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Fred P. Hochberg: --- where Dave Cody stands on the corporate tax rung? We're going to work on that but if you need clarification come and see me afterwards I think we can provide that. I found it really an exciting day. I think we had a lot of consistent things. Peter Loscher who is the Chairman of Siemens globally talked about innovation and bringing it into projects. I think we took a look at the range of exports from masking tape to solar panels to airplanes of all sizes, sugar beat equipment's and I think we could see that America's competitive edge is clearly as strong as ever and we are trying to move at the speed of business. I have a special guest this morning who's going to speak first and then we will have our rest of the program. Congressman Miller is from California, the 42nd district. He is Chairman of the House Financial Services Committee on International Monetary Policy and Trade. This is the committee that reviews and provides oversight of the export/import bank, it provides oversight of all international trade and policy issues. Congressman Miller is a businessman as he said to me earlier today. He is both a real estate developer and a bootlegger or in the liquor business excellent qualifications as I said to be member of congress. He has come up with a couple of new products. He is an investor. We're going to get it on the East Coast soon of a new *** that was made of electrolytes that keeps you hydrated and lets you possibly drink more of it. So this is an example of taking an innovative idea and bringing it to market. So we have a Chairman who understands at his heart what business is about and how to bring innovation and I'm hoping Congressman, Mr. Chairman that we can also have export there once it gets to market. Alright. We stand ready. Yesterday we talked about Pac-Van which is the small -- well, larger than Boeing, Airbus, Bombardier and Embraer because the planes are smaller. It is about 2 to 3 miles just outside of the district but who knows with redistricting if you're looking they may be in your district before you know it but I'm sure many of their employees live in your district. So they are a great company. He has been as I mentioned enormously knowledgeable. His staff has been spectacular to work with, and like Tom Donoghue he likes the fact that the bank makes money. So let me give you Chairman Miller giving new meaning to Miller Time. [Applause]. Chairman Miller: Thank you Chairman Hochberg. So a developer, a bootlegger and a developer I mean and a congressman what can you say? I'm a business person. That's what I do. So we look at the issues and we say how do we compete globally and level playing field. We all think trade is good, we all think it's great when we're exporting but when businesses are put to a disadvantage because other countries are willing to finance to the different level than we do putting their businesses into an advantage into over what our businesses have is a problem. Now, what I don't want to have happen, you heard about the debate over Freddie and Fannie we had hearings all day yesterday on that because they look at the GSE as something the government that and government subsidized and some people think we put too many taxpayers at risk although they're performing better than the rest of the environment out there in the millennium but we have to say EXIM is completely different. EXIM makes money for the federal government and does not put the federal government at risk but we have to say, how do we make that a better tool useful for you. A few ways I think we need to do we need to look at few issues, we need to raise the amount we're able to lend. We think we need to probably increase it by about $20 billion per year to get you up to about $160 billion to be able to put the necessary resources into your industry to be able to compete globally we also think there's a area we need to look at in this content. We do respect the principles that we need to provide American jobs but with a global economy we have today. We have to say, how does that impact you on content? Are you able to compete globally? Are you able to go out with China, Brazil, Canada, other countries and say, can we compete with their industry based on the mandates that are placed upon you that might appear to be unreasonable. Now, I like the title government at the speed of businesses. You're lucky we don't move that fast because we would screw things up really quick But in certain areas on this bill, April 13th we're going to have a bill. We're marking it up. We're going to have it for the Chairman next week. Administration hasn't come along with their recommendations but at this point in time I don't think we can wait. I think it's something we need to push out of the house and get to the senate, get it done in time and we need to fill the board that's what we have to do. But businesses have not been shy and I encourage you do not be shy. If there is something we need to look at you need to come to us and talk to us about it. We found that a lot of the good information from some contents are huge, imports are good, economic impact is something we have to address. The emerging economies. Things are changing. Now, we can't go back 20 years ago and say, what works will work today. We can't go back 10 years ago and say, what worked will work today. We have to say what are we looking at in the future and how do we prepare for that future and how do we preapre for the future, provide flexibility for EXIM Bank to deal with you yet take the burden off of their back on making certain decisions. Now, we understand they have flexibility on impact as it applies to content but the burden should not be on them, they should be encouraged by the individual at congress who have the ability to give direction on where they should go and in order to do that we need the input from you. Now, will the economy be the same next year as this year? No. Will it be the same two years as it was next year? No. So how do we create a system that allows flexibility, allows you to change your business model as necessary to deal with products within your business model and adapt that to a global nature and be globally competitive and we have to do that even though we're looking at 2% of the total exports if we're dealing with 8.9% unemployment if you could impact that total unemployment by 2% it's huge. So is a hundred billion adequate for the future? I don't think so. Also the technology that we have to deal with the EXIM Bank they're kinda dinosaurs. I have a son who's an FBI agent and I looked at how the FBI and CIA used to operate. They could not even coordinate with each other nor could they communicate with each prior to 9/11. We've changed that. Now, we have to say they have to have the current technology necessary to expeditiously perform at a level you need to perform at and we don't have that today yet we don't want to go through the appropriation's process knowing that we have a huge budget deficit. We have to say how can we do that internally with existing revenues coming into EXIM before they're generated back to the treasury then sent back to EXIM. We have to try to find a way to take those funds of about $20-26 million in technology to put them at a level of process that they should be to adequately represents you and process the loans that you need processed. But when you have the economies and some of these developing nations growing as they are today what we don't want to have happen is have you as business people put at a disadvantage because other countries China, even Canada close by give their business the advantage over you in content and other things that you do not have and that's what we need to address. How can we be more competitive? How can we deal with the emerging economies especially as it applies to lending? Many banks in our country when you go to them and say, I want a loan for a product in Brazil they say, yeah we have limit caps. We don't want that to obstruct you from building up a new business. We want EXIM to fill that void and encourage you in those areas if nothing else to be able to get into marketplace, actively compete and be at the level of every other country. We cannot allow what's happened into the past to take in or affect you in the future. So although the house is going to move quickly in the senate we think they're going to be receptive to what we do once we get it to them. So our goal is to get it to them as quick as possible. Now, we are not going to wait for the administration to come through with the proposal and I'm not criticizing the administration. I'm saying we need to move expeditiously. If the administration comes with some good ideas or if after the bill is presented we would put up next week. There are some other alternatives and ideas we haven't taken into consideration although we think we've done a fairly good job we want to hear that. We can always do a Manager's Amendment at any point to the bill to modify the bills that goes through the process. But what we want to do is when we're through we want you, the business sector, to be able to compete globally and have a financial arm that backs you up and encourages you and supports your needs and get you into the market you need to be involve in. So I'm going to say that -- Leslie stand up. She's my staff director and when you come you'll generally meet her, sit down. That's enough. [Laughter]. And you know she writes great speeches and I never read one of them. I love it because nothing worse than hear the politician well, on the fourth we're going to do this I mean that gets kinda boring, especially from bootlegger who was possibly drunk last night anyway so what do you know? But want to be responsive to you and I don't want you to think that once a bill is put out that that's the end of game for four more years because we're going to do this again in four years. But if something's not working for you, if you come back and say you know we have a problem and EXIM would like to do this but you know we've never gotten this before come to us with the issue. The Chairman and I can meet anytime, we can have hearings at any time and it benefits him if we can encourage him. You know what that means. I wanna take the burden off, off of them and place it where they belongs and if we don't know what we can do for you next year or the following year because things will change. If you don't tell us what we can do then we can't benefit you. So I know most business people are not shy if they're encouraged. So don't be shy. If there's something that we missed, something that's not working or something that needs to be modified or adapted in the future, please let us know and we'll be happy to have a hearing on it. I know our Chairman is happy to be responsive in areas that we can to encourage exports and make your job better than it is today. So our goal is to be globally competitive, create jobs in this country and God willing you might even make a profit in the process and then have to pay some taxes to the federal government and we might make a buck too. So are we open this for questions or we just I might say imminently what do you want to do? Okay. Do you have any questions? I won't speak to others before I'll answer your questions. If I can't Leslie can. God bless you. I'm outta here. [Applause]. Thank you. That was great. Thank you so, so much. Fred P. Hochberg: Thank you Chairman Miller. Thank you for making time in your schedule to come and join us today and hear directly about what you're thinking and the committee is thinking in terms of the reauthorization of the bank, something I know everybody here is keen and interested in. As the Chairman mentioned government at the speed of business is about accountability, it's about measurement and it's about being responsive to our customers. So one of the things I wanna do in speaking of customers we made a number of commitments last year, a number of policy and program changes that we said we're going to implement and I wanna give you that update. One was supply chain financing. James McNerney talked about it yesterday. We have a breakout session this morning, later today on that. This is really a way we see that many small businesses that are not directly exporting but are indirectly exporting. Our first two clients are Case New Holland and Caterpillar. So if you or one of your colleagues is selling to a Case New Holland or a Caterpillar and we're hoping to sign up many more companies in the next few months. They can get advantage of the liquidity and access to capital as though they were a direct exporter. Currently we're working with JP Morgan and Citigroup and we've got about $500 million in this program so far and I just wanna give a particular round of applause to Robbie [Inaudible], Charles Tansey and the entire team in the Small Business Group for moving these project well. Let's give them a round of applause. [Applause]. Last year we also talked about Solar Express reformulated it's now called Renewable Express. We have 70 transactions we've done about $44 million. We're forecasting or anticipate about a $150 million more in the pipeline. The first project is going to Italy, Belgium, Korea and Canada. I think this is going to be a good pilot program in terms of other ways that we can cut transaction times, reduce the amount of red tapes, we can get answers more quickly. I really want to thank Craig O'Connor and his entire team for the great work they've done on that. [Applause]. One of the other things we were able to adjust in the past year was content for small businesses for small business transactions that are short term less than a year; we expanded the ability of what constituted US content. Those of you who are born since 1968 that was the last time we address this issue. It was a mere 43 years ago so we thought it probably was not overdue for a revitalization and a review. We've got a lot of good feedback from our exporters, Luis Arguello who is on our advisory committee is one such company that's using it and I really want to thank Tom Cummings, Diane Farrell and Jim Cruse for helping moving all that for us. Thank you, Diane. [Applause]. Just this week we launched a product called Express Insurance. This is a product for new customers that if you are selling overseas we will be able to provide you with a turnaround time within five days up to $300,000 per customer. I was with Walter Kosciow this week and he had a meeting with the insurance broker and I said, "Walter, how is it going?" And he said well, if I can get back to my desk early enough today I'm going to work to approve the first transaction we got. So we did approve the first transaction we got. We did in two days not five days. It's a company called FHC. It's a medical supply in Bowdoin, Maine and we have given them a quote within two days. We're hoping they'll take up. So those of you who are looking for insurance particularly up to $300,000 per customer the pilot is up and running and I wanna really, really thank Walt and the entire insurance team for moving quickly on that. [Applause]. Streamlining. government at the speed of business I said is not just a slogan it's how we're trying to put people together, put together the deal teams, put together your relationship manager, the credit officer, the legal team so we can work much more quickly in getting you an answer and finding a way to get to yes and get to yes more quickly. This is a major project of the bank and it's part of an ongoing work we have it's not sort of a one stop thing and this was really a championed by Alice Allbright, John McAdams, Jeff Adamson and many, many more people at the bank. So let's give them a round of applause as well. [Applause]. Yesterday speaking of banks when I talked about the transaction with Infinia I mistakenly relied upon the CEO of Infinia to list all the team members. So there are two people I did leave out. I contacted them separately this was Carla Lawson and Jessica Farmer. Oh, my God. Excuse me. So Carla and Jessica. So let's just give them a round of applause which I missed yesterday. [Applause]. We also talked a little about global access, our program to reach and to travel around the country, to educate more small business owners about how we can provide tools and products for them. We've done about seven so far I think Diane and Bijan did one in California this past week. We have one planned on April 11th in Long Island with Congressman McCarthy, we're going to be in Charlotte, North Carolina on June 3rd with Senator Kay Hagan and we're trying to do one with Chairman Miller. So we've got another planned coming forward. If working with your local chambers, governors or your members at congress and you like to have us do one in your district, please contact Charles Tansey, Charles.Tansey@exim.gov. You can contact him directly Charles.Tansey@exim.gov and we will be looking to do more of those. In addition, we're also going to do a lot of larger transactions. So last year our largest transaction was in Papua New Guinea for $3 billion. We are focused on small business but I see that Orlando is here from Reficar and this year I think we will probably see the largest increase in our business. It's probably going to be in the country of Columbia working with Echo Patrol and Reficar and I'm very happy that they are here. We got to visit them last year. So thank you for your faith in us. [Applause]. The rest of the day let me just give you a quick highlight of where the day is going. We are waiting for our-- I'm not just going slow we're waiting actually our next speaker Larry Summers is also just-in-time speaker. He's on his way in from the airports but I didn't want to delay. Lawrence Summers will be talking to us about the global economy where things are going. We had planned on time for questions we may have to cut a little short because we're running a little tight. We will then be followed by Judy Woodruff who I see is already here who will be leading a panel with Anil Ambani and journalism academics so we'll have a good conversation in terms of some of the global perspectives. We'll then be followed with some breakout sessions. We'll have three of those and then our final speaker our luncheon speaker is going to be Vikram Pandit the CEO of Citigroup. One of the things that Citigroup has been a leader on is on the Equator Principles and I'm very pleased that the bank has adopted the Equator Principles chaired by Citigroup and it's a way that we can further align what we're doing with the best environmental practices. It goes further and continue along in the work we've done on the Carbon Policy in terms of finding a way that we can make sure that as we create jobs and help countries power up we're also doing it in a responsible way and looking at the portfolio and doing this in a way that if we think about what's done on the world in the last months not few months, months, we need to take this very, very seriously. So I'm very happy that we as a bank adopted the Equator Principles and we'll incorporate them more fully in a more integrated way into our work. So I am going to pause for a moment and let you talk amongst yourselves for about two minutes and as soon as Dr. Summers comes we will continue. If you can just stay here that we won't lose any more time on the program. So thank you. Be back in a moment. (applause) (end of presentation)