Private equity firm with ties to Kushner asks Trump administration to relax rules on loan program: report

 

A co-founder of Apollo Global Management, a private equity firm with financial ties to White House adviser Jared KushnerJared Corey KushnerAbraham Accords: New hope for peace in Middle East Tenants in Kushner building file lawsuit alleging dangerous living conditions Trump hosts Israel, UAE, Bahrain for historic signing MORE, asked the Trump administration to ease provisions in the stimulus bill to benefit their company, according to an email obtained by NBC News. 

NBC reported that the email was sent by Apollo's co-founder, Mark Rowan, according to a source close to Kushner. The source said there was "nothing remarkable" about the email that was sent to the White House adviser. 

Unlike the dozens of other companies Kushner receives proposals from, Apollo made a $184 million loan in 2017 to Kushner Companies, the real estate company in which Kushner, President Donald TrumpDonald John TrumpBubba Wallace to be driver of Michael Jordan, Denny Hamlin NASCAR team Graham: GOP will confirm Trump's Supreme Court nominee before the election Southwest Airlines, unions call for six-month extension of government aid MORE's son-in-law, retains an interest.

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Rowan and his firm made a recommendation about a $100 billion loan program announced by the Federal Reserve to backstop lenders and investors, asking them to fix their requirements so their higher-risk loans can qualify. The loan program is an effort to get cash to flow into the financial system amid the economic fallout of the coronavirus pandemic.  

According to the news source, Apollo Global Management does not qualify for the lending program, they are "higher risk and lower rated." 

"There has been no MORAL HAZARD. We have a totally unique situation,” the email read. The phrase is an apparent nod at the 2008 financial crisis, in which critics called it a “moral hazard” to bail out the banks who made bad investments, according to the report from NBC. 

On Friday, Bloomberg reported that bank executives who were concerned about the $349 billion emergency small business program created in the $2.2 trillion coronavirus stimulus bill passed last week reached out to Trump’s daughter and senior adviser Ivanka TrumpIvana (Ivanka) Marie TrumpSpecial counsel investigating DeVos for potential Hatch Act violation: report Trump, Biden vie for Minnesota Trump luxury properties have charged US government .1M since inauguration: report MORE as they tried to negotiate higher interest rates.

The executives questioned the Paycheck Protection Program, which provides generous loans to small businesses with the caveat that they use at least 75 percent to pay their employees.