This article first appeared at The McAlvany Intelligence Advisor on Friday, March 27, 2015:
In 2012 and 2013, the Export-Import Bank unanimously agreed to guarantee loans by Lockheed Martin to a small private Australian satellite company called NewSat, whose president was ecstatic at the news. NewSat’s CEO Adrian Ballintine celebrated:
It is fantastic to receive the support of the U.S. Ex-Im Bank. They are backing our … satellite with a direct loan, with a favorable low-fixed interest rate and long tenure.
The deal is an Australian first for Ex-Im Bank and a major milestone towards the launch of Australia’s first commercial satellite.
His was a company worth $50 million before Ex-Im guaranteed $304 million in loans by Lockheed Martin to provide it with a satellite designed to reach all across the South Pacific and rake in millions. Ex-Im was simply following its charter: make loans no one with any sense would consider making.
Of course, that isn’t exactly what the bank’s charter really says;