Biden's nomination of former Republican Congressman draws flack

In a move that has angered progressive Democrats, President Joe Biden nominated former U.S. Representative Spencer Bachus III to the Board of Directors at the Export-Import Bank of the United States (EXIM).

The decision has drawn criticism from New Jersey's Lisa McCormick, who described the news as "disturbing as much as it is disappointing."

Citing Bachus's previous statement that "Washington and the regulators are there to serve the banks," McCormick found this perspective troubling, especially as President Biden aims to solidify support from progressive Democrats in the upcoming re-election bid.

"Bachus's history as the U.S. Representative from Alabama and chair of the House Committee on Financial Services leaves no doubt that he is not on our side," said McCormick, who has asserted that the vast majority of Americans are victims in a class war.

The gap between the rich and the poor in the United States has been widening for decades. In 2021, the top 1% of earners in the US captured 32% of all income, while the bottom 50% of earners captured just 12%. This means that the top 1% of earners earn more than 25 times as much as the bottom 50% of earners," said McCormick. "Working-class Americans need someone to look out for us but for reasons that defy logic, President Biden nominated a right-wing former Republican congressman."

In 2007, McCormick said Bachus faced accusations of insider trading, with claims that he made trades based on non-public information received during private briefings on the financial crisis. The Office of Congressional Ethics ultimately found no evidence of insider trading violations, but the incident has resurfaced in discussions around his nomination.

In 2008, as the financial crisis was unfolding, Congressman Bachus was trading stocks and betting the markets would fall further.

"Bachus was in Congress throughout the 1990s, the time of reckless financial industry deregulation that led to the financial crisis of 2008, which caused widespread economic hardship and job losses many of us are still feeling today," said McCormick.

Harvey Pitt, whose stewardship of the Securities and Exchange Commission was nothing short of disastrous before he resigned in disgrace, dismissed the allegations as inaccurate and laughable. Another former SEC chairman, Roderick Hills, attributed the accusations against Bachus to a factually inaccurate book and a misleading '60 Minutes' segment.

Bachus, a Republican, previously served on the EXIM Board from May 9, 2019, to July 20, 2023. The board oversees the approval of loan applications and major transactions, as well as the bank's management and financial performance. Board members receive a yearly compensation of $260,000 along with benefits such as health insurance, retirement contributions, and travel expenses.

The Export-Import Bank of the United States is the official export credit agency of the U.S. federal government, facilitating financing for U.S. exports when private sector lenders are unable or unwilling to do so.

Bachus's nomination has raised eyebrows not only due to his political affiliation but also because of past statements, such as his remark in 2009 about working with socialists in Congress and his 2010 assertion that "Washington and the regulators are there to serve the banks."

Critics argue that such perspectives do not align with the progressive agenda that many Democrats are pushing for in the current political landscape. McCormick said Biden's action reflects how "Democratic party bosses are tone deaf, dumb and blind" to the wants, needs, and desires of the Democratic electorate.

As the nomination process unfolds, it remains to be seen how Democrats, particularly those on the progressive front, will respond to Bachus's potential return to the EXIM Board.