UPDATE 2-U.S. trade bank renewal petition succeeds in House

(Adds details on Senate legislation)
By David Lawder
WASHINGTON, Oct 9 (Reuters) - A U.S. House of
Representatives petition to revive the shuttered U.S.
Export-Import Bank drew enough support on Friday to force a vote
as soon as Oct. 26 but the effort to renew the trade bank's
charter faced obstacles in the Senate.
The 218 representatives, including 42 Republicans, who
signed the so-called "discharge petition" - a procedural
maneuver that has been successful only a handful of times in the
past century - effectively overrules House Financial Services
Committee Chairman Jeb Hensarling.
Hensarling has declined to move legislation on the bank's
charter, which expired on June 30, and said the petition sets a
"very dangerous precedent" for the Republican Party, which is
embroiled in a divisive leadership struggle in the House.
"At a time when our Republican conference is divided, this
will divide it even further," Hensarling said in a statement.
EXIM backers hailed the move as a breakthrough to reopen the
bank, which offers loans, loan guarantees and trade insurance
that helps foreign customers buy U.S.-produced goods and
services.
Some Republicans and outside political groups have targeted
the bank as an example of "corporate welfare" for large, wealthy
companies such as Boeing (NYSE:BA) BA.N , Caterpillar (NYSE:CAT) CAT.N and General
Electric GE.N . Supporters say it allows U.S. companies to
compete overseas, and produced $675 million in revenue for
federal coffers last year.
The bank has been unable to write new business for more than
three months, and several companies have announced the loss of
export contracts due to lack of EXIM financing. GE has agreed to
move manufacturing jobs to France, Canada, Britain, Hungary and
China to gain access to those countries' export finance support.
Senate Majority Leader Mitch McConnell is among those who
oppose renewing the trade bank, and has already dismissed the
idea of taking up the renewal bill expected to pass on Oct 26.
"The Senate is not going to spend a week on a bill that the
leader doesn't support," McConnell's spokesman, Don Stewart,
said on Friday.
However, the House EXIM bill would match word-for-word a
measure passed by the Senate in July as an amendment to a
long-term transportation bill. That bill was never taken up by
the House, but the 65 Senate votes it collected indicates that
the EXIM provision could likely be attached to another
transportation spending bill needed by the end of October.