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Reports US

US stock market daily report (July 18, 2014, Friday)

July 21, 2014, Monday, 05:31 GMT | 01:31 EST | 10:01 IST | 11:31 SGT
Contributed by Millennium Traders

In 1934, during the Great Depression, an institution was created during President Franklin D. Roosevelt’s New Deal - the Export-Import Bank. Most Americans have never heard of the bank. Supporters of the bank say it helps keep U.S. companies in business; puts Americans to work, helps American companies compete with foreign rivals that receive subsidies or other financial assistance from their own governments. Without help from the bank, U.S. businesses could lose out to Chinese, European and Russian companies.

Critics on the other hand say the bank is a form of corporate welfare, run mainly for the benefit of large politically-connected firms. If the House of Representatives fails to reauthorize its charter before the end of September - at which time the current law authorizing the bank expires - the bank could be out of business. In the banks corner is the Obama Administration as well as most Democrats, who’ve often been at odds with corporate America. If the Democratic-run Senate had its way the bank would live on.

The institution has been regularly rechartered every few years - sometimes with just a voice vote - throughout most of the history of the Ex-Im bank - as was referred to as. The Ex-Im bank has faced little scrutiny. The bank reportedly supports over 200,000 jobs. The Ex-Im bank’s job is to promote U.S. exports by providing loan guarantees, credit insurance and in some cases - even direct loans to foreign companies that buy American goods and services.

Inside the nation’s capitol in Washington, DC, powerful corporate lobbyist are in a frenzy and the normally devout ally of business - the Republican party - stands divided over a little-known government-run bank that helps companies sell products to foreigners. Although many Republicans in the lower chamber support the bank, they may be outnumbered by a large swath of conservatives infused with Tea Party support.