Obama’s ‘Car Czar’ to Pay $5 Million Fine
Financier Steven Rattner, former head of the government’s rescue of the auto industry, has settled securities charges against him stemming from a bribery scheme that predated his time in office.
Rattner, a major bankroller of Democratic campaigns, will pay a fine of more than $5 million and accept a multi-year ban from involvement with the securities industry, under a settlement to be announced Thursday by the Securities and Exchange Commission, according to a report by the New York Times. He faces more fines but likely no jail time under a separate investigation by New York Attorney General Andrew Cuomo.
Rattner served as the “Car Czar” in 2009, overseeing the Obama administration’s complicated bailout of the Big Three Auto makers. Rattner’s attorney, Jamie Gorelick, a senior Justice Department official in the Clinton administration, did not return a call requesting comment.
As a principal with Quadrangle Group, a private Wall Street equity fund, he was accused of paying a $1 million bribe to an adviser to New York State Comptroller Alan Hevesi. Hevesi pled guilty last week to state criminal charges in a larger scheme that netted millions in kickbacks from Wall Street companies seeking investments from the New York state pension fund.