Pay-To-Play Pension Fund Scandal

By Zachary Roth

So: is Steve Rattner stepping down as the Obama administration’s car czar because of the investigation into whether his private-equity fund used pay-to-play tactics to win business from New York’s public pension fund?

Probably.

First, let’s recap: New York Attorney General Andrew Cuomo has been conducting a broad investigation into whether investment funds paid politically connected middlemen to help them win contracts to manage state pension funds. Rattner allegedly arranged for the private-equity fund he co-founded, Quadrangle, to pay $1.1 million to the political consultant Hank Morris to help the fund win business from the New York pension board. Morris has since been indicted and charged with selling access to the board. The SEC is also conducting its own investigation.

Continue Reading Did Pay-To-Play Probe Cause Rattner’s Resignation?

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