Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Three Wall Street firms have been tapped to work with U.S. Treasury Secretary Steven Mnuchin as the government works to provide cash to the battered airline industry, which the coronavirus has brought to a standstill.
"PJT partners is going to do the passenger airlines, Moelis & Co. is going to do the cargo and contractors and Perella Weinberg will handle national security and there will be three law firms, which we will announce shortly," Mnuchin stated.
Mnuchin stressed any funds being provided to the airlines come with strict bipartisan guidelines agreed upon in the bill.
|AAL||AMERICAN AIRLINES GROUP, INC.||20.32||+0.03||+0.15%|
|DAL||DELTA AIR LINES, INC.||42.38||+0.16||+0.38%|
|UAL||UNITED AIRLINES HOLDINGS, INC.||50.48||+0.65||+1.30%|
|JBLU||JETBLUE AIRWAYS CORP.||15.36||+0.20||+1.32%|
|LUV||SOUTHWEST AIRLINES CO.||49.13||+0.71||+1.47%|
"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" he explained.
The rescue package is a "not a bailout," Mnuchin said. "These are national security issues, we want to keep our airlines intact."
While the firms will be compensated, Mnuchin said, they'll work for a fraction of what they'd normally charge.
"They are all working for 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" Mnuchin noted.
BlackRock, the world's largest asset manager which is run by Larry Fink, will assist the Federal Reserve with its purchases of commercial mortgage-backed securities.
In a statement to FOX Business last week, a firm spokesperson said, "BlackRock is honored to have been selected to serve the US government in this way."