honor of 

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meeting many American workers. What I have heard from those workers is that, 

if given a chance to compete on a level playing field, they will compete with workers 

anywhere else in the world and they will produce the best product at the best price. 

I truly believe that and look forward to working with you at the Export-Import 

Bank to make that a reality. 

If I am confirmed by the Senate, I pledge to work with you alongside my fellow 

Board members to carry out and pursue the mission of Ex-Im as written in its charter. Mr. Chairman, Ranking Member Brown, and Members of the Committee, I 

truly appreciate your time today and consideration of my nomination. I look forward 

to answering any questions you may have. 

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PREPARED STATEMENT OF JUDITH DELZOPPO PRYOR 

TO BE A MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK

NOVEMBER 1, 2017 

Mr. Chairman, Ranking Member Brown, Members of the Committee, I am honored to appear before you today as a nominee for the Board of Directors of the Export-Import Bank of the United States. I am deeply grateful to President Trump for 

nominating me and to Senator Schumer for his recommendation and support. If confirmed, I pledge to carry out Ex-Im’s mission with honor and integrity. I would also 

like to thank Ranking Member Brown, Senator Heitkamp, and their staff for the 

trust they have placed in me, and for their support and encouragement. 

And thank you, to all the Members of the Banking Committee for your commitment to move this process forward. I have met with many of you and your staff to 

discuss your priorities related to the Bank and how we can ensure Ex-Im continues 

to support American jobs by increasing our exports of goods and services. If confirmed, I look forward to further conversations about how we can work together to 

help American businesses succeed in the international marketplace. 

Last, I would like to introduce some of my family members who are with me 

today. My husband David Pryor, Jr. and my brother-in-law Mark Pryor—I married 

into an Arkansas family with a long history of public service and it seems some of 

that has rubbed off on me. Our son Hampton Pryor is with me today too. Every day, 

he reminds me to persevere, no matter the challenges life delivers. My parents have 

been gone awhile now, but today would have been Mother’s 90th birthday. Happy 

Birthday Mom. My brother Joseph DelZoppo and my niece Christine could not be 

here today, but I am grateful for their love and support. 

I am a proud product of Ohio public schools and graduated from Bowling Green 

State University. My brother and I are the first generation of our family to attend 

college. 

From the American dream of my grandparents, who immigrated to the United 

States at the turn of the last century and settled in Cleveland to work in the factories; to the boom of the post-World War II years that my parents enjoyed; to my 

youth, and the unfortunate decline of manufacturing in the Factory Belt of the Midwest—now the Rust Belt—the need for the Export-Import Bank of the United States 

is even more relevant today. 

If confirmed, my top priority will be to focus on Ex-Im’s mission of supporting 

American jobs and growing American exports, while protecting taxpayer dollars. 

With over 95 percent of the world’s consumers living outside U.S. borders, there are 

so many opportunities for American businesses to grow their customer base abroad. 

Indeed, I look forward to contributing to this growth, particularly by increasing support for small businesses, but also by ensuring that businesses of all sizes are able 

to compete fairly in the global marketplace. There are 95 other export credit agencies in the world today, getting the Export-Import Bank of the United States fully 

up and running is imperative to helping American manufacturers grow their exports. 

As an accomplished professional with 25 years of international experience in the 

private sector, coupled with 61⁄2 years of Government service at the Overseas Private Investment Corporation (OPIC), I believe I would bring to Ex-Im Bank, a 

unique set of work and life experiences. 

I spent most of my career working for American businesses with an international 

presence—from Asia to Africa, the Middle East, and western Europe, whether international start-ups, Fortune 100s, or small businesses—my private sector work has 

focused on the high-tech, broadcast, telecom and satellite communications industries. With decades of experience in corporate communications, marketing and sales, 

branding, messaging, and business development, I have been a trusted tone setter 

and caretaker of an organization’s public reputation. 

Most of my private sector work took me to many overseas locations—mostly 

emerging markets that were new to me. At WorldSpace and other companies where 

I worked, I was fortunate to have local staff in country, and on whom I could rely 

to help navigate the activities and undertakings required of me. I remember how 

daunting it seemed. A new place, with different customs, languages, rules and regulations. This is a reality for many U.S. small businesses wishing to export into foreign markets. They are trying to figure out what they need to know, and do, to get 

their product from Point A to Point B. I recognize how difficult this can be. 

Most recently, I was proud to serve during the Obama administration, at the 

Overseas Private Investment Corporation, as Vice President of External Affairs and 

as a member of OPIC’s Leadership Team. This experience ingrained in me a sense 

of duty to ensure taxpayer dollars are protected and Government programs are 

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managed with integrity and efficiency. My department wore multiple hats, including 

responsibility for the Agency’s relationship with Congress, the media, and the general public. We built and launched a more customer-friendly interactive website, 

and greatly expanded engagement and information exchange with Congress and 

OPIC’s customers. I also held a seat on the Investment Committee weighing in on 

all project commitments over $20 million, and was responsible for overseeing outreach to the U.S. small business community. This role made me realize that we 

should be doing so much more to support America’s small businesses. Here and everywhere, they are the engine of economic growth. 

In fact, during my time at OPIC, my department expanded outreach efforts to the 

small business community by doubling the number of educational workshops hosted 

throughout the United States. To date, these workshops have educated over 4,000 

small businesses—including minority and women-owned—about the services available to them through OPIC and other Federal Government agencies including the 

U.S. Export-Import Bank, U.S. Trade and Development Agency, and the Small Business Administration. 

Last year alone, our Export-Import Bank supported over 2,600 small businesses, 

and has an 80-year track record of supporting U.S. jobs and growing exports by 

helping manufacturers of all sizes. Ex-Im can help take the fear out of exporting 

for smaller companies and it can ensure a level playing field, so all American manufacturers are able to compete fairly in the global marketplace. 

If I am confirmed to the Board of Directors, I strongly believe my experience and 

background, paired with the new initiatives enacted by Congress in the 2015 Charter, will help to modernize the Bank, and keep its mission current and relevant in 

today’s changing times. I look forward to working with the employees at the Bank 

on many items, always with one objective in mind: to support and sustain American 

jobs through exports. If confirmed, I will also remain vigilant in protecting taxpayer 

dollars. To this end, I look forward to working with my fellow board nominees, the 

nominee for Inspector General, and the entirety of Ex-Im’s management and staff. 

Mr. Chairman, Ranking Member Brown, Members of the Committee, thank you 

again for the opportunity to appear before you today as I respectfully ask for your 

support to serve on the Board of Directors of the Export-Import Bank of the United 

States. If confirmed, I also look forward to working with you and the business community in your States and throughout the country, to help raise additional awareness of Ex-Im’s financing products for small businesses and community banks. 

Thank you and I am happy to answer any questions you may have. 

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PREPARED STATEMENT OF CLAUDIA SLACIK 

TO BE A MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK; REAPPOINTMENT AS A MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT

BANK

NOVEMBER 1, 2017 

Chairman Crapo, Ranking Member Brown, and distinguished Members of this 

Committee, it is an honor to appear before you today. I am grateful to be nominated 

by the President to be a member of the Board of Directors of the Export-Import 

Bank, and if confirmed, I would be honored to serve and do all I can in this capacity 

to support jobs for my fellow citizens. 

Let me start by thanking the Members of this Committee who I had the pleasure 

of meeting before today’s hearing. I appreciated all the comments you had about the 

Bank. For those of you whom I did not yet meet, I look forward to having similar 

conversations with you if confirmed. Similarly, if confirmed, I look forward to working with all of you and your staffs on any issues you have related to the Bank. 

Before presenting my background, let me first introduce you to the members of 

my family who are here today. First, my spouse Susan Davis, who was born and 

raised in Louisiana and who has dedicated most of her professional life in service 

to impoverished people in the neediest parts of the world. 

And second, my brother, Kurt Slacik who was born in New York State and who 

is now a senior executive at a steel mill in Pennsylvania. 

As for myself, I was born in upstate New York and grew up there as well as in 

New Jersey, Illinois, Connecticut, California, and Massachusetts. I also spent 5 

years in Brussels, Belgium where my father was a senior executive for a major U.S. 

company. I am a product of both public and parochial schools. I received my undergraduate degree from Smith College and my MBA from New York University. While 

my parents are both deceased, I have four siblings and five smart and beautiful 

nieces. My paternal grandparents immigrated to the United States from Czechoslovakia just before the First World War and set up a small meat packing business 

in upstate New York. My maternal grandfather was a coal miner in Scranton, Pennsylvania. 

I have spent the last 35 years in the U.S. financial services industry mostly as 

a commercial lender to corporations and an international trade finance specialist. 

I also have experience in corporate restructurings, risk management, and general 

management. I have served on the boards of several companies, both public and private, with a specialty serving on their Audit Committees, in addition to service on 

several nonprofit boards. 

My most recent professional position was as the Chief Banking Officer at the Export-Import Bank from 2013 through 2016. I learned first hand of the importance 

of the Bank to American exporters and the workers they employ. By leveling the 

playing field for large businesses and assuming risk for smaller companies, Ex-Im 

enables American businesses to successfully compete on the global stage where foreign Governments do the same for their national companies. The Bank thereby accomplishes its ultimate mission of helping our businesses grow and supporting jobs 

in the United States—jobs that pay nearly 20 percent more than other jobs of a 

comparable nature involving products and services consumed here at home. 

During my tenure as the Bank’s Chief Banking Officer, the staff and I analyzed 

billions of dollars of transactions for small, medium and large companies which supported hundreds of thousands of jobs. My responsibilities included expanding the 

public’s awareness of the Bank, and overseeing the due diligence and underwriting 

of all transactions greater than $10 million before they were presented to the Board. 

I also ensured that the Board, which has the ultimate authority to approve transactions larger than $10 million, understood the structures and risks of the transactions brought before them so they could determine reasonable assurance of repayment. My close working relationship with the Board also allowed me to gain a keen 

appreciation for the role of the Board and the responsibilities of Board members. 

I think my extensive experience as a commercial lender would serve me well as 

a Board member. During those years, I acquired skills in credit and risk analysis, 

as well as how the international credit markets operate. I also obtained a keen understanding of reputation and character risk. Needless to say, these skills are critical for members to possess in order to keep the Bank’s loan losses and default rate 

to a minimum while at the same time helping businesses and workers as much as 

possible. 

If confirmed as a member of the Board of Directors of the Export-Import Bank, 

I pledge to vigorously carry out the mission of the Bank. I further pledge to diliVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00147 Fmt 6621 Sfmt 6621 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
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gently work with all Members of this Committee to address their concerns and keep 

them informed of the Bank’s activities. 

Mr. Chairman, Senator Brown and Members of the Committee, thank you for 

your time and consideration of my nomination. I look forward to answering any 

questions you may have. 

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PREPARED STATEMENT OF MARK GREENBLATT 

TO BE INSPECTOR GENERAL OF THE EXPORT-IMPORT BANK

NOVEMBER 1, 2017 

Thank you, Chairman Crapo, Ranking Member Brown, and Members of the Committee. It is an honor to appear before you as the nominee to serve as the Inspector 

General (IG) of the Export-Import Bank of the United States (Ex-Im). 

At the outset, I would like to thank my family, friends, and colleagues for their 

support. In particular, I would like to recognize my parents, my late mother Marian 

and my father Mickey, who instilled in me qualities like honesty, integrity, and perseverance, and whose hard work has afforded me wonderful opportunities; my wife 

Jana who has been unfailingly supportive for the past 17 years; and my two boys, 

Micah and Levi, who keep me grounded and serve as rambunctious reminders of 

why we are all here: to improve our country for future generations. 

I come from a long line of small-business owners—from my grandparents, who 

owned a small deli in West Philadelphia, to my father, who started three successful 

businesses and used our home as collateral for a loan to keep a business afloat in 

tough times, to both of my brothers, one of whom runs a manufacturing company 

that exports products all around the world from a small factory right up the road 

in Baltimore. 

As you can see, small business is in my blood. 

Unfortunately, I was the black sheep who went to law school. The good news is 

that I followed in my mother’s footsteps and dedicated my career to public service. 

I have spent the past 14 years conducting Government oversight, investigating 

waste, fraud, and abuse in Government programs. 

I started my public service here at the U.S. Senate, in the Permanent Subcommittee on Investigations (PSI). During my PSI tenure, I led an investigative 

staff through numerous complex, bipartisan inquiries that identified waste and 

abuses in important programs such as Medicare and the United Nations. For instance, I led the Subcommittee’s investigation into the United Nations’ Oil-for-Food 

Program, a $64 billion operation that was plagued with corruption across the globe. 

After 51⁄2 years at Senate investigations, I joined the special investigations unit 

of the Department of Justice OIG. At the DOJ OIG, I led several investigations into 

sensitive matters, such as allegations of widespread politicization and misconduct 

in DOJ’s Voting Section and nepotism, misuse of office, conflict of interest, and 

whistleblower retaliation by senior DOJ officials. 

In 2014, after more than 5 years at DOJ OIG, I moved to the Department of Commerce OIG, where I lead the OIG’s Office of Investigations (OI) as the Assistant Inspector General for Investigations. With the help of the highly talented OI leadership team and staff, I spearheaded a major revitalization of the division, restoring 

its integrity and professionalism and creating a culture of ownership and success. 

I am pleased to report that we have achieved considerable results in a short time, 

such as securing several significant indictments and convictions that resulted in 

millions of dollars in ill-gotten gains coming back to the U.S. Treasury; issuing more 

than a dozen public investigative reports that identified senior-level misconduct and 

tens of millions of dollars in actual or potential waste, fraud, and abuse; establishing a robust digital analysis program; developing a special investigations unit 

that focuses on highly sensitive matters, such as allegations of ethical violations and 

senior-level misconduct; and implementing a successful Whistleblower Protection 

Ombudsperson program. 

It is the nexus between these two threads—my experience in Government oversight, on the one hand, and my family’s background in small business, on the 

other—that makes me excited at the possibility of becoming the Ex-Im Inspector 

General. I appreciate Ex-Im’s important mission of supporting American jobs by facilitating the export of goods and services. The Inspector General plays a crucial 

role, by providing objective oversight to promote integrity, economy, efficiency, and 

effectiveness in Ex-Im’s operations. If confirmed, I would strive to be an agent of 

positive change, focusing on eliminating fraud, waste, and abuse and identifying 

problems and making recommendations for corrective actions to Ex-Im’s leadership. 

I understand the critical role that independence plays in an Inspector General’s 

mission. The core principles of integrity, objectivity, fairness, and accountability 

must guide an IG’s judgment and decision-making. I am fortunate to have served 

under the leadership of several strong role models, including several stalwarts in 

the Inspector General community, on how to run probing, objective investigations 

that sought to uncover the truth and effect positive change. 

With that in mind, if I am confirmed, I intend to oversee an office that conducts 

audits and evaluations in a thorough and comprehensive manner; pursues investigaVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00162 Fmt 6621 Sfmt 6621 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
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tions aggressively and follows the facts wherever they may lead; issues fair and impartial reports; and makes recommendations to improve the Bank’s programs. 

Thankfully, all of my interactions with the Ex-Im OIG leadership and staff indicate 

that they share that vision and operate in that manner now. 

I believe that an OIG can fulfill its responsibility to provide independent oversight, while simultaneously maintaining a constructive relationship with the agency. 

When I arrived at the Commerce Department, I dedicated considerable energy to 

establishing and maintaining a healthy relationship with the Department. Our oversight is probative, insightful, and independent, which has included telling hard 

truths as necessary, but it is built on a foundation of good faith and the shared goal 

of improving the agency’s results for the benefit of the American taxpayer. I look 

forward to developing that same type of healthy and productive relationship with 

Ex-Im’s Board and staff. 

I also appreciate the importance of maintaining strong relations with this Committee and other Ex-Im stakeholders in Congress. In light of my tenure conducting 

oversight for the Senate, the significance of that relationship resonates with me on 

a personal level. With that in mind, if confirmed, I will maintain direct and frank 

communications with this Committee and other stakeholders in Congress. 

In closing, I understand the challenges ahead and look forward to the opportunity 

to serve the American people in this new role. I thank the Committee for its consideration of my nomination and, if confirmed, I will work with you to achieve our common goals. 

Thank you, and I would be pleased to respond to any questions that you might 

have. 

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RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM SCOTT GARRETT 

Q.1. Statement 1—‘‘I joined fellow members of the House Freedom 

Caucus and other concerned lawmakers at a press conference this 

morning to urge Congress to let the Export-Import Bank expire on 

June 30.’’ (Facebook, 5/19/2015) 

With regard to Statement 1 above do you feel any regret for calling for the Export-Import Bank to be shut down in May of 2015? 

A.1. My prior comments about Ex-Im were made in the context of 

some egregious instances of waste, fraud, and abuse. The Bank has 

made progress on this front since I made the comments, and, if 

confirmed, I look forward to ensuring that this trend continues. 

Q.2. In May of 2015, why did you believe it was necessary to shut 

down the Export-Import Bank? Please offer a detailed rationale for 

your thinking at that time. 

A.2. As a Member of Congress, I believe in protecting Americans 

and being a steward of American taxpayers’ dollars funding the 

Government. In May of 2015, I was under the belief that there 

were significant instances of waste, fraud, and abuse at the Bank 

which in my opinion would not be a good use of American taxpayers’ dollars. The Bank has made progress on this front since I 

made the comments, and, if confirmed, I look forward to ensuring 

that this trend continues. 

Q.3. Do you regret participating in the press conference on May 19, 

2015, and calling for the Export-Import Bank to be shut down 

while speaking from a podium bearing the Twitter hashtag 

‘‘#EndExim’’? 

A.3. My prior comments about Ex-Im were made in the context of 

some egregious instances of waste, fraud, and abuse. The Bank has 

made progress on this front since I made the comments, and, if 

confirmed, I look forward to ensuring that this trend continues. 

Q.4. Statement 2—‘‘The proposal before us is the resurrection of a 

bank that embodies the corruption of the free enterprise system. 

Yes, we have the opportunity today to save capitalism from cronyism. Yes, we have the opportunity to protect the American taxpayer and the American Dream and to preserve free enterprise. We 

have the opportunity today to keep the Export-Import Bank out of 

business. We should take each of those opportunities.’’ (Floor statement, 10/27/15) 

With regard to Statement 2 above, do you feel any regret for calling for the Export-Import Bank to remain shut down in October of 

2015? 

A.4. As a Member of Congress, I believe in protecting Americans 

and being a steward of American taxpayers’ dollars funding the 

Government. In 2015, I was under the belief that there were significant instances of waste, fraud, and abuse at the Bank which 

would not be a good use of American taxpayers’ dollars. The Bank 

has made progress on this front since I made the comments, and, 

if confirmed, I look forward to ensuring that this trend continues. 

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Q.5. In October of 2015, why did you believe it was necessary to 

keep the Export-Import Bank shut down? Please offer a detailed 

rationale for your thinking at that time. 

A.5. As a Member of Congress, I believe in protecting Americans 

and being a steward of American taxpayers’ dollars funding the 

Government. In 2015, I was under the belief that there were significant instances of waste, fraud, and abuse at the Bank which 

would not be a good use of American taxpayers’ dollars. The Bank 

has made progress on this front since I made the comments, and, 

if confirmed, I look forward to ensuring that this trend continues. 

Q.6. Do you believe in October of 2015 that American manufacturers or exporters were harmed while the Export-Import Bank was 

prevented from offering new credit assistance due to the lapse in 

its charter? If you answer in the affirmative, please specify which 

manufacturers or exporters were harmed. 

A.6. The 2015 reauthorization allowed Ex-Im to implement certain 

reforms required by Congress. If confirmed, I will work with my 

fellow Board members and Bank staff thoroughly review the implementation of the reforms. Further, I will work with my fellow 

Board members and relevant trade agencies to ensure that Bank’s 

actions are consistent with the President’s trade policy. 

Q.7. If you believed that American manufacturers or exporters 

were harmed while the Export-Import Bank was prevented from offering new credit assistance, why did you not acknowledge that 

harm in your statement at that time? 

A.7. Ex-Im is a demand driven agency. If confirmed, I will conduct 

a thorough review to determine the level of demand and any necessary changes to address such demands as they are consistent 

with the President’s trade policy. 

Q.8. With regard to Statement 2 above, why in October of 2015 did 

you believe that the Export-Import Bank ‘‘embodies the corruption 

of the free enterprise system?’’ Please offer a detailed rationale for 

your thinking at that time. 

A.8. As a Member of Congress, I believe in protecting Americans 

and being a steward of American taxpayers’ dollars funding the 

Government. In 2015, I was under the belief that there were significant instances of waste, fraud, and abuse at the Bank which 

would not be a good use of American taxpayers’ dollars. The Bank 

has made progress on this front since I made the comments, and, 

if confirmed, I look forward to ensuring that this trend continues. 

Q.9. Statement 3—‘‘The Export-Import Bank transformed the role 

of Government from a disinterested referee in the economy into a 

biased actor that uses your taxpayer dollars to tilt the scales in 

favor of its friends, and it mocks the American Dream by making 

victims of the startups that dare to compete.’’ (Floor statement, 10/ 

27/15) 

With regard to Statement 3 above, why in October of 2015 did 

you believe that the Export-Import Bank ‘‘transforms the role of 

the Government into . . . a biased actor to tilt the scales in favor 

of its friends?’’ Please offer a detailed rationale for your thinking 

at that time. 

172 

A.9. In 2015, I made that statement in the context of some egregious instances of waste, fraud, and abuse. Since I made the above 

comments, Ex-Im has made progress on this front, and I look forward to working with you, my fellow Board members, and Bank 

staff to continue this trend. 

Q.10. With regard to Statement 3 above, which ‘‘friends’’ were you 

referring to? If you were referring to any corporations, please specify those corporations. 

A.10. With respect to ‘‘friends’’ in that statement, I was referring 

in general to those who benefited from the instances of waste, 

fraud, and abuse at Ex-Im. 

Q.11. With regard to Statement 3 above, why in October of 2015 

did you believe that the Export-Import Bank ‘‘mocks the American 

Dream by making victims of the startups that dare to compete?’’ 

Please offer a detailed rationale for your thinking at that time, and 

please explain which startups you believed were harmed by the Export-Import Bank. 

A.11. In 2015, I made that statement in the context of some egregious instances of waste, fraud, and abuse. Since I made the above 

comments, Ex-Im has made progress on this front, and I look forward to working with you, my fellow Board members, and Bank 

staff to continue this trend. 

Q.12. Statement 4—‘‘the FAST Act also includes provisions to resurrect the most shameless example of crony capitalism Washington 

has ever concocted—the Export-Import Bank.’’ (Statement issued 

by your office, 12/8/15) 

With regard to Statement 4 above, please define the term ‘‘crony 

capitalism’’ as you used such term. 

A.12. As a Member of Congress, I believe in protecting Americans 

and being a steward of American taxpayers’ dollars funding the 

Government. In 2015, I was under the belief that there were significant instances of waste, fraud, and abuse at the Bank which 

would not be a good use of American taxpayers’ dollars. 

Q.13. With regard to Statement 4 above, please offer a detailed rationale for your thinking at that time. 

A.13. The above statement was made in the context of some egregious instances of waste, fraud, and abuse. Since I made the above 

comments, Ex-Im has made progress on this front, and I look forward to working with you, my fellow Board members, and Bank 

staff to continue this trend. 

Q.14. Do you now regret making any past statements regarding 

the Export-Import Bank? If yes, please specify which statements 

you now regret making and explain your reasoning for having regret for such statements. 

A.14. When I made the above statement, I was under the belief 

that there was egregious waste, fraud, and abuse at Ex-Im. The 

Bank has made progress on this front in recent years, and if confirmed, I would work with you, my fellow Board members, and 

Bank staff to continue this trend. 

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Q.15. Do you now retract any past statements regarding the Export-Import Bank? If yes, please specify which statements you now 

retract and explain your reasoning for retracting such statements. 

A.15. When I made the above statement, I was under the belief 

that there was egregious waste, fraud, and abuse at Ex-Im. The 

Bank has made progress on this front in recent years, and if confirmed, I would work with you, my fellow Board members, and 

Bank staff to continue this trend. 

Q.16. Statement 5—‘‘Other ethnicities are not that way . . . They’ll 

say yes to you constantly and then you’ll realize they didn’t really 

mean it.’’ (The Express Times, 11/24/2011) 

Which ethnicities (or countries per your clarification) were you 

referring to in statement 5? 

A.16. If confirmed, I will follow the letter of the law and treat everyone with dignity and respect. 

Q.17. Does holding a prejudiced view about the how ethnicities or 

persons from certain countries conduct business, as expressed by 

Statement 5, indicate that you would not want to facilitate transactions by the Export-Import Bank involving those countries? 

A.17. If confirmed, I will follow the letter of the law and treat everyone with dignity and respect. Further, if confirmed, I will not 

delay the Board from considering transactions that have been vetted and appropriately prepared by Bank staff. 

Q.18. During your nomination hearing, you stated repeatedly that 

you are committed to a ‘‘fully functioning’’ Export-Import Bank. 

Since making your statements in 2015 concerning the Export-Import Bank, exactly when did you switch your position on the Bank 

and desire for it to remain open? 

A.18. From the time I made my statements in 2015 to April 2017 

when the President nominated me to be the President of Ex-Im, 

the Bank has made significant progress to improve waste, fraud, 

and abuse. If confirmed, I will serve at the pleasure of the President. I will carry out the Administration’s policy to have Ex-Im be 

fully operational as intended by the 2015 reauthorization. 

Q.19. Statement 6—‘‘If the question is what has changed since 

2015, what we have seen changed is a new Administration, what 

we have since changed is a new agenda by this Administration to 

see to it that the economy actually grows and that businesses are 

given a fair chance to grow their businesses both nationally and 

internationally as well, so that is a significant change since 2015.’’ 

(Nomination hearing, 11/1/17) 

During my questioning, you offered the explanation above for 

your shift in position on the Export-Import Bank. Does this mean 

that you believe that the Ex-Im Bank is now a net creator of U.S. 

jobs? 

A.19. I support the President’s agenda to pursue trade policies to 

create American jobs and to promote U.S. businesses. If confirmed, 

I would use my role to ensure the Bank’s actions are consistent 

with the President’s trade policies. 

174 

Q.20. Why were you unwilling to support job creation by the Export-Import Bank under a Democratic Administration but you now 

support the Bank under the current Administration? 

A.20. I support the President’s agenda to pursue trade policies to 

create American jobs and to promote U.S. businesses. If confirmed, 

I would use my role to ensure the Bank’s actions are consistent 

with the President’s trade policies. 

Q.21. Doesn’t the explanation for your shift in position on the Export-Import Bank (statement above) indicate that your opposition 

to the Bank in 2015 was motivated by partisan politics? 

A.21. I support the President’s agenda to pursue trade policies to 

create American jobs and to promote U.S. businesses. If confirmed, 

I would use my role to ensure the Bank’s actions are consistent 

with the President’s trade policies. 

Q.22. Statement 7—‘‘some of those changes were also asked back 

in 2012, and they were not effectuated’’. (Nomination hearing, Sen. 

Rounds questions period, 11/1/17) 

What changes in either the 2012 or 2015 reauthorizations of the 

Export-Import Bank do you believe have not been effectuated? 

Please cite changes other than those changes that are awaiting 

final action by the Board of the Bank because of the present lack 

of quorum. 

A.22. I believe that changes in both the 2012 and 2015 reauthorizations have been implemented except for those that are awaiting for 

Board approval. 

Q.23. Do you disagree with any interpretation by the Export-Import Bank of changes to its charter contained within the 2012 or 

2015 reauthorization laws? If so, please cite the specific interpretations that you disagree with. 

A.23. I have not done a thorough review of the implementation of 

the 2012 and 2015 reauthorizations. If confirmed, I would like to 

have a detailed briefing by staff of the Bank for myself as well as 

my fellow Board members. 

Q.24. You cite changes made by the 2015 reauthorization as part 

of the rationale for your newfound support of the Bank. 

If that is the case, why did you oppose the reauthorization? 

A.24. In 2015, my position on the Bank was based on some egregious instances of waste, fraud, and abuse. Since then, the Bank 

has made progress, and I look forward to ensuring that the trend 

continues. 

Q.25. Do you believe that fair-value accounting practices would significantly limit the amount of credit assistance that the Export-Import Bank could provide? 

A.25. Fair-value accounting is a method used currently by the Congressional Budget Office (CBO). CBO’s assessments of valuation 

are a matter of public record. If confirmed, I would follow the letter 

of the law. 

Q.26. Do you believe that that the Export-Import Bank would be 

‘‘fully functional’’ if fair-value accounting practices were instituted 

175 

and the Bank’s ability to provide credit assistance was reduced as 

a result? 

A.26. As I stated at my nomination hearing, I am committed to 

carry out the President’s agenda and to have Ex-Im be fully operational as intended in the Bank’s last reauthorization. 

Q.27. You previously voted in favor of an amendment to the Export-Import Bank charter to implement fair-value accounting. 

Do you regret your vote (Schweikert amendment, Roll Call Vote 

#615, 11/4/15) to implement fair-value accounting at the Export-Import Bank, yes or no? 

A.27. Fair-value accounting is a method used currently by the Congressional Budget Office (CBO). CBO’s assessments of valuation 

are a matter of public record. If confirmed, I would follow the letter 

of the law. 

Q.28. If you were still a member of Congress today, would you vote 

to support the implementation of fair-value accounting at the Export-Import Bank? 

A.28. I am no longer a Member of Congress. If confirmed, I will 

carry out the President’s agenda to pursue trade policies that 

would create American jobs and improve global competitiveness for 

U.S. businesses. Further, if confirmed, I would follow the letter of 

the law. 

Q.29. If confirmed, do you commit to not developing or implementing fair-value accounting practices at the Export-Import Bank 

unless directed to by Congress? 

A.29. Fair-value accounting is a method used currently by the Congressional Budget Office (CBO). CBO’s assessments of valuation 

are a matter of public record. If confirmed, I would follow the letter 

of the law. 

Q.30. Critics of the Export-Import Bank continue to make false allegations of systemic fraud within the Bank. 

Are you aware that since the Export-Import Bank’s Office of Inspector General was established 10 years ago, there has been only 

one documented case of fraud related to the Bank’s credit assistance that involved a Bank employee? 

A.30. I am now aware that in the last 10 years, there has been 

only one documented case of internal fraud involving an employee 

of the Bank. 

Q.31. Will you publicly defend the Export-Import Bank against 

false or misleading charges of fraud? 

A.31. If confirmed, I will work with staff at the Bank and my fellow Board members, as necessary, to gather facts and details about 

any charges of fraud to determine its veracity or falsity. If the facts 

reveal the charges to be false or misleading, I, if confirmed, will 

work with my fellow Board member to ensure that honest and accurate rebuttals are being appropriately communicated. 

Q.32. Do agree that the Export-Import Bank’s extremely low default rate, 0.303 percent when last reported this year, is evidence 

that the Bank is carefully monitoring credit risk and external fraud 

176 

risks? If you do not agree for any reason, please offer a detailed explanation. 

A.32. A default rate of 0.303 percent signifies the Bank is carefully 

monitoring its credit risk and external fraud risks. 

Q.33. Are you aware that the aerospace industry’s positive trade 

balance of $90.5 billion last year was the largest trade surplus of 

any manufacturing industry in the U.S.? 

A.33. I appreciate your letting me know of the aerospace industry’s 

trade balance of $90.5 billion last year was the largest trade surplus of any manufacturing industry in the U.S. 

Q.34. Do you agree that resuming the provision of credit assistance 

by the Export-Import Bank to commercial aircraft, at levels previously supported by the Bank (pre-FY2015, as measured by value 

of exports supported), is essential for the competitiveness of American aerospace manufacturers and their domestic suppliers? 

A.34. If confirmed, I would work with my fellow Board members 

and staff at the Bank to review every transaction individually, including those transactions for aircraft financing. 

Q.35. Have you previously believed that the Export-Import Bank’s 

support for commercial aircraft exports are an example of cronyism? 

A.35. If confirmed, I would work with my fellow Board members 

and staff at the Bank to review every transaction individually, including those transactions for aircraft financing. 

Q.36. Do you presently believe that the Export-Import Bank’s support for commercial aircraft exports are an example of cronyism? 

If your answer is different than your answer to the previous question, please state when your view shifted. 

A.36. If confirmed, I would work with my fellow Board members 

and staff at the Bank to review every transaction individually, including those transactions for aircraft financing. If confirmed, I 

would work with staff at the Bank to pursue a rigorous review of 

Bank operations to ensure that it provides maximum value to the 

American Taxpayers. 

Q.37. If confirmed, would you work to alter or change any policies 

or procedures of the Bank with regard to the analysis or processing 

of transactions, including economic impact analysis regarding aircraft transactions? If you answer in the affirmative to the preceding question, please cite which policies or procedures you would 

work to alter or change. 

A.37. If confirmed, I would work with my fellow Board members 

to consider any proposed change in policies or procedures of the 

Bank with regard to the analysis or processing of transactions, including economic impact analysis regarding aircraft transactions. 

Q.38. Do you believe that the Export-Import Bank needs to begin 

quickly processing the $30 billion pipeline of deals that need board 

approval but cannot be considered because of the present lack of 

board quorum? 

177 

A.38. If confirmed, I would work with my fellow Board member and 

staff at the Bank to properly review transactions pursuant to the 

Charter. 

Q.39. Do you believe that American exporters and manufacturers 

have been harmed while the Export-Import Bank is unable to support transactions larger than $10 million? 

A.39. If confirmed, I would work with my fellow Board members 

and relevant trade agencies to improve global competitiveness for 

U.S. businesses, increase U.S. manufacturing, and promote American jobs. 

Q.40. Do your past statements calling for the Export-Import Bank 

to be shut down compromise your ability to support reauthorization 

of the Bank in 2019? 

A.40. My prior statements about Ex-Im were made in the context 

of egregious waste, fraud, and abuse. The Bank has since made 

progress and I look forward to ensuring that the trend continues. 

If confirmed, I would work with you, my fellow Board members, 

stakeholders, and staff at the Bank to support reauthorization of 

the Bank in 2019. 

Q.41. If confirmed, would you support the Export-Import Bank’s 

current climate policy and would you take any actions to alter it? 

A.41. If confirmed, I would support the President’s agenda to make 

America prosperous with the highest standard of environmental 

protection. 

Q.42. If confirmed, would you work to ensure that the comment 

process for environmental and social impacts from projects is properly structured and adequately resourced to ensure that comments 

from concerned parties are meaningfully considered? 

A.42. If confirmed, I would work to ensure that the comment process for environmental and social impacts from projects is appropriately structured to ensure that comments from concerned parties are meaningfully considered. 

Q.43. If confirmed, do you commit to providing all documents and 

materials that the Office of Inspector General requests? 

A.43. Yes, if confirmed, I commit to providing all documents and 

materials that the Office of Inspector General requests in accordance with the law and regulations. 

Q.44. You once agreed with a constituent during a public forum 

that President Obama should show his birth certificate. 

Can you cite another instance where you publicly stated that an 

elected official in the U.S. that should be required to show their 

birth certificate, or did you only state that publicly with regard to 

President Obama? 

A.44. If confirmed, I will follow the letter of the law and treat everyone with dignity and respect. My personal views on social issues 

have no impact on my ability to lead the Bank and create jobs. 

Q.45. You previously made discriminatory comments regarding 

LGBT candidates for public office. 

Do you believe that your views would disqualify you as the CEO 

at major U.S. corporations? 

178 

A.45. My personal views on social issues have no impact on my 

ability to lead the Bank or serve as a CEO of a major U.S. corporation. If confirmed, I will follow the letter of the law and treat everyone with dignity and respect. 

Q.46. As a nominee for an executive role, do you believe in the 

need to eliminate discrimination, including discrimination based on 

sexual orientation, within the workplace? 

A.46. My personal views on social issues have no impact on my 

ability to lead the Bank or serve as a CEO of a major U.S. corporation. If confirmed, I will follow the letter of the law and treat everyone with dignity and respect. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR ROUNDS 

FROM SCOTT GARRETT 

Q.1. Mr. Garrett, while you were serving in the House of Representatives, you said on multiple occasions that you did not think 

that the Export-Import Bank should continue to exist. For example, 

during debate on the 2015 reauthorization of Ex-Im, you said the 

following on the House floor: 

In June of this year, after 81 years of doling out taxpayerfunded welfare for mega-corporations, the American people 

said enough, and Congress let the Export-Import Bank expire. 

Yet, today, through a little known and little used legislative maneuver being used to circumvent the will of the 

American people, they are resurrecting this fund for corporate welfare. 

The Export-Import Bank transformed the role of Government from a disinterested referee in the economy into a biased actor that uses your taxpayer dollars to tilt the scales 

in favor of its friends, and it mocks the American Dream 

by making victims of the startups that dare to compete. 

If we promoted responsible Government policies, responsible budget policies, expanded free markets, lowered and 

simplified the income taxes, and repealed onerous regulations, American businesses would thrive in the global markets. But none of that is on the table today on what we 

are about to consider. 

Instead, the proposal before us is the resurrection of a 

bank that embodies the corruption of the free enterprise 

system. Yes, we have the opportunity today to save capitalism from cronyism. Yes, we have the opportunity to 

protect the American taxpayer and the American Dream 

and to preserve free enterprise. We have the opportunity 

today to keep the Export-Import Bank out of business. We 

should take each of those opportunities. 

In addition, when you were speaking at an anti-Ex-Im press conference in 2015, you said, 

It’s hard to imagine anything more unfair and un-American than having the Government financially support 

mega-corporations at the expense of small businesses and 

179 

American workers. But that is exactly what has been happening, and it will continue to happen if we don’t let the 

Export-Import Bank expire next month. It rewards those 

with close relationships with Washington bureaucrats and 

makes victims of startups that dare to compete against 

them—literally picking winners and losers in our economy. 

Ex-Im has transformed the role of Government from a disinterested referee that guarantees a free and open marketplace into a biased actor that tilts the scales in favor of its 

friends in businesses. We have the opportunity to save 

capitalism from cronyism and to fulfill a promise to the 

American people to work for them instead of a select few 

with special connections in Washington. For the sake of 

the American taxpayer and the preservation of the free enterprise system, Congress should put the Export-Import 

Bank out of business. 

What made you change your mind about whether or not Ex-Im 

should exist? 

A.1. I appreciate the questions raised about the juxtaposition of my 

current and prior positions on Ex-Im. Since the Bank’s last reauthorization in 2015, we have a new Administration led by President 

Trump that is committed to growing American manufacturing jobs 

and enhancing transparency, efficiency, and predictability throughout the Federal Government. President Trump’s leadership and 

commitment to good governance instilled in me the confidence to 

accept the President’s offer to lead Ex-Im, help create American 

manufacturing jobs, and ensure the Bank fully implements reforms 

mandated by Congress. 

My role in public policy has changed since the Bank’s reauthorization in 2015. I was previously a Member of the House of Representatives with the responsibility to utilize communications and 

legislative tactics intended to promote good Government. I am now 

the President’s nominee with the opportunity to lead a Federal 

agency that, if properly administered, can inspire the confidence of 

all members of the Senate and House of Representatives. 

I would also like to take this opportunity to clarify a question 

you posed in one of our office visits regarding the proposals that 

may come before the Board. You may be interested to know that 

a provision added to the Board’s charter in the 2006 reauthorization states: ‘‘At the request of any two members of the Board of Directors, the Chairman of the Board shall place an item pertaining 

to the policies or procedures of the Bank on the agenda for discussion by the Board. Within 30 days after the date such a request 

is made, the Chairman shall hold a meeting of the Board at which 

the item shall be discussed.’’ 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR MENENDEZ FROM SCOTT GARRETT 

Q.1. A major goal of the President’s trade agenda is to reduce our 

country’s trade deficit. At a time when our economic competitors 

are aggressively using their export credit agencies to sell goods 

abroad, the Ex-Im Bank is an indispensable tool that helps level 

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replscottlgarrettlvisitslwarre.html 

the playing field for American exporters. Do you believe that the 

Ex-Im Bank is an effective tool for increasing U.S. exports thereby 

reducing our trade deficit? 

A.1. If confirmed, I will work with my fellow Board members and 

relevant trade agencies to ensure that the Bank’s actions are consistent with the President’s trade policy. I strongly support the 

President’s agenda to pursue trade policies that improve global 

competitiveness for U.S. businesses and create American jobs. 

Q.2. Some critics of the Ex-Im Bank argue that the fact that over 

80 other countries maintain export credit agencies should not keep 

us from shuttering the Ex-Im Bank. But if Congress were to close 

the Ex-Im Bank today, what options would the U.S. have to convince countries like China, Brazil, and Russia to refrain from using 

export credits to undercut U.S. manufacturers? 

A.2. If confirmed, I will work with you, others from relevant trade 

agencies and the President to pursue trade policies that would 

allow U.S. manufacturers to be globally competitive and promote 

American jobs. 

Q.3. In 2015, you voted against reauthorization of the Ex-Im Bank. 

However, in your testimony and during your hearing, you repeatedly stated that if you are confirmed, the Bank will continue to 

fully operate. If confirmed, will you commit to supporting in 2019 

a clean reauthorization or one that is substantially similar to the 

2015 reauthorization? 

A.3. If confirmed, I look forward to working closely with Congress 

on the reauthorization of the Bank in 2019. I will consult with each 

Member of this Committee on any reforms that may be required to 

ensure the Bank to reach its full potential. 

Q.4. In 2015, you pushed for the exclusion of openly LGBTQ candidates by refusing to support the National Republican Congressional Committee because it ‘‘actively recruited gay candidates and 

supported homosexuals in primaries.’’ While you were in Congress, 

you voted against hate crimes protections for LGBTQ people, you 

voted against the repeal of the ‘‘Don’t Ask, Don’t Tell’’ policy, and 

you voted two times in favor a constitutional amendment to ban 

same-sex marriage. What assurances can you provide to all Ex-Im 

employees, and particularly LGBTQ employees, that they will be 

treated with fairness and dignity and afforded all of the rights due 

to them under the law? 

A.4. If confirmed, I will follow the letter of the law and treat all 

employees with dignity and respect. My personal views on social 

issues have no impact on my ability to lead the Bank and help create American jobs. 

Q.5. During a tour of New Jersey businesses in 2011, regarding 

businesses selling products abroad, you said, ‘‘other ethnicities are 

not that way [straightforward] . . . they’ll say yes to you constantly and then you’ll realize they really didn’t mean it.’’ 1

Which ‘‘ethnicities’’ will say yes and not mean it? 

181 

Do you believe that some ‘‘ethnicities’’ are less straightforward or 

honest than others? 

A.5. If confirmed, I will follow the letter of the law and treat all 

people of different ethnicities and background with dignity and respect. My personal views on social issues have no impact on my 

ability to lead the Bank and help create American jobs. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM SCOTT GARRETT 

Q.1. Cybersecurity: In light of the major cybersecurity breaches, 

most recently at Equifax, that have affected hundreds of millions 

of consumers in the United States, how robust are Ex-Im’s protections of sensitive financial information? 

A.1. I understand and share your concerns for Ex-Im to have a robust structure to protect its sensitive financial information. I am 

not familiar with the specific details of the IT system at Ex-Im. If 

confirmed, I would make it a priority to learn more about the IT 

system at Ex-Im and work with my fellow Board members and 

Bank staff to put in place a strong system to protect against cybersecurity threats. 

Q.2. Long-Term Reauthorization: Does the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity? 

A.2. It is conceivable that someone may view the lack of certainty 

in Ex-Im’s may have an impact on American businesses. If confirmed, I will serve at the pleasure of the President and will do all 

I can to carry out the Administration’s policy to have Ex-Im be 

fully operational as intended by the law. I look forward to working 

closely with both the House and Senate on the reauthorization of 

the Bank in 2019. 

Q.3. Rural/Manufacturing: What else can Ex-Im be doing to make 

sure that small businesses in rural Virginia, places like Marion in 

Southwest Virginia and Emporia in Southside Virginia, learn about 

and take advantage of Ex-Im? 

A.3. If confirmed, I would look forward to working with my fellow 

Board members, Bank staff, and stakeholders on new ideas and 

projects to conduct outreach, including the use of technology, to 

businesses in all rural areas of the United States. 

Q.4. Fraud, Waste, and Abuse: Does the Board require a quorum 

to approve some of the positions that were established to combat 

fraud, waste, and abuse that were part of the last reauthorization 

in 2015? 

A.4. Yes, pursuant to the law, a quorum of the Board is required 

to approve some of the positions established during the reauthorization of 2015. If confirmed, I would work with my fellow Board 

members to prioritize the approval of these positions. 

Q.5. Mr. Garrett, you have been critical of the Ex-Im Bank and the 

role it serves, even going as far as calling it ‘‘corporate welfare’’ and 

a symbol of Washington’s ‘‘crony capitalism.’’ You have called for 

Ex-Im to be shut down repeatedly and voted against its reauthorization multiple times during your tenure in Congress. It is imporVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00185 Fmt 6602 Sfmt 6602 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
182 

tant to note here that Ex-Im operates at zero cost to the taxpayer— 

in fact, Ex-Im sends $1 billion to the U.S. Treasury per year. Do 

you regret undertaking your crusade against Ex-Im during your 

time as a Congressman? 

A.5. My prior comments about Ex-Im were made in the context of 

some egregious instances of waste, fraud, and abuse. The Bank has 

made progress on this front since I made the comments, and, if 

confirmed, I look forward to ensuring that this trend continues. 

Q.6. Could you explain your opposition to American businesses who 

utilize Ex-Im when they have no other financing options? Should 

these businesses have thrown in the towel and allowed Chinese 

companies that receive many types of subsidies to take their business? 

A.6. I strongly support the President’s agenda to pursue trade policies that create American jobs and promote a globally competitive 

playing field for U.S. businesses. If confirmed, I would work with 

you, the relevant trade agencies, and stakeholders to ensure the 

Bank’s actions are consistent with the President’s trade policy. 

Q.7. Following a 5-month lapse in authority, Ex-Im’s charter was 

renewed on December 4, 2015, but the Bank operated for the entire 

fiscal year without a quorum. This meant Ex-Im could not approve 

transactions worth more than $10 million, significantly handicapping the Bank. In FY2014, the most recent year in which ExIm operated with a quorum, the Bank supported $27.5 billion in 

exports and 165,000 jobs. In FY2016, the Bank only supported $8 

billion in exports and 52,000 jobs. In Virginia, Ex-Im aided more 

than 41 exporters for a total of $415 million in exports in FY2014— 

with 51 percent of these exporters being small businesses. Ex-Im 

aided only 33 exporters for a total of $172 million in exports in 

FY2016—70 percent of which were small businesses. 

Was your campaign against Ex-Im worth 100,000 American jobs? 

How do you explain your actions to the thousands of hard-working Americans who were out of work because of the lack of a 

quorum? 

Would you continue to make decisions as President of Ex-Im that 

would result in fewer Americans working? 

A.7. My prior statements about Ex-Im were made in the context of 

some egregious instances of waste, fraud, and abuses. The Bank 

has made progress on this front in recent years and I look forward 

to ensuring that the trend continues. If confirmed, I would work 

with my fellow Board members to not delay considering transactions that have been vetted by Bank staff. 

Q.8. In your career as a lawyer and lawmaker, have you ever 

played a role advising on the types of transactions supported by 

Ex-Im? Please explain in detail how your background makes you 

qualified for a role on Ex-Im’s Board. 

A.8. My experience as a Member of Congress has allowed me to 

conduct oversight reviews and collect testimonies from agencies, industries and concerned citizens, and consider legislation on all 

issues under the jurisdiction of the House Financial Services and 

Budget Committees which include the Export-Import Bank. 

183 

Q.9. As a Member of Congress, you told your own party that you 

would no longer donate money to a party fund that had supported 

gay candidates for Congress. What assurances can you provide the 

Committee that you won’t similarly discriminate against companies 

seeking Ex-Im support? 

A.9. My personal views on social issues have no impact on my ability to lead the Bank, create American jobs, and promote U.S. businesses. If confirmed, I will follow the letter of the law and treat everyone with dignity and respect. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR HEITKAMP 

FROM SCOTT GARRETT 

Q.1. The 2015 Reauthorization included a provision to negotiate 

with other OECD countries to eliminate export credit worldwide. 

How do you interpret the role of the Chairman relative to that 

position? 

A.1. If confirmed, I will work with my fellow Board members and 

others from the relevant trade agencies to ensure the Bank’s actions are consistent with the President’s trade policy. 

Q.2. If other countries are unwilling to eliminate or reduce export 

credit, do you think it is prudent for the USG to unilaterally disarm? 

A.2. If confirmed, I will support and carry out the President’s agenda to pursue trade policies that create American Jobs and are fair 

to the American worker. If confirmed, I will work closely with you 

and the relevant trade agencies to ensure the Bank’s actions are 

consistent with the President’s trade policy. 

Q.3. How do you consider the companies in the supply chain that 

produce items that go into larger products, many of which are 

small businesses? 

A.3. If confirmed, I would support the President’s agenda to pursue 

trade policies that create American jobs and promote U.S. businesses of all sizes and industries. 

Q.4. Do you see the economic value that the Bank provides to them 

as ‘‘invisible exporters’’? 

A.4. If confirmed, I would support the President’s agenda to pursue 

trade policies that create American jobs and promote U.S. businesses of all sizes. My prior statements and positions on the Bank 

were in the context of egregious instances of waste, fraud, and 

abuse. The Bank has made progress since my statements and I 

look forward to ensuring the trend continues. 

Q.5. You cited the reforms and the new Administration as a justification for the apparent epiphany that you’ve had on the ExportImport Bank. However, you VOTED AGAINST all of those reforms 

in 2015, just as you voted against the reforms in 2012. 

Why do you now think they—along with the Bank as a whole— 

are now OK? 

A.5. I strongly support the President’s agenda to pursue trade policies that improve global competitiveness for U.S. businesses and 

create American jobs. If confirmed, I will work with my fellow 

184 

Board members and relevant trade agencies to ensure the Bank’s 

actions are consistent with the President’s trade policy. 

Q.6. You said you wanted the Bank to be ‘‘fully functional’’. 

How do you define that? 

A.6. I think the Bank is fully functional if it acts in accordance 

with the law, its Board maintains at least a quorum, it is reauthorized by Congress, and it receives its appropriations as allocated 

under the President’s budget. 

Q.7. Will you deny any transaction that the staff recommends from 

coming to the Board for a vote? 

A.7. If confirmed, I will work with my fellow Board members to 

consider transactions that have been vetted and appropriately prepared by Bank staff. 

Q.8. Also, what specific reforms—outside of the ones Congress already mandated—would you implement? 

A.8. If confirmed and after my review of the status of how the 

Bank is operating, I would be pleased to work with you, my fellow 

Board members and staff at the Bank to recommend reforms, if 

any are warranted. 

Q.9. What is your vision and timeline for those changes? 

A.9. Having not been confirmed and not spent sufficient time reviewing the Bank and its operation, it would be unwise and premature for me to suggest any timeline for unspecified reforms. 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR CORTEZ MASTO FROM SCOTT GARRETT 

Q.1. Do you believe that the Export-Import Bank supports American jobs and helps U.S. small businesses? 

A.1. Yes, I believe the mission of the Export-Import Bank pursuant 

to its charter is to support American jobs and U.S. businesses. 

Q.2. Do you regret your actions taken in 2015 to shut-down the Export-Import Bank? If you had it to do over again, would you take 

the same actions? 

A.2. My vote as a Member of Congress is a matter of public record. 

My vote in 2015 was dependent on the information I had in 2015. 

Q.3. Please cite examples, if any, of actions taken during your career as an elected official to support the equality and dignity of 

LGBTQ people. 

A.3. Having served as a Member of Congress, my vote record is a 

matter of public record. If confirmed, I will follow the letter of the 

law and treat everyone with dignity and respect. 

Q.4. If confirmed to lead the Export-Import Bank, what steps will 

you take to ensure that the 500 or so employees of the Bank are 

ensured a workplace free from discrimination on the basis of protected characteristics, including sexual orientation and gender 

identity? 

A.4. If confirmed, I will follow the letter of the law and treat all 

employees with dignity and respect. My personal views on social 

185 

issues have no impact on my ability to lead the Bank and create 

jobs. 

Q.5. In 2015, you openly stated that you were withholding contributions from the NRCC because of their support for openly gay 

candidates. Can you commit that the sexual orientation and gender 

identity of individuals seeking help from the Export-Import Bank 

will not be a factor on any of the Bank’s decisions? 

A.5. My personal views on social issues have no impact on my ability to lead the Bank and to help create more jobs for Americans. 

If confirmed, I will follow the letter of the law and treat all employees with dignity and respect. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM KIMBERLY A. REED 

Q.1. Do you believe that the Export-Import Bank needs to begin 

quickly processing the $30 billion pipeline of transactions that need 

board approval but cannot be considered because of the present 

lack of board quorum? 

A.1. Yes, if confirmed and following orientation and Office of Inspector General briefings that will inform me on Export-Import 

Bank of the United States (Bank) internal procedures and critical 

immediate needs, I will support a process to fairly, fully, and expeditiously consider the pipeline of transactions brought before the 

Board of Directors. As part of this process and with my every action at the Bank, I will adhere to the Bank Charter and Bylaws, 

as well as all other applicable laws and regulations. 

Q.2. Do you believe that American exporters and manufacturers 

have been harmed while the Export-Import Bank is unable to support transactions larger than $10 million? Please offer you views on 

the economic benefits to American exporters and manufacturers 

from addressing the transaction backlog. 

A.2. Yes, the Bank plays an important role in contributing to the 

employment of United States workers and expanding United States 

economic growth. I am informed on American exporter and manufacturer challenges due to the Bank’s lack of a quorum and resulting inability to support transactions larger than $10 million. For 

example, the Bankers Association for Finance and Trade noted the 

following in their November 1, 2017, Statement for the Record: 

‘‘Without access to a U.S. ECA, U.S. companies have lost out on the 

opportunity to bid on at least $67 billion in foreign infrastructure 

projects over the past year—with hundreds of billions of dollars in 

projects on the horizon. These sales do not just impact the manufacturers directly, but the countless supply chain companies of all 

sizes that provide inputs and services to them.’’ Once there is a 

Board quorum and the reported $30 billion transaction backlog is 

resolved, the Bank will be supporting American exporters, manufacturers, and workers and fulfilling the President’s priority of creating good American jobs. It is vital that the United States be competitive on the global stage. 

Q.3. Do you believe that any changes contained in the 2012 or 2015 

reauthorizations of the Export-Import Bank have not been properly 

186 

implemented? Please cite any changes you believe have not been 

properly implemented, excluding any changes that are awaiting 

final action by the Board of the Bank because of the present lack 

of quorum. 

A.3. No, I am not aware of any 2012 or 2015 reauthorization 

changes that have not been properly implemented, excluding 

changes that require a quorum. If confirmed, I will request an internal Export-Import Bank briefing on the status of the 2012 and 

2015 reauthorization implementations to ensure the Bank is fulfilling its Charter. I also will work with Congress on any issues of 

concern. 

Q.4. Will you publicly defend the Export-Import Bank against false 

or misleading charges of fraud? 

A.4. Once a final determination is made by the Office of Inspector 

General and/or other appropriate expert, I, if confirmed, will work 

with my Board colleagues to ensure that the Bank properly responds to any false or misleading charge of fraud. As part of this 

process, I will work with the Chief Ethics Officer and other Bank 

officials to ensure that all statements, including those that I make 

to publicly defend the Bank, are appropriate and follow communication best practices. 

Q.5. Do you agree that the Export-Import Bank’s extremely low default rate, 0.303 percent when last reported this year, is evidence 

that the Bank is carefully monitoring credit risk and external fraud 

risks? If you do not agree for any reason, please offer a detailed explanation. 

A.5. Yes, the Bank has an extremely low default rate, which is indicative of good transaction approval practices. However, it also depends upon the quality of the portfolio. While I do not yet have information to comment on the Bank’s internal processes, if confirmed, I look forward to approving a qualified Chief Risk Officer 

and working with them and the Board to ensure the Bank is following the best risk management and mitigation practices. 

Q.6. Do you agree that resuming the provision of credit assistance 

by the Export-Import Bank to commercial aircraft, at levels previously supported by the Bank (pre-FY2015, as measured by value 

of exports supported), is essential for the competitiveness of American aerospace manufacturers and their domestic suppliers? 

A.6. Yes, it is important to support credit assistance for U.S. commercial aircraft and their suppliers. The amount should be determined by the financing need and/or whether the global marketplace 

playing field needs to be leveled. I, if confirmed, will review each 

transaction independently, on the merits, and in accordance with 

the Bank’s Charter. Ultimately, my goal would be to support 

United States jobs through exports. 

Q.7. If confirmed, are there any specific policies or procedures of 

the Export-Import Bank that you would work to alter or change? 

A.7. No. I currently have no specific alterations or changes that I, 

if confirmed, would undertake at the Bank. As part of Board best 

practices, I would have internal and external discussions with staff, 

the Office of Inspector General, stakeholders, customers, potential 

187 

customers, experts, and Congress, among others, to inform my 

opinion on the effectiveness, efficiency, and transparency of specific 

policies or producers. 

Q.8. If confirmed, would you work to ensure that the comment 

process for environmental and social impacts from projects is properly structured and adequately resourced to ensure that comments 

from concerned parties are meaningfully considered? 

A.8. Yes, I, if confirmed, will work with my fellow Board Members 

and Bank staff to ensure that the environmental and social impact 

comment process is properly structured and adequately resourced 

to ensure comments are meaningfully considered. 

Q.9. If confirmed, do you commit to providing all documents and 

materials that the Office of Inspector General requests? 

A.9. Yes, I will commit to providing all documents and materials 

requested by the Office of Inspector General in accordance with 

Federal laws and regulations. I value the independent role that Inspectors General play at the Bank and in our Government. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM KIMBERLY A. REED 

Q.1. Cybersecurity: In light of the major cybersecurity breaches, 

most recently at Equifax, that have affected hundreds of millions 

of consumers in the United States, how robust are Ex-Im’s protections of sensitive financial information? 

A.1. Government cybersecurity, in general, needs bolstering and 

additional work across the board. Although I currently do not have 

internal Bank knowledge, I, if confirmed, will request staff and Office of Inspector General briefings on the Bank’s protections of sensitive financial information and take action as needed. I am committed to robust cybersecurity, good enterprise risk management 

practices, and other protections. 

Q.2. Long-Term Reauthorization: Does the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity? 

A.2. Yes, numerous stakeholders and customers say that American 

businesses and workers are hurt because of the Bank’s uncertainty, 

including through the lack of a long-term reauthorization and fully 

functioning Board of Directors. There are now 95 foreign Export 

Credit Agencies—including 11 acknowledged in the past year many 

of which are used by foreign Governments attempting to move U.S. 

jobs and business revenue to their countries. Without a long-term 

reauthorization, U.S. jobs and business revenue may move to other 

countries that offer more aggressive, predictable, efficient, reliable, 

flexible and competitive Export Credit Agency products and programs. 

Q.3. Rural/Manufacturing: What else can Ex-Im be doing to make 

sure that small businesses in rural Virginia, places like Marion in 

Southwest Virginia and Emporia in Southside Virginia, learn about 

and take advantage of Ex-Im? 

A.3. As I testified on November 1, 2017, ‘‘I am especially interested 

in making sure that small- and medium-enterprises, just the kind 

188 

of businesses that I am so familiar with in West Virginia, have full 

access to the programs authorized by Congress.’’ I, if confirmed, 

will and encourage Bank staff to work with all stakeholders—Congressional offices, community banks and credit unions, local Chambers of Commerce, trade, manufacturing, business, and agriculture 

organizations, local government agencies, women and minorityowned business organizations, the media, academia, and others— 

to proactively share the Bank’s mission and products with rural 

small businesses. Through this outreach, the Bank should identify 

unmet needs and gaps where the Bank could make the difference 

for American workers and exports. The Bank should set up a rigorous and effective measurement process to track both impact and 

return on investment, including new small business applicants and 

the creation of U.S. jobs. 

Q.4. Fraud, Waste, and Abuse: Does the Board require a quorum 

to approve some of the positions that were established to combat 

fraud, waste, and abuse that were part of the last reauthorization 

in 2015? 

A.4. Yes, a Board quorum is required to approve the positions of 

Chief Ethics Officer and Chief Risk Officer, both of which were created as part of the 2015 reauthorization and are important positions to help to combat waste, fraud, and abuse. If confirmed, I look 

forward to promptly approving qualified Chief Ethics and Risk Officers and faithfully executing all our laws consistent with the intent 

of Congress. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM SPENCER BACHUS III 

Q.1. Do you believe that the Export-Import Bank needs to begin 

quickly processing the $30 billion pipeline of transactions that need 

board approval but cannot be considered because of the present 

lack of board quorum? 

A.1. Yes, I understand that these transactions are aging and that 

they are being lost to other countries’s exporters because Ex-Im is 

not fully operational and cannot approve large transactions without 

a quorum. I believe the lack of Board quorum has hurt the U.S. 

economy because the exporters are driven offshore to seek financing support for their businesses. As a result, the big loss to the 

United States will be American jobs. So if confirmed, I would work 

with my fellow Board members and Bank staff to review all transactions brought before the Board in a timely manner and consistent with the requirements set forth in Ex-Im’s charter. 

Q.2. Do you believe that American exporters and manufacturers 

have been harmed while the Export-Import Bank is unable to support transactions larger than $10 million? Please offer you views on 

the economic benefits to American exporters and manufacturers 

from addressing the transaction backlog. 

A.2. Yes, there is plenty of evidence to show the U.S. companies 

have lost opportunities to pursue billions of dollars because they 

were not able to rely on Ex-Im to finance the contracts. It is my 

view that American exporters and manufacturers will enjoy the 

189 

economic benefits in the form of more business and more jobs when 

these backlogged transactions are addressed. 

Q.3. Do you believe that any changes contained in the 2012 or 2015 

reauthorizations of the Export-Import Bank have not been properly 

implemented? Please cite any changes you believe have not been 

properly implemented, excluding any changes that are awaiting 

final action by the Board of the Bank because of the present lack 

of quorum. 

A.3. I am not aware of any reforms contained in the 2012 and 2015 

reauthorizations that have not been properly implemented. I am 

aware of a few changes in the last reauthorizations which require 

a Board quorum in order to be fully implemented. They are: 

1. Approve ethics officer 

2. Approve risk officer 

3. Terminating audit committee 

4. Approve medium term program 

5. Approve guidelines for staff to approve small business loans 

6. Appoint members to sub-Saharan advisory committee 

Q.4. Will you publicly defend the Export-Import Bank against false 

or misleading charges of fraud? 

A.4. Yes, if confirmed, I will work with Bank staff and my fellow 

Board members to review charges of fraud and to respond appropriately. 

Q.5. Do you agree that the Export-Import Bank’s extremely low default rate, 0.303 percent when last reported this year, is evidence 

that the Bank is carefully monitoring credit risk and external fraud 

risks? If you do not agree for any reason, please offer a detailed explanation. 

A.5. Yes. I would also like to point out that no commercial banks 

could do business with such a low level rate of risk. 

Q.6. Do you agree that resuming the provision of credit assistance 

by the Export-Import Bank to commercial aircraft, at levels previously supported by the Bank (pre-FY2015, as measured by value 

of exports supported), is essential for the competitiveness of American aerospace manufacturers and their domestic suppliers? 

A.6. Yes, I believe that resuming the credit assistance by Ex-Im to 

the American aerospace manufacturers is critical to the leveling of 

the playing field for U.S. Companies. Of about $140 to 150 billion 

annual market share, the American manufacturers, with the support of Ex-Im financing, can win a huge portion of the market 

share. If confirmed, I will work with my fellow Board members to 

review all transactions pursuant to the charter. I am in full support of promoting American manufacturers to grow the economy 

and to create American jobs. 

Q.7. If confirmed, are there any specific policies or procedures of 

the Export-Import Bank that you would work to alter or change? 

A.7. If confirmed, I would like to work with you and my fellow 

Board members to review Ex-Im current policies and to suggest 

any changes to allow the Bank to be competitive with other ECAs. 

190 

Q.8. If confirmed, would you work to ensure that the comment 

process for environmental and social impacts from projects is properly structured and adequately resourced to ensure that comments 

from concerned parties are meaningfully considered? 

A.8. Yes, if confirmed, I would work with my fellow Board members 

and Bank staffs to ensure that the environmental and social impacts comment process is properly structured and adequately 

resourced to ensure comments are meaningfully considered. 

Q.9. If confirmed, do you commit to providing all documents and 

materials that the Office of Inspector General requests? 

A.9. Yes, if confirmed, I would work with Bank staff to provide documents and materials to the Office of Inspector General in accordance with the law and regulations. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM SPENCER BACHUS III 

Q.1. Cybersecurity: In light of the major cybersecurity breaches, 

most recently at Equifax, that have affected hundreds of millions 

of consumers in the United States, how robust are Ex-Im’s protections of sensitive financial information? 

A.1. Thank you Senator for a very good question. If confirmed, I 

will commit to looking into this issue and gather more details from 

the staff at the Bank. 

Q.2. Long-Term Reauthorization: Does the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity? 

A.2. Yes, I believe that the lack of a long-term reauthorization 

hurts American businesses because of the uncertainty in Ex-Im’s 

longevity. The lack of a long-term reauthorization has caused companies to move U.S. jobs overseas. If Congress continues to send 

the message to customers that U.S. Ex-Im is unreliable, they are 

more likely to turn to other ECAs for financing and not rely on ExIm Bank. I strongly believe this will impact negatively on U.S. jobs 

and exports. I believe a longer reauthorization removes the uncertainty and underscores the U.S. Government’s commitment to 

American exporters. 

Q.3. Rural/Manufacturing: What else can Ex-Im be doing to make 

sure that small businesses in rural Virginia, places like Marion in 

Southwest Virginia and Emporia in Southside Virginia, learn about 

and take advantage of Ex-Im? 

A.3. I believe that Ex-Im needs to make a greater effort to educate 

small business exporters everywhere about the products offered by 

the Bank and encourage a collaborative and cooperative relationship with Regional and community Banks. If confirmed, I would 

work with my fellow Board members, Bank staff and stakeholders 

to improve outreach efforts to the small businesses in rural America. 

Q.4. Fraud, Waste, and Abuse: Does the Board require a quorum 

to approve some of the positions that were established to combat 

fraud, waste, and abuse that were part of the last reauthorization 

in 2015? 

191 

A.4. Yes, a Board quorum is required to approve the positions of 

Chief Ethics Officer and Chief Risk Officer which were created in 

the 2015 reauthorization. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM JUDITH DELZOPPO PRYOR 

Q.1. Do you believe that the Export-Import Bank needs to begin 

quickly processing the $30 billion pipeline of transactions that need 

board approval but cannot be considered because of the present 

lack of board quorum? 

A.1. Yes, I believe it is critical that the Board quickly move to 

begin processing the transactions that have been in its pipeline for 

as long as 2 years now. If confirmed, I will thoroughly review all 

transactions brought before the Board in a timely fashion to ensure 

they are consistent with requirements set forth in Ex-Im’s Charter. 

Q.2. Do you believe that American exporters and manufacturers 

have been harmed while the Export-Import Bank is unable to support transactions larger than $10 million? Please offer you views on 

the economic benefits to American exporters and manufacturers 

from addressing the transaction backlog. 

A.2. Yes, I believe that American exporters and manufacturers 

have been put at a competitive disadvantage in markets around 

the world due to the inability of Ex-Im to fill the financing gap and 

level the playing field. Today, Ex-Im has a pipeline of transactions 

worth more than $30 billion that are waiting for Board consideration. The delay in considering these transactions can mean sales— 

and the American jobs they support—lost to foreign competitors. 

With foreign export credit agencies providing around $230 billion 

in medium- and long-term financing last year alone, there may be 

many more cases where a U.S. exporter lost sales opportunities because Ex-Im was not fully functional. 

When Ex-Im is able to support U.S. exporters, I believe they can 

reach new markets and boost their sales. Those increased sales directly support well-paying, quality American jobs. 

Q.3. Do you believe that any changes contained in the 2012 or 2015 

reauthorizations of the Export-Import Bank have not been properly 

implemented? Please cite any changes you believe have not been 

properly implemented, excluding any changes that are awaiting 

final action by the Board of the Bank because of the present lack 

of quorum. 

A.3. I understand there are a number of changes that require a 

Board quorum in order for them to be finalized, including approval 

of a Chief Risk Officer and a Chief Ethics Officer, as well as 

changes to help Ex-Im more quickly process certain transactions 

that typically support small- and medium-sized businesses. I also 

believe there are a number of changes from the 2012 or 2015 reauthorizations that have been properly implemented, including increasing the Bank’s loan loss reserves and accepting electronic payments and documents for all its transactions. If confirmed, I will 

work with the team at Ex-Im and my fellow Board members to 

learn more about the changes required in the 2012 and 2015 reauVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00195 Fmt 6602 Sfmt 6602 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
192 

thorizations required by Congress and ensure Ex-Im is or quickly 

complies with its statutory requirements. 

Q.4. Will you publicly defend the Export-Import Bank against false 

or misleading charges of fraud? 

A.4. If confirmed, I will seek to do so. 

I will also learn more about the Bank’s record and how it responds to potential cases of fraud. If there are false or misleading 

charges about the Bank’s record, I would seek to work with my fellow Board Members, the Bank’s legal team, and also the Office of 

the Inspector General to ensure that honest and accurate rebuttals 

are being appropriately communicated. 

Q.5. Do you agree that the Export-Import Bank’s extremely low default rate, 0.303 percent when last reported this year, is evidence 

that the Bank is carefully monitoring credit risk and external fraud 

risks? If you do not agree for any reason, please offer a detailed explanation. 

A.5. Yes, I agree. Since 2008, the Bank has generated money for 

the U. S. Treasury to support deficit reduction. If confirmed, I will 

remain vigilant to ensure the Export-Import Bank maintains a low 

default rate. 

Q.6. Do you agree that resuming the provision of credit assistance 

by the Export-Import Bank to commercial aircraft, at levels previously supported by the Bank (pre-FY2015, as measured by value 

of exports supported), is essential for the competitiveness of American aerospace manufacturers and their domestic suppliers? 

A.6. Yes, I do believe it is essential, and the Charter is clear that 

financing cannot be denied based on industry or sector. If confirmed, I would review each Board-level transaction individually to 

ensure it is consistent with all statutory requirements, including a 

reasonable assurance of repayment and support of U.S. jobs. While 

there are many factors that affect the competitiveness of American 

aerospace manufacturers, I believe that Ex-Im’s credit assistance 

plays a crucial role in supporting fair competition so U.S. manufacturers are competing on quality and price—not financing on the 

basis of officially supported export credit. Additionally, the small 

businesses that contribute to this industry represent hundreds of 

thousands of jobs supported throughout the supply chain. If confirmed, I will work with the Chair and the Vice Chair to see if we 

can find a way to collect and report this data. 

Q.7. If confirmed, are there any specific policies or procedures of 

the Export-Import Bank that you would work to alter or change? 

A.7. If confirmed, there are no specific policies or procedures that 

I intend to modify, except perhaps to determine a way to collect 

data on the small businesses that feed into larger transactions as 

stated above. I will work with the Chair and Vice Chair to determine if there is an effective way to do this. If confirmed, I am willing to consider changes that support the effectiveness and efficiency of the Bank and that are consistent with its mission as set 

forth by Congress. 

Q.8. If confirmed, would you work to ensure that the comment 

process for environmental and social impacts from projects is propVerDate Nov 24 2008 08:30 Feb 23, 2018 Jkt 046629 PO 00000 Frm 00196 Fmt 6602 Sfmt 6602 L:\HEARINGS 2017\11-01 NOMINATIONS\HEARING\110117.TXT JASON
193 

erly structured and adequately resourced to ensure that comments 

from concerned parties are meaningfully considered? 

A.8. Yes. These considerations are important for every project and 

I will take these environmental and social impact issues seriously. 

Q.9. If confirmed, do you commit to providing all documents and 

materials that the Office of Inspector General requests? 

A.9. Yes, I will provide all requested documents and materials permitted by law. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM JUDITH DELZOPPO PRYOR 

Q.1. Cybersecurity: In light of the major cybersecurity breaches, 

most recently at Equifax, that have affected hundreds of millions 

of consumers in the United States, how robust are Ex-Im’s protections of sensitive financial information? 

A.1. I understand the concern, especially in the wake of recent 

news. I am not familiar, at this point, with the specifics of Ex-Im’s 

IT systems and protection. I understand that the agency processes 

a significant amount of financial information annually and, if confirmed, I would make it a priority to learn more about the protections the Bank has in place and how we can protect against potential cybersecurity threats. 

Q.2. Long-Term Reauthorization: Does the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity? 

A.2. Yes, I do believe a long-term reauthorization provides assurance to the American business community that Ex-Im will be here 

to support them throughout the process. My understanding is that 

many applications considered by the Bank require months—sometimes years—ofreview and due diligence. Without knowing if the 

Bank will be fully operational in the future, companies may be unwilling to start the process of applying for Ex-Im financing right 

now. Should I be confirmed, one of my priorities will be working 

with my fellow Board members to communicate to the business 

community our commitment to a fully functioning Bank. I will also 

work with the Members of the Banking Committee and the rest of 

Congress on the prospects for a long-term reauthorization for the 

Export-Import Bank, prior to the end of fiscal year 2019, when its 

current authorization expires. 

Q.3. Rural/Manufacturing: What else can Ex-Im be doing to make 

sure that small businesses in rural Virginia, places like Marion in 

Southwest Virginia and Emporia in Southside Virginia, learn about 

and take advantage of Ex-Im? 

A.3. I believe it is important not only for small businesses across 

the country, but especially in rural communities, to know about the 

tools Ex-Im offers. While Ex-Im already conducts outreach, we can 

never do enough to help our small business community. Expanding 

outreach to community banks and credit unions, who have the relationships with their local businesses can be important force multipliers. I also believe Ex-Im can do more to work with the local business community to help build awareness. During my time at the 

194 

Overseas Private Investment Corporation, I was proud that we 

doubled the number of small business workshops hosted around 

the country to educate small businesses, including women- and minority-owned about the services available to them from Agencies 

such as OPIC, SBA, USTDA and Ex-Im. I will draw from that experience in my efforts to support the Bank’s outreach to small businesses. 

Advancements in technology are also moving rapidly and the 

Bank must keep pace in order to be responsive to customer needs 

and expectations. Technology provides Ex-Im with tools to conduct 

outreach to more small businesses, especially those in rural areas. 

If confirmed, I look forward to learning more about the Bank’s data 

systems and how Ex-Im can leverage new technologies to expand 

outreach in an effective, efficient manner. 

Q.4. Fraud, Waste, and Abuse: Does the Board require a quorum 

to approve some of the positions that were established to combat 

fraud, waste, and abuse that were part of the last reauthorization 

in 2015? 

A.4. Yes. The 2015 reauthorization established a Chief Ethics Officer and a Chief Risk Officer, positions that play a role in combating 

fraud, waste, and abuse. While the Bank has officials in these positions, formal approval of those appointments requires Board action. 

If confirmed, I would work with my fellow Board Members to 

prioritize the approval of officials to these roles. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM CLAUDIA SLACIK 

Q.1. Do you believe that the Export-Import Bank needs to begin 

quickly processing the $30 billion pipeline of transactions that need 

board approval but cannot be considered because of the present 

lack of board quorum? 

A.1. Yes. If confirmed, I would work with my fellow Board Members to begin carefully reviewing—in expedited fashion—the many 

transactions in the pipeline that would support thousands of U.S. 

jobs. I would review each of these transactions for reasonable assurance of repayment, and thereby ensure Ex-Im is keeping American exporters competitive in the global economy. 

Q.2. Do you believe that American exporters and manufacturers 

have been harmed while the Export-Import Bank is unable to support transactions larger than $10 million? Please offer you views on 

the economic benefits to American exporters and manufacturers 

from addressing the transaction backlog. 

A.2. Yes. As a result of Ex-Im’s inability to fully operate, sales have 

gone overseas resulting in less work for Americans and less revenue for the U.S. Treasury. One example is that as a result of the 

lack of quorum on Ex-Im’s Board of Directors, U.K. Export Finance 

(UKEF) has cut deals to finance Boeing jets that will be outfitted 

with Rolls Royce engines made in the U.K. rather than GE engines 

built in Ohio. When Ex-Im is fully operational, it directly helps 

U.S. manufacturers compete overseas and supports many more jobs 

throughout their domestic supply chains. 

195 

Q.3. Do you believe that any changes contained in the 2012 or 2015 

reauthorizations of the Export-Import Bank have not been properly 

implemented? Please cite any changes you believe have not been 

properly implemented, excluding any changes that are awaiting 

final action by the Board of the Bank because of the present lack 

of quorum. 

A.3. No. To the best of my knowledge, all changes have been properly implemented. I draw this conclusion from my time at the 

Bank, where we worked to implement certain requirements from 

the 2012 reauthorization, as well as the transparent progress link 

that the Bank makes available on its website. 

Q.4. Will you publicly defend the Export-Import Bank against false 

or misleading charges of fraud? 

A.4. Absolutely. 

Q.5. Do you agree that the Export-Import Bank’s extremely low default rate, 0.303 percent when last reported this year, is evidence 

that the Bank is carefully monitoring credit risk and external fraud 

risks? If you do not agree for any reason, please offer a detailed explanation. 

A.5. Absolutely. 

Q.6. Do you agree that resuming the provision of credit assistance 

by the Export-Import Bank to commercial aircraft, at levels previously supported by the Bank (pre-FY2015, as measured by value 

of exports supported), is essential for the competitiveness of American aerospace manufacturers and their domestic suppliers? 

A.6. I believe that we must fully support ALL American exporters, 

regardless of sector, to ensure that they are fully competitive in the 

global economy. Because Ex-Im is demand driven, I cannot commit 

to financing at any specific level, but I will commit that if Ex-Im 

financing is necessary in order to fill a private sector liquidity void 

or to level the playing field due to financing offered by other export 

credit agencies, I will support the financing as long as there is a 

reasonable assurance of repayment so as to protect the taxpayers. 

Q.7. If confirmed, are there any specific policies or procedures of 

the Export-Import Bank that you would work to alter or change? 

A.7. If confirmed, I would like to see a more robust Medium-Term 

Program and a significant increase in the amount of small business 

that is sourced on larger transactions and applied as direct exports. 

More programs to directly support small businesses are also needed. 

Q.8. If confirmed, would you work to ensure that the comment 

process for environmental and social impacts from projects is properly structured and adequately resourced to ensure that comments 

from concerned parties are meaningfully considered? 

A.8. Absolutely. 

Q.9. If confirmed, do you commit to providing all documents and 

materials that the Office of Inspector General requests? 

A.9. Yes, to the extent permitted by law. It is imperative that the 

Bank has a good working relationship with the IG and that any 

196 

documents dealing with waste, fraud, and abuse be provided to 

them on a timely basis. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM CLAUDIA SLACIK 

Q.1. Cybersecurity: In light of the major cybersecurity breaches, 

most recently at Equifax, that have affected hundreds of millions 

of consumers in the United States, how robust are Ex-Im’s protections of sensitive financial information? 

A.1. I understand the concern and I believe them to be quite robust. I understand that all employees are required to do cyber security training each year. When I was Chief Banking Officer 

(CBO), the Chief Information Officer provided weekly updates to 

the senior staff about the latest cyberattack attempts. If confirmed, 

I would encourage the Bank staff to continuously improve upon cybersecurity. 

Q.2. Long-Term Reauthorization: Does the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity? 

A.2. Absolutely. As I traveled around as CBO, and met with foreign 

customers, they constantly raised the uncertainty of Ex-Im’s continued existence as a deterrent to sourcing from the U.S. In addition, other export credit agencies used uncertainty around Ex-Im as 

a tool for them to recruit business into sourcing from their countries rather than from the U.S. A long-term reauthorization would 

go a long way towards addressing this problem. 

Q.3. Rural/Manufacturing: What else can Ex-Im be doing to make 

sure that small businesses in rural Virginia, places like Marion in 

Southwest Virginia and Emporia in Southside Virginia, learn about 

and take advantage of Ex-Im? 

A.3. Small businesses around the U.S., and especially those in 

rural communities, need to know about Ex-Im products that can 

help companies export with confidence. I think enhancements can 

be made to Ex-Im’s existing efforts to conduct outreach to businesses, including expanding the Bank’s partnerships with local 

business groups and other ‘‘boots on the ground’’ who are familiar 

with the businesses in their communities. These entities can be important amplifiers of Ex-Im tools. 

It is also important to make sure Ex-Im is keeping pace with the 

twenty-first century economy, including the tools technology provides to enhance outreach and ease of communicating. I believe it 

is important for Ex-Im to keep pace with changing technologies in 

order to meet customer needs and expectations. Technology can 

also make it easier to reach businesses, including those in rural 

areas. Should I be confirmed, I plan to learn more about the opportunities technology provides to expand outreach in an efficient and 

effective manner. 

Q.4. Fraud, Waste, and Abuse: Does the Board require a quorum 

to approve some of the positions that were established to combat 

fraud, waste, and abuse that were part of the last reauthorization 

in 2015? 

197 

A.4. Yes. The 2015 reauthorization created several new positions at 

Ex-Im, including the Chief Ethics Officer and the Chief Risk Officer. I believe both of those positions play important roles in efforts 

to combat waste, fraud, and abuse. I understand that the Bank has 

officials in those positions. However, I also understand that the 

2015 reauthorization required those appointments to be formally 

approved by the Ex-Im Bank Board of Directors. Should I be confirmed to the Board, one of my top priorities would be to approve 

the appointments of those officials to those roles. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM MARK L. GREENBLATT 

Q.1. My office and other Members of the Banking Committee have 

benefited greatly from the prompt response of the Office of Inspector General (OIG) to information requests and correspondence. If 

confirmed, do you commit to continuing a high level of responsiveness to Congressional requests? 

A.1. Yes, I believe that developing and maintaining a constructive 

relationship with Congress is integral to the success of any OIG. 

I recognize that OIGs have a direct reporting relationship with 

Congress and, if confirmed, I would make such relationships a priority. With that in mind, I commit to maintaining strong lines of 

communication with Congress (as permitted by governing law and 

law enforcement processes), which includes not only continuing a 

high level of responsiveness to Congressional requests, but also 

proactively engaging with Members and staff. 

Q.2. Do you believe it is important for OIG to distinguish in reporting of its investigative work concerning the Bank’s credit assistance 

between cases of Ex-Im employees that are complicit in fraud and 

cases related to external persons or entities that are complicit in 

fraud? 

A.2. I believe it is important for an OIG to be precise in its reporting on all of its work, including how it characterizes individuals implicated in investigative matters. I understand that the current reporting structure in the Ex-Im OIG’s Semiannual Reports to Congress lists Employee Integrity matters (comprising all employee 

cases, including those involving credit assistance) as a separate category from the other categories of fraud (generally committed by 

external persons). I further understand that the distinction between credit assistance investigations involving internal and external individuals (i.e., employees of the Bank versus third-parties) is 

sensitive and, if confirmed, I would be willing to explore additional 

options for reporting such information. 

Q.3. In your testimony, you raised important points about the mandated obligations of the OIG and their effect on the office’s ability 

to conduct other oversight and investigative work. If confirmed, 

will you continue to update my office on the resource needs and capabilities of the OIG as you complete further analysis of the office’s 

workload. 

A.3. Yes, if confirmed, I will further analyze the OIG’s workload 

and update your office on the OIG’s resource needs and capabilities. To amplify on my statements at the hearing, I understand 

198 

from current OIG leadership that 80 to 90 percent of the OIG’s Office of Audit’s work every year focuses on mandated projects that 

have little to do with the Bank’s lending operations or maintenance 

of the Bank’s existing loan portfolio. 

For instance, the OIG is required by statute to issue products on 

the following topics on an annual or biennial basis: 

• the Bank’s financial statements, 

• the Bank’s compliance with the Federal Information Security 

Modernization Act (FISMA), 

• the Bank’s compliance with the improper payments laws, 

• the Bank’s compliance with the DATA Act, and 

• a Risk Assessment of the Bank’s Purchase Card Program. 

Notably, this list is not exhaustive and does not include other 

mandatory one-time requirements or Congressional requests. 

According to current OIG leadership, all of the required products 

limit the OIG’s ability to conduct discretionary assignments that 

would examine the core of the Bank’s international lending operations and maintenance of its loan portfolio, which could grow to 

as high as $135 billion. This limitation could be especially problematic, considering that the confirmation of a quorum of the Bank’s 

Board of Directors is expected to lead to the consideration of roughly $30 billion in new transactions. As I understand it, without additional resources, the OIG would be limited in its ability to oversee 

such new transactions or changes in Bank processes or practices. 

Q.4. Are there other topics of priority for OIG on which you wish 

to elaborate that you were not able to address in written or oral 

testimony? 

A.4. One priority is eliminating barriers to the OIG’s access to information and records. I understand that, in the past 2 years alone, 

the OIG has publicly reported three cases in which it has encountered difficulty in obtaining timely access to information and 

records. For instance, in its Semiannual Report to Congress dated 

March 31, 2017, the OIG reported that the Bank failed to produce 

a legal analysis that was directly relevant to an ongoing evaluation 

with significant Congressional interest. According to the OIG’s report, the Bank produced the document only after the exit conference for the evaluation, which was approximately 8 months after 

the OIG had requested the materials. The report stated further 

that this resulted in a 1-month delay of the issuance of the evaluation. 

Similarly, the OIG noted in an audit dated September 29, 2017, 

that the Bank was unable to produce validated data in a timely 

manner. According to that report, it took more than 4 months for 

the Bank to produce the requested data and, as a result, the OIG’s 

sample for that audit was selected from unvalidated data. 

Obtaining timely and complete access to information is integral 

to the OIG’s ability to perform its responsibilities, and therefore, if 

I am confirmed, I will work with the Bank to eliminate any barriers and delays to the OIG’s access to information and records. 

Moreover, if confirmed, I will keep this Committee apprised in the 

event that access problems continue. 

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RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM MARK L. GREENBLATT 

Q.1. Cybersecurity: In light of the major cybersecurity breaches, 

most recently at Equifax, that have affected hundreds of millions 

of consumers in the United States, how robust are Ex-Im’s protections of sensitive financial information? 

A.1. I am not an employee of the Bank and, therefore, I am not 

privy to all of the relevant information concerning the effectiveness 

of Ex-Im’s protections of sensitive financial information. That said, 

I understand that the OIG issued an audit examining the effectiveness of Ex-Im’s information security program for fiscal year 2016. 

That audit report stated that, although Ex-Im addressed several of 

the challenges identified during previous FISMA audits, its information security program and practices are not effective overall 

when assessed against revised Department of Homeland Security 

reporting metrics. The report stated further that Ex-Im has not effectively implemented a mature information security program and 

contained nine new recommendations and two partially re-issued 

recommendations for corrective action from prior years. I recognize 

that cybersecurity and the protection of sensitive financial information is an important issue and, if confirmed, I would expect to continue exploring these issues in the future. 

Q.2. Long-Term Reauthorization: Does the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity? 

A.2. As I noted above, I am not an employee of the Bank and, 

therefore, I am not privy to all of the relevant information concerning whether the lack of a long-term reauthorization hurt American businesses because of the lack of certainty in Ex-Im’s longevity. I understand, however, that the Ex-Im OIG has expressed 

concerns in the past about the uncertainty facing the Bank in general and the impact it has had. For instance, the OIG reported in 

its most recent Semiannual Report to Congress that uncertainty 

about the future of Ex-Im, along with managing the effects of the 

lapse in authorization and the lapse in Board quorum, is the top 

management challenge facing the Bank. 

Q.3. Rural/Manufacturing: What else can Ex-Im be doing to make 

sure that small businesses in rural Virginia, places like Marion in 

Southwest Virginia and Emporia in Southside Virginia, learn about 

and take advantage of Ex-Im? 

A.3. I understand that the OIG recently announced that it is initiating an evaluation of Ex-Im’s small business strategy and related 

policies and procedures. My understanding is that the objective is 

to assess the effectiveness of Ex-Im’s small business policies, procedures, and marketing strategy, including the use of brokers to meet 

the 25 percent requirement in Ex-Im’s charter. This evaluation 

should address the strategies impacting small businesses across 

the United States. If confirmed, I would expect to continue these 

efforts and update you on the OIG’s findings and recommendations 

for corrective action, if any. 

Q.4. Fraud, Waste, and Abuse: Does the Board require a quorum 

to approve some of the positions that were established to combat 

200 

fraud, waste, and abuse that were part of the last reauthorization 

in 2015? 

A.4. Yes, I understand that the 2015 reauthorization requires that 

the Board must have a quorum to approve the positions of the 

Chief Risk Officer and Chief Ethics Officer and to commence a fully 

operational Risk Management Committee. 

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ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD

LETTERS IN OPPOSITION TO THE NOMINATION OF SCOTT GARRETT 


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LETTER IN SUPPORT OF THE NOMINATION OF KIMBERLY A. REED 


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THE BIGGEST BENEFICIARIES OF THE EX–IM BANK 


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EXPORT-IMPORT BANK: PROPAGANDA VERSUS THE FACTS 


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BOEING HELPED CRAFT OWN LOAN RULE; CELEBRATING OUR 

INDEPENDENCE—FROM THE EXPORT-IMPORT BANK 


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KEY ARGUMENT FOR EXPORT-IMPORT BANK INVALID 


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