Rattner manages the billions of New York Mayor Michael Bloomberg, who is a clear political threat to Cuomo’s national political ambitions.
Steven Rattner, the Obama Administrations’ former “car czar,” has settled bribery charges in New York by paying a $10 million fine and agreeing to banishment from appearing before any public pension fund within the State of New York for five years.
New York Attorney General Andrew Cuomo had sued the multi-millionaire Rattner for using bribes to secure $150 million in investments for his former firm, the Quadrangle Group.
Rattner vehemently denied the charges at the time. (See Ex Car Czar Settles with SEC; Sued for Bribery by New York)
Nevertheless the agreement ends two lawsuits previously filed against Rattner by Democrat Cuomo in New York State Supreme Court about the circumstances surrounding pension fund investments in Quadrangle from the New York State Common Retirement Fund (CRF).
Cuomo, who was planning what turned into successful run for the governor’s office when he publicly waded into the pension fund morass, replaces this January another corrupt Democrat governor, David Paterson who among many shading dealings was fined $62,125 for asking for and accepting free tickets to the 2009 World Series from the New York Yankees at time when the Yankees had many tax and real estate issues before various state agencies. (Yes the da*# Yankees won their 27th World Series against the Phillies that year.)
Originally Cuomo said he wanted to ban Rattner from the New York securities industry and to recover $26-million. Cuomo’s maneuvering room in the case was limited by a previous plea deal in the investigation of Quadrangle that gave Rattner immunity from prosecution for cooperation.
Quadrangle Group settled separately with Cuomo last April, and distanced itself from Rattner, its departed founder and partner, who abruptly resigned from government employment in the midst of the controversy.
Rattner and his team at the U.S. Treasury Department was responsible for forcing drastic bankruptcy restructurings and CEO firings at General Motors and Chrysler as they were on the verge of being liquidated in 2009.
Rattner, acting through the then new Treasury Secretary Timothy Geithner of the incoming Obama Administration ultimately saved millions of U.S. auto jobs, including those at Ford Motor Company and transplanted auto factories as well as the reorganized GM and Chrysler.
Rattner was key to the bailouts, and outlines the politically maneuvering in his book Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry. It looked to be the successful beginnings of a political career for the financier – one now in doubt.
“I am pleased to have reached a settlement with the New York Attorney General’s Office, which allows me to put this matter behind me,” Rattner said in the Cuomo news release.
“I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers,” Rattner concluded.
Cuomo said his investigation has secured agreements with nineteen firms and five individuals, resulting in more $170 million in settlements for New York and the pension fund. The investigation has also led to eight guilty pleas, including pleas by former Comptroller Alan Hevesi, his chief political consultant, and his Chief Investment Officer.
Left out of Cuomo’s release was the fact that Rattner manages the billions of New York Mayor Michael Bloomberg, who is a clear political threat to Cuomo’s national political ambitions.
One could muse on similar Borgia political intrigues …
