Banking panel rejects Trump nominee to lead Export-Import Bank

Tom Williams | CQ Roll Call | Getty Images

Former Rep. Scott Garrett, R-N.J., nominee to be president of the Export-Import Bank, testifies during a Senate Banking, Housing and Urban Affairs Committee hearing in Dirksen Building on Export-Import Bank nominations on November 1, 2017.

A Senate panel has rejected President Donald Trump’s nominee to run the Export-Import Bank.

Two Banking Committee Republicans, Tim Scott of South Carolina and Mike Rounds of South Dakota, joined with Democrats to shelve the nomination of former GOP Rep. Scott Garrett of New Jersey to head up the bank, which provides loans, credit insurance and loan guarantees to help foreign buyers purchase U.S. exports.

It has many GOP critics who say it distorts markets and that too much of its help benefits large corporations like Boeing. Some U.S. businesses, including airlines, say the bank effectively subsidizes foreign competitors.

Garrett voted to shutter the bank when serving in Congress and didn’t apologize for his opposition when testifying at his confirmation hearing.

The bank has significant bipartisan support in Congress.