Please ensure Javascript is enabled for purposes of website accessibility

Treasury Picks 3 Firms to Advise on Airline Loans

By Dave Kovaleski - Apr 3, 2020 at 10:04AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

PJT Partners, Moelis, and Perella Weinberg Partners were tapped.

The U.S. Treasury has selected three financial firms to advise the government on distributing loans to the airline industry as part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.

At a press briefing Thursday, Treasury Secretary Steven Mnuchin said PJT Partners (PJT 0.94%) and Moelis (MC 2.40%), two investment banks, and financial services firm Perella Weinberg Partners will act as financial advisors. Each will advise on a different area, Mnuchin said: PJT on passenger airlines, Moelis on cargom and Perella on national security. He added, "and there will be three law firms, which we will announce shortly."

Two airport workers standing on the tarmac with an airplane in the background

Image Source: Getty Images

Mnuchin said at the press briefing that the fees to the banks will be small.

"I want to thank them," said Mnuchin. "They are all working for basically very, very little money. They couldn't work for free, so they've agreed to basically work for what they would sign up to work for a charitable organization. So again, no big fees to bankers."

The CARES Act provides about $25 billion in grants to commercial airlines, about $4 billion to cargo carriers and approximately $3 billion for contractors.

"Anything we do with the airlines, they have to maintain substantially all of their employees, any money we provide them will go to pay their employees," Mnuchin said. "There are very strict requirements built into that bill."

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends PJT Partners. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PJT Partners Inc. Stock Quote
PJT Partners Inc.
$74.15 (0.94%) $0.69
Moelis & Company Stock Quote
Moelis & Company
$47.78 (2.40%) $1.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.