Tuesday, June 02, 2009
Steven Rattner
Turns out the man advising President Barack Obama on rescuing the failing auto industry once had a significant financial stake in two of the “Big 3.” An investment banker, Steven Rattner was until recently an investor in Cerberus Capital Management, a New York-based investment firm that owned the majority of Chrysler and GMAC, the financing arm of General Motors. Rattner’s shares in Cerberus ranged from $500,000 to $1 million and were focused on investments involving auto parts companies.
When exactly he divested himself of these holdings is unclear. All that’s been reported so far is that Rattner sold his shares sometime between January 1, 2008, and February 20, 2009, based on filings he made with the Securities and Exchange Commission. The Treasury Department has vouched for Rattner, claiming he acted properly in ridding himself of any conflict of interest.
Rattner has been the leader of President Obama’s automotive task force, and he was involved in the decision to fire CEO Rick Wagoner of General Motors. He also negotiated with creditors in an unsuccessful bid to avoid Chrysler from going into bankruptcy.
Longtime major donors to the Democratic Party and its candidates, Rattner and his wife, Maureen White, were important fundraisers for the president, providing between $100,000 and $250,000 to Obama’s presidential campaign, according to Bloomberg.
-Noel Brinkerhoff
Auto Adviser to Obama Had Ties to Industry Fund (by Louise Story, New York Times)
Obama Automobile Adviser Rattner Worth At Least $188 Million (by Jonathan D. Salant and Justin Blum, Bloomberg)
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