07.14.09
Obama’s Chief Auto Adviser Steps Down
WASHINGTON — Steven Rattner is quitting his post as President Obama’s chief adviser on the automobile industry and will be replaced by Ron Bloom, a senior member of the auto advisory group, Treasury Secretary Timothy F. Geithner said on Monday.
“With the emergence of both General Motors and Chrysler from bankruptcy, we enter a new phase of the government’s unprecedented and temporary involvement in the automotive industry,” Mr. Geithner said in a statement. “I am very proud of the work done by the Auto Task Force, under the leadership of Steven Rattner and Ron Bloom, to help oversee the efficient, fair and commercial restructuring of two great American companies.”
Whether the departure of Mr. Rattner was voluntary or was prompted by personal or policy differences was sure to be a topic of discussion in the capital.
But an investigation by Attorney General Andrew M. Cuomo of New York into Mr. Rattner’s former firm, the Quadrangle Group, has intensified in recent weeks, according to a person briefed on the matter. It is unclear whether the inquiry is connected to Mr. Rattner’s departure from the task force.
Quadrangle came under scrutiny earlier this year when it was implicated in a pay-for-play scandal involving a large New York State pension fund. Mr. Cuomo’s office has filed criminal charges against six individuals, including Hank Morris, an associate of New York’s former comptroller. Mr. Rattner was personally involved in discussions with Mr. Morris’s firm, Searle, which helped Quadrangle gain business in New York State.
Three private equity firms, including the Carlyle Group have already settled with Mr. Cuomo’s office.
Mr. Rattner could not be reached for comment, but a person close to him said it was unlikely he would return to Quadrangle, which he cofounded in 2000.
Mr. Geithner’s statement was marked with warm praise.
“With G.M.’s restructuring complete, Steven Rattner, whose leadership and vision were invaluable to the Auto Task Force’s efforts, has decided to transition back to private life and his family in New York City,” Mr americashadvance. Geithner said. “We are extremely grateful to Steve for his efforts in helping to strengthen G.M. and Chrysler, recapitalize GMAC, and support the American auto industry. I hope that he takes another opportunity to bring his unique skills to government service in the future.”
Mr. Rattner had wanted to stay on at least until General Motors emerged from bankruptcy, acquaintances have said. That emergence happened more quickly than some analysts had predicted.
The auto task force was able to essentially dictate what the reorganization of Chrysler and G.M. would entail by dint of the billions of dollars it poured into both companies. It also helped push through the recapitalization of GMAC, the former G.M. financing arm, and the latest attempt to push Delphi, the former G.M. parts making subsidiary, out of its four-year-old bankruptcy.
What remains unknown is how Chrysler and G.M. will fare in their newer, less indebted incarnations — and whether the government will ever recoup its investments in the companies. Forecasts for car sales remain dismal, though both companies have said their restructurings have made them capable of making money selling fewer cars. While the government is not expected to regain the money it invested in Chrysler, officials have said they expect to be repaid on the government’s loans to G.M.
What is next for Mr. Rattner’s career is also unclear at this point.
Mr. Rattner, who is in his mid-50’s, was a reporter for The New York Times before leaving journalism to amass a fortune in the hundreds of millions of dollars as an investment banker starting in the early 1980’s. He was personally involved in the recent firing of Rick Wagoner, the chief executive of General Motors, and negotiated with Chrysler’s creditors in an unsuccessful effort to avoid bankruptcy of that company.
Obama’s Chief Auto Adviser Steps Down
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