Political Quotes

Pat Toomey: “If you have a loan that is made or guaranteed by the Federal Government through a vehicle like the Ex-Im Bank or more…”

On the recordFebruary 2, 2016
If you have a loan that is made or guaranteed by the Federal Government through a vehicle like the Ex-Im Bank or more directly, and you have two loans, identical in all terms, but in one case the borrower was a large multinational AAA corporation, and in another case the borrower is a small undercapitalized startup in a politically unstable Third World country, would you use the same discount rate to discount those identical cash flows from those very different borrowers?
Said by
Pat Toomey
Republican · Pennsylvania

Editor's note · Context

Toomey illustrates the need for different discount rates based on borrower risk.

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