Cuomo hits Bloomie's pet with civil fraud case

From the NY Times:

Steven L. Rattner, the financier who oversaw the federal rescue of the auto industry, was formally accused by New York’s attorney general, Andrew M. Cuomo, on Thursday of engaging in a kickback scheme involving the state’s pension system.

On the same day that Mr. Rattner was being celebrated on Wall Street for his role in turning around General Motors, he found himself embroiled in a bitter public battle with Mr. Cuomo, he settled similar charges with the Securities and Exchange Commission and he escalated a separate legal fight against his former investment firm.

Even as a resurgent G.M. went public again in a huge stock sale on Thursday, Mr. Cuomo sought to banish Mr. Rattner for life from the securities business in New York.

The civil fraud claims, which Mr. Rattner fiercely contested, came within moments of news that the financier had settled a related dispute with the S.E.C. In that case, Mr. Rattner accepted a two-year ban from certain Wall Street businesses and, without admitting or denying wrongdoing, agreed to pay a $6.2 million fine.

Mr. Cuomo, New York’s Democratic governor-elect, is seeking stiffer penalties, including $26 million. While other major figures in the pension investigation had already resolved their cases and Mr. Rattner had been expected to reach a settlement with the S.E.C., the charges from the attorney general’s office amounted to a public showdown between Mr. Cuomo and a man who is not only a prominent figure on Wall Street but also a powerful Democratic fund-raiser.

Funny how Bloomberg's connection to this creep was completely omitted from this article.

Bloomie's guy may be banned from Wall Street

From the NY Times:

As it investigates a suspected kickback scheme in New York’s pension system, the Securities and Exchange Commission has been pushing to bar Steven L. Rattner, a prominent financier and former adviser to the Obama administration on the auto industry, from working in the securities industry for up to three years, according to three people told of the discussions.

But Mr. Rattner has fiercely resisted the proposed penalty, setting up a face-off with the federal government, according to these people, who spoke on the condition of anonymity because the negotiations are intended to be confidential.

It would be the most severe penalty for any of the Wall Street executives ensnared in the wide-ranging pension investigation, and it would carry a significant stigma for Mr. Rattner, whose rise in high finance catapulted him to the top of New York’s social and political hierarchy.

Even being barred temporarily would be a blow to Mr. Rattner’s career and could endanger several of his pursuits. He will soon publish a book about his experience trying to restructure the American auto industry, which was widely praised. And he is playing a vital role in creating an investment office for Mayor Michael R. Bloomberg of New York, which will oversee billions of dollars for the mayor’s ambitious new philanthropic foundation.

Under the proposed S.E.C. settlement, Mr. Rattner, 57, would most likely be barred from advising Mr. Bloomberg on his finances, people briefed on the matter said. A spokesman for the mayor declined to comment.

Bloomberg letting shady guy organize his foundation

From the NY Times:

Steven L. Rattner, the financier under increasing scrutiny in a state and federal kickbacks investigation, is playing a key role in creating a new investment firm that will manage Mayor Michael R. Bloomberg’s fortune and finance his philanthropic foundation, according to three people told of the arrangement.

At Mr. Bloomberg’s urging, Mr. Rattner has taken a hands-on approach in helping to build the new company, despite his legal problems, these people said, speaking on condition of anonymity for fear of angering the mayor and Mr. Rattner.

The move comes at a time when others, including the investment firm he founded, are taking pains to distance themselves from Mr. Rattner.

Attorney General Andrew M. Cuomo has accused Mr. Rattner of paying kickbacks to an aide to former State Comptroller Alan G. Hevesi in exchange for the aide’s help in landing a state investment contract for Quadrangle, the private equity firm that Mr. Rattner founded and ran for years.

Mr. Rattner has since left Quadrangle, but last week, the firm paid $12 million to settle allegations in the kickback case and, in unusually harsh language, it rebuked Mr. Rattner for his role, calling it “inappropriate, wrong and unethical.” Mr. Rattner’s lawyers vigorously denied those claims.

Shockingly, Rattner is also President Obama's pick for his auto task force.