Steven Rattner has reached an agreement with New York Attorney General Andrew Cuomo to settle allegations that the former "car czar" paid a state official to steer state pension-fund business to Rattner's Manhattan-based private-equity firm several years ago.

The settlement, announced Thursday by state Attorney General Andrew Cuomo, requires Rattner to pay $10 million in restitution to the State of New York and bars Rattner from appearing in any capacity before any public pension fund in the state for five years, The New York Times reported online.

The Times noted the agreement settles two lawsuits filed by Cuomo in November against Rattner, the former Obama official who oversaw the federal rescue of General Motors (GM) and Chrysler.

"I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multi-year investigation," Cuomo said in a statement. "The state pension fund is a valuable asset held in trust for retirees and supported by taxpayers. Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund."

Cuomo is the state's governor-elect, and will be sworn in Saturday, New Year's Day.

In a statement issued in conjunction with Thursday's agreement, Rattner said:
"I am pleased to have reached a settlement with the New York Attorney General's Office, which allows me to put this matter behind me. I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers."
Rattner left his firm in 2009 to lead the White House task force on the auto industry. Cuomo had sought as much as $26 million to settle the allegations. Rattner previously agreed to pay $6.2 million to settle federal charges over the "pay-to-play" scandal. He also accepted a two-year ban from certain Wall Street businesses, the Times reported, but he didn't admit or deny wrongdoing.

Increase your money and finance knowledge from home

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

Add a Comment

*0 / 3000 Character Maximum

27 Comments

Filter by:
Sonny

Another "pure" public servant. Believe me folks, this is the norm for politics and Washington. The fewer, the better.............when are we going to learn?

January 01 2011 at 11:41 AM Report abuse rate up rate down Reply
Robert & Lisa

Gold and silver are both up well over 500% in less than 10 years. Does anyone really believe that we are going in the right direction? Big, evil, ultra rich man George Soros, the corrupt Demoncrat backer is loaded with precious metals. Think he and his corrupt puppets are looking out for you?

January 01 2011 at 5:19 AM Report abuse +1 rate up rate down Reply
Jen

Transparency based on change you can believe in?

December 31 2010 at 9:11 PM Report abuse +2 rate up rate down Reply
kenneth

So this is the kind of person Obama would pick to be his "car czar"? While not admitting to any wrongdoing, he agreed to pay $10 M in restitution. I wonder where he got the $10 M with which to pay? Hopefully, Cuomo and his subordinates made sure that it did not come from anyone who had a stake in the auto bailouts.

December 31 2010 at 12:40 PM Report abuse +3 rate up rate down Reply
1 reply to kenneth's comment
Robert & Lisa

They are corrupt and everyone knows it yet Obama polls at almost 50% approval. We are in serious trouble.

January 01 2011 at 5:20 AM Report abuse +2 rate up rate down Reply
jkennedy806

I remember the Nixon administration, I waa very young, Jr. HS and HS. I for a long time did not trust republicans, I still have a distrust. However, after this administration, I now have complete disdain and distrust of Democrats as well. Never met a bigger lying sack of crap bunch. Talked about organized crime. Right from the get go, selling Obammies seat to the highest bidder in the state by the governor. To all the promises made, well it's been three years, and don't give me that well it takes a long time crap. After the Great Depression things started to turn around when the Dem got booted out in the election. If you google Panics and Depressions -- it's always been bankers that start with land speculation and bubbles. In the 1860's when the big Praire states were being settled by claims. People were being paid by bankers to go and stake a claim -- and sit on the land. Bankers back then were speculating on real estate -- and foreclosing/stealing on land for profits. Washington is stupid.

December 31 2010 at 9:34 AM Report abuse +3 rate up rate down Reply
pete

$10 mill is chicken feed to him. How much exactly did he make or does he stand to continue to make on the deal? He ought to have everything he and his family have purchased over since 5 years before the deal began taken away and he should be sent away for a very long time. We do it to drug lords, his drug of choice is other peoples money.

December 31 2010 at 9:25 AM Report abuse +4 rate up rate down Reply
ajallenky

Sounds like Rattner is another " RAT " in the Obummer woodpile !!!!

December 31 2010 at 6:30 AM Report abuse +5 rate up rate down Reply
someguyfromitaly

Mr. Obama and his racist spouse are laughing at you America, remember this in 2012 !

December 30 2010 at 9:48 PM Report abuse +11 rate up rate down Reply
djjscar

Another Obama buddy is a crook, who would have guessed.........

December 30 2010 at 9:30 PM Report abuse +13 rate up rate down Reply
larryeart

The guy is a convicted crook and should be a felon-yet he is only barred for public pension fund business for just 5 years?? Why not FOREVER!??? These ROACHES just keep coming back.

December 30 2010 at 6:00 PM Report abuse +14 rate up rate down Reply