Steve Rattner may be leaving his post as the head of Obama’s auto task force because of an intensifying investigation into wrongdoing by the private equity firm he co-founded.
Anonymous sources say the investigation into Quadrangle Group LLC has intensified in recent weeks, according to Reuters and the New York Times, which may have lead to his stepping down.
New York Attorney General Andrew Cuomo is leading the probe into whether Quadrangle paid middlemen to win state pension business. From the Times:
Mr. Rattner, according to people close to the investigation, arranged for his investment firm to pay $1.1 million to an agent who helped Quadrangle obtain New York pension business. The agent who received most of that money has been indicted and accused of selling access to the pension fund, but neither Mr. Rattner nor Quadrangle is expected to face criminal charges, according to people close to the matter.
Rattner left Quadrangle in order to work on the task force, and a source said he won’t return now. His post on the task force is being taken over by Ron Bloom, but the Treasury Department hasn’t said when the change goes into effect.