Rattner's Quadrangle Under Investigation In Kickback Scam

[girl gone mad]

Rattner's Quadrangle Under Investigation In Kickback Scam
http://www.businessinsider.com/henry-blodget-rattner-2009-4">The Business Insider

Car Czar Steve Rattner's former firm, Quadrangle, is no longer just a cooperating witness in the New York retirement fund kickback scandal.

According to the New York City comptroller, the firm provided inaccurate information to the city about the finder's fees it paid to a now-indicted placement agent. The comptroller has now launched an investigation:

WSJ: The New York City comptroller said Tuesday it is conducting an internal investigation into whether private-equity firm Quadrangle Group "intentionally misled or deceived" the city pension funds by failing to disclose paying finder fees to the firm of the now-indicted political adviser Hank Morris, a comptroller spokesman said.

Quadrangle paid fees to Mr. Morris's former employer, Searle & Co., in 2005 for an $85 million investment in the New York City Pension Funds, according to a lawyer for Searle.

But in disclosures to the pension fund, Quadrangle didn't mention retaining or paying fees to Searle, according to a spokesman for the New York City comptroller, William Thompson, who oversees the fund. Rather, Quadrangle told the pension fund it used two other placement agents -- companies that help investment firms secure business from pensions, endowments and foundations.

Quadrangle's reaction to this revelation was a play for time:

A spokesman for Quadrangle said: "This came as a complete surprise. We plan to gather all the facts and intend to clear up the issue as soon as possible."

Importantly, the New York City comptroller is not a prosecutor or regulator, so this does not carry the same weight as a regulatory investigation. But if the comptroller concludes that Quadrangle deceived it, the SEC and/or Andrew Cuomo might well jump into the act.

http://www.businessinsider.com/henry-blodget-rattner-2009-4">More...

[amandabeech]

1. The faster the Rattner leaves the auto task force, the better off the auto industry will be.

Rattner's real claim to fame is that he and his wife were major Dem fundraisers.

It shows how much regard the administration has for the auto industry that they let an investment banker with experience in the media business to determine the fate of a major, and one of the last, manufacturing industries.

I guess Gates at defense figures that Honda and Toyota will be just as happy to make trucks and humvees for the Mexican campaign as GM and Chrysler would have been.

I just don't know how much more of this I can take.