Congress Must Ensure Financial Advisors Brought On By Treasury Department Put Taxpayers’ Interests Before Donald Trump.
READ: U.S. Treasury taps Wall Street firms for aid advice: source (Reuters)
WASHINGTON, D.C. – Late last night it was reported that Moelis & Co. has been brought on by the Treasury Department to help oversee the $8 billion bailout fund for air cargo companies created under the CARES Act. Company Founder Ken Moelis has previously represented Donald Trump even being referred to as “Trump’s Banker.”
In response, Kyle Herrig, president of Accountable.US, released the following statement:
“It’s no coincidence that Trump’s banker has been brought on to manage Trump’s corporate bailout package, given this administration’s history with helping the President’s friends benefit from government actions. Congress must make sure that Moelis and the other financial advisors brought on to oversee this program are putting taxpayer interests first. Anything less is a dereliction of duty during this crisis.”
KEY EXCERPT: Reuters:
The U.S. Treasury Department has hired Wall Street bankers and lawyers to advise on providing tens of billions of dollars in aid to the airline, cargo and defense sectors, people familiar with the matter said on Wednesday.
The appointments come after U.S. lawmakers approved a $2.2 trillion stimulus bill last week to mitigate the economic fallout of the coronavirus pandemic, which has killed more than 5,000 people in the United States and shut down large swathes of the country’s economy.
PJT Partners Inc (PJT.N) will advise the Treasury on its negotiations with the airlines, the sources said. The stimulus bill, known as the CARES Act, provides for up to $50 billion in aid to airlines, half of it in loans and loan guarantees and half of it in grants.
Moelis & Co (MC.N) will advise the Treasury on its negotiations with companies in the cargo sector, for which $8 billion has been allocated, to be split equally between loans and grants, according to the sources.
Perella Weinberg will advise the Treasury on its negotiations with companies that are active in industries important to national security, such as Boeing Co (BA.N), according to the sources. The CARES Act has allocated up to $17 billion for these companies.
Law firm Cleary Gottlieb Steen & Hamilton LLP will also be advising the Treasury on the negotiations, the sources said.