An insider revealed that a settlement is about to be reached between Steven Rattner, the former head of the US auto task force, and the Securities and Exchange Commission over questions on whether he participated in a state pension pay-to-play scheme.
The source said that Rattner will pay around $6 million and will be imposed a two-year securities industry ban. This source’s statements confirm an earlier report in The Wall Street Journal.
Rattner, who is currently promoting his book "Overhaul," departed from the private equity firm Quadrangle in 2009 to head US President Barack Obama's auto bailout task force. But only a few months later, he left that post.
Just a few weeks after taking the autos post, Rattner and Quadrangle were cited in New York Attorney General Andrew Cuomo's probe into a state pension pay-to-play scheme.
Last April, Quadrangle settled its part of the probe and released a statement at the time that it “wholly disavows the conduct engaged in by Steve Rattner.” Quadrangle was compelled to pay $7 million to New York, and $5 million to resolve the SEC probe. [via Autoblog]