Boeing, the biggest beneficiary of the U.S. Export-Import Bank, watched its stock drop by the biggest margin in months following House Majority Leader Eric Cantor’s primary election defeat Tuesday.
A federal agency that subsidizes American exports, the Export-Import Bank regularly subsidizes Boeing’s foreign sales. Just last month, Boeing announced the bank would underwrite $10 billion in new business for the aviation giant.
Cantor, who brokered a deal for the Export-Import Bank’s reauthorization two years ago, had been non-committal about renewing the bank’s charter in advance of the Sept. 30 deadline for Congress.
Chris Krueger, a senior analyst for Guggenheim Securities LLC, called Boeing the “biggest loser” following Cantor’s primary election defeat Tuesday, according to Bloomberg News.
Boeing Co. stock dropped 2.3 percent yesterday, its biggest slide since April.
With the defeat of Cantor, Export-Import Bank subsidies have lost “a major advocate,” explains Diane Katz, a research fellow in regulatory policy at The Heritage Foundation. “Yesterday’s dip in Boeing stock illustrates just how invested some of these corporations are in maintaining their government favors.”