Detroit Bureau on Twitter

Posts Tagged ‘rattner gm’

Former Auto Czar Rattner Settles Influence-Peddling Case

Rattner fined $10 million.

by on Dec.31, 2010

Former auto czar Steve Rattner settles in a pay-for-play scandal, which will result in a $10 million fine.

Former auto czar Steven Rattner has agreed to pay a $10 million fine to settle a “pay-to-play” case that claimed the one-time reporter had handed out kickbacks in order to steer $150 million in New York State pension fund business to his Wall Street firm.

The settlement, approved by NY Attorney General – and Governor-elect – Andrew Cuomo also bars Rattner from having any dealing with any public New York pension fund for five years.  But the former NY Times journalist still scored a victory.  Cuomo had originally hoped to force Rattner to pay a $26 million fine and to bar him for life from working anywhere in the securities industry.

Your Winning News Source!

Rattner, who is worth a minimum of $188 million according to knowledgeable sources, served as the Obama Administration’s first “auto czar,” helping put in place the bailout of, among others, General Motors and Chrysler, in early 2009.  But shortly after leaving the government he became enmeshed in an ongoing scandal involving the illegal efforts by various private equity firms to gain lucrative pension fund business.


Has GM Set Nov. 17th As Date For IPO?

Former “Car Czar” leaks plan.

by on Oct.25, 2010

Former auto czar Steve Rattner's settlement of a pay-to-play scandal is on hold.

The timing of General Motors Corp.’s initial public offering of stock has been a closely guarded, if eagerly-anticipated, secret.

But while GM officials have adamantly refused to discuss the time line for the IPO, former U.S. “auto czar” Steven Rattner may have given it away during an interview on the PBS interview program, the Charlie Rose Show.

While talking about his new book, “Overhaul,” Rattner told the host that the IPO was scheduled for November 17. So far, no one has come forward to support Rattner’s assertion but it appears to fit with the time line GM has established. GM’s current management is eager to shed the “Government Motors” tag as quickly as possible.

The Detroit Economic Club has withdrawn the invitation it had extended to former auto czar Rattner, who was previously scheduled to appear before the business group at a meeting in downtown Detroit next week.  But DEC President, Beth Chappel, has canceled the invitation, DEC officials confirmed Tuesday.

Your Trusted Source! Click Here to Subscribe!

“I am very sorry to inform you that we must cancel Mr. Rattner’s appearance at the Detroit Economic Club next Tuesday, October 26th.” Chappel said in an e-mail to DEC members. “We do not believe it is appropriate to proceed with this meeting, given the recent settlement between Mr. Rattner and the U.S. Securities and Exchange Commission,” Chappel said.

The DEC is one of the most prestigious public speaking venues for presidents, foreign leaders, leading American politicians and top business executives over the years.


Former Auto Czar’s Pay-To-Play Case On Hold

Settlement delayed.

by on Oct.15, 2010

Former auto czar Steve Rattner's settlement of a pay-to-play scandal is on hold.

The Securities and Exchange Commission has postponed – temporarily – a vote to approve a preliminary settlement with Steven Rattner, the Obama administration’s former “auto czar” who was instrumental in re-shaping Detroit through a massive bailout of bankrupt makers General Motors and Chrysler.

Since leaving Washington in the summer of 2009, Rattner has been swept up in a “pay-to-play” scandal involving New York State’s public pension fund.  The SEC has been working on a settlement, but the financier remains under investigation by New York Attorney General Andrew Cuomo.

Under the proposed deal with the federal government, Rattner would pay $6 million and accept a two-year ban from the financial industry, according to The New York Times, where Rattner once worked as a reporter before launching a second career as a financier.

Subscribe Now!

Such a settlement with the SEC would effectively end the 58-year-old Rattner’s career as a financier and make it doubtful he would ever hold a top political office.

It is unclear why the SEC settlement hearing was postponed, and the agency has not set a subsequent date.  It is also uncertain whether a settlement deal might be in jeopardy due to the Cuomo investigation, which would not necessarily be impacted by a settlement between Rattner and the federal government.