Car czar Steve Rattner leaves: High note or trouble ahead?
Steve Rattner, the Democratic Party fund raiser extraordinaire (with whom I have worked) will leave his job as car czar at a good time. When President Obama visits Martha's Vineyard this summer, Rattner will be able to entertain Obama at his 15,500 square foot estate there and not have to worry about sucking up to the boss -- because Rattner will be out of Washington. Rattner may be leaving because Tim Geithner is secure as Treasury Secretary -- a position Rattner would no doubt savor -- or it could be to take care of some legal problems.
Since Rattner announced he would join the administration in February, he's gotten credit for helping to bail out Chrysler and GM, both of which filed for bankruptcy and appear well on their way to some form of rebirth, depending on the skill of their new CEOs. But Ron Bloom, who will take over from Rattner, may have done much of the work. Lou Gerstner, the former CEO of International Business Machines (IBM), about whom I posted last week has criticized Rattner for his lack of industrial experience. I hope Gerstner ends up running GM.
Meanwhile, it may well be that Rattner has some legal problems to tend to. His firm, Quadrangle Group, is under investigation for making payments to an indicted intermediary -- Hank Morris -- an associate of New York's former comptroller to help Quandrangle raise money from the New York state pension plan. Did the airing of the details of this investigation get squashed until after Chrysler and GM exited bankruptcy? If so, it will not be too shocking to see more information come out about the Quadrangle legal situation once Rattner is out of Washington.
And come to think of it, if that turns out to be an accurate guess then President Obama may want steer clear of Rattner's Martha's Vineyard estate -- at least for this summer.
Update. AP reports that the New York Attorney General is trying to negotiate a settlement with Rattner and Quadrangle that would enable him to avoid civil charges for the Morris payments.
Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book is You Can't Order Change: Lessons from Jim McNerney's Turnaround at Boeing. He has no financial interest in the securities mentioned.
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Reader Comments (Page 1 of 2)
7-14-2009 @ 9:12AM
SandraD said...
So, what else is new with this new administration? Seems they all have troubles. And these are Obama's picks! Well, Obama has gotten away with so many ghosts in his closets that he feels these people are okay. We are being czared to death with salaries that are obscene. And you people who voted for him still feel good about all that Obama is doing! Biggest spending in the history of the United States, taxes that are coming fast that will affect ALL of us not just the wealthy. He wants to rule every aspect of our lives. He wants to take away all of our rights. He is destroying what United States has stood for. And you still think he is the best? Better wake up America, we are losing it all, especially the American Dream.
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7-14-2009 @ 12:23PM
Sherry said...
Isn't it amazing Sandra D? You can explaine in Kindergarten terms and they will never understand. Now we all suffer with their vote. They were all brainwashed into believing Obama was the answer to the Democrats prayers after the "Last 8 Years" mantra. Now, we all get to see what "change" we all must face, even against our will. Our tax money will fund the most idiotic spending spree, yet we are told to tighten our belts and save and watch our personal credit and debt. Where's our currency printer? I am in a defecit! I need to print more money so I can pay for a spending spree too! I want to build a solar home so I can go green and not pay the new inflated prices for power! I want a new smart car that runs on natural gas! Bla bla bla...
7-14-2009 @ 1:33PM
kenny said...
Yes! Many of us feel that he was, and is the best choice. There was an election process that saw all the others fail to convince the American people that they were right for the job, (remember John Edwards?) It's funny that you are so critical of Obama's picks, when in today's news Sec. of State Hillary Clinton, is complaining about the amount of questions, and the length of in the vetting process. Every administration has had it's share of questionable characters, President Obama's is no different. What is different is the efforts being made to weed out as many of these people as possible. That can be a very arduous task, just ask the Boy Scouts, and the Catholic Church.
7-14-2009 @ 9:12AM
What an idiot said...
First this idiot tells them to close a bunch of dealers needed for the downsizing of GM and then he steps down. Very Classey. Another idiot that has no idea how to run a company. Nice job OBAMIE..
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7-14-2009 @ 9:36AM
bob anthony said...
It's all cute and funny-he's a donor-he has huge estate-he has legal problems that may have been squashed in media until after he got job-ha ha ha...
Is it that everyone in Washington is under investigation or does Obama only know people with shady pasts.
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7-14-2009 @ 1:36PM
kenny said...
George Bush and Dick Cheney, know a lot more people with shady pasts than President Obama does.
7-14-2009 @ 9:52AM
michael said...
After reading this article....I feel worse about what is going on then I did before. Does ANYBODY have any positive news about things ROBINOBAMAHOOD has done to make the economy stronger?
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7-14-2009 @ 9:56AM
James Johnson said...
It seems so easy to forget the past eight years now that Obama has been President for less than one.
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7-14-2009 @ 10:04AM
Connie said...
Wonder if this is the czar that said "washington has all the power" and wanted to change "the law of physics"! Kinda scary if you ask me!!
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7-16-2009 @ 9:58AM
redneck500 said...
This is another sign of the stupidity of this clown who thinks he can lead a country. He could not wipe his arse, withour screwing it up
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7-14-2009 @ 10:12AM
Tom T said...
I am beginning to see a trend here. It seems that the current administration is sticking to a political agenda with no regard to real world consequences. Right now due to his economic agenda the whole country will be California in about 2 years. China, India, and Russia are developing a new world currency due to the impending crash of the dollar and the damage to our economy by cap and trade(which has also made us a laughing stock internationally). While our Treasury and State Secretaries are jetting around the world begging other countries to buy our debt. No one is willing so the Fed is merely printing money. Welcome to Chicago Politics folks.
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7-14-2009 @ 10:36AM
jean w said...
can anyone tell me when all this crap with obahma is going to stop??? does he realize what he has done to our country?? how many more people are going to loose every thing they own because of no jobs!!!!!! someone needs to do something about this in our beloved government!!!
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7-14-2009 @ 1:49PM
kenny said...
People are losing everything they own, because they got themselves into some ridiculous financial situations. People bought cars, and homes at outrageous interest rates because they had jobs, and were making some money. These people got in over their heads and it only took the loss of one income to bring everything crashing down, I have family members and friends in the same situation. I have never heard one of them blame the government for their predicament, because they know that they did not do their homework, and got themselves in the mess they are in. The only ones blaming the government are people with political agendas. Americans are a people who always, consume too much, and have a bad habit of living beyond our means.
7-14-2009 @ 11:22AM
marshall said...
When is the country going bankrupt? I dont want to miss the auction.
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7-14-2009 @ 11:36AM
robin said...
Obama+Czars=The Destuction of America...the nation that Michelle Obama disliked until her husband was elected preisdent.....my opinion anti life, anti white, anit- Catholic scum running the country. Sending it to hell without the hand basket as Michelle had to get a $6000 pocketbook so the hand basket was auctioned off along with millions of foreclosed homes leaving an equal number of Americans homeless but who cares not the Obama's we are paying their bills!
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7-14-2009 @ 11:38AM
tom said...
Even prior to this Presidential Election, we all were witnessing the horrid storm which was to come, . . and now it's coming harder each day. . . We were all forewarned of the degree of fraud, lies, deception and lack of character which ran rampant around Barack Obama and his closest associates. . . . We were warned daily of his close ties and sympathy for the Muslim World ( Sworn Enemies of the U.S. ), . . as he has now displayed. . . It seems that every appointment or assignment carries with it the negativity of prior acts and / or legal scrapes from the past. . . The avid supporters of Obama were widly marked by recognizable ignorance of his past accomplishments or lack thereof. . . When asked, . . they demonstrated that they had NO KNOWLEDGE of what he stood for or how he stood on issues which are today so badly effecting our Nation. . .
I have never witnessed a sequence of fiascos, failures and embarrassments ever to occur within the United States Of America, . .. EVER !!! . . . YET, ( I'm 65 ), . . Some folks continue to hail his greatness !!! . . .
I ASK YOU, . . . "FOR WHAT" ??? . . . Rather than write several books ABOUT HIMSELF and, . . gradually destroy America slab by slab, . . WHAT ELSE HAS HE "EVER" DONE ???
He is not qualified, . . prepared nor experienced enough to be POTUS and HE CAN NEVER GET READY EVEN IF GIVEN A FULL 8 YR. TIME THERE. . . . WHAT A WASTE OF TIME. . . . It's sickening to watch !!! . . .
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7-14-2009 @ 12:48PM
kenny said...
What exactly are these crimes of President Obama? Are you saying that previous Presidents were any better? I am 53, and I remember that crook Nixon, bumbling Carter, and Ford. How about the way America, and our government was dragged through the mud in front of the whole world by Republicans hell bent on destroying Clinton. George Bush lied to the American people and got us into a war to benefit the rich and well connected. Every administration has had it's share of shady characters, every one! that's why we have confirmation hearings and vetting process. I, and many other Americans are quite satisfied with the job our current President is doing, and will give him our full support.
7-14-2009 @ 12:21PM
danny said...
During the last election the republican party had a pre-election selection committee run dozens of background checks to determine who would be the best Republican to run for office. The criteria for the job was of course, Honesty, Integrity, Family values, Religious beliefs and of course electability. So they took the names of all republicans and put them in a computor, then they programed the computor to remove all of those cheating on their wives, stealing from their office, those had poor religious beliefs, all of the pediophiles and homosexuals, all of the liars, and finally all of those who might have a chance to get elected in the Bush era aftermath.. The computor was working so hard to get an answer that it blew a fuse and went blank they were all dumbfounded.. So McCain being computor savy was asked to look at it.. After he got it back online he realized there were no names left....sudenly he got an E-mail from his wife asking what he was doing there and not at work.. imediately he turned off the computor and ran for the door..everyone was flabergasted.. "where are you going"? the head of the election committee asked.. and he shouted back "I'm gonna get my Dog and run for the office" and thats how we ended up with McCain and Palin.. and Obama as president..
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7-14-2009 @ 12:35PM
Linn said...
Everyone of these CZARS should be investigated by the senate !
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7-14-2009 @ 12:38PM
kenny said...
America, had better keep it's door open and let in as many legal immigrants as we can get. They are the only ones with faith and hope in the greatness of this nation. Americans have taken on the persona of chicken little, the sky is falling. No matter what the news, it is met with more prediction of doom and gloom. Foreigners have more faith in this nation, than Americas do. They continue to risk everything including their lives to come here, while Americans sit on their arse and whine and bytch about every damn thing. We act like a bunch of spoiled brats, who feel that things should always go our way. Keep up with the prediction that the sky is falling, sooner or later we will get our wish!
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