The U.S. Treasury Department hired lawyers and Wall Street bankers to serve as consultants regarding billions of dollars’ worth of aid to the defense, cargo, and airline sectors, sources said.
The aid advice followed the approval of a $2.2 trillion stimulus bill last week to ease the economic fallout amid the pandemic. The virus has a death toll of more than 5,000 in the United States alone.
PJT Partners Inc. will advise the Treasury on talks with airline companies, for which $50 billion is allocated, while Moelis & Co will advise regarding aid for the cargo sector.
Perella Weinberg will advise the Treasury on talks with companies part of industries that are essential to national security. The stimulus bill, also known as the CARES Act, provides $17 billion for these companies.
Law firm Cleary Gottlieb Steen & Hamilton LLP will also be advisors to the Treasury, sources said.
The new legislation necessitates warrants, equity, or other financial compensation for taxpayers for the $25 billion in loans.
The Treasury has also asked airline companies to suggest financial instruments in their applications for grants.
Airline companies have stopped many of their flights as part of the widespread travel bans, while a decrease in flight bookings also weighed in on the industry. The International Air Transport Association reported its forecast of a $250 billion decline in revenue in 2020, urging governments to give immediate financial support to the industry.