4/19/2009

Steven Rattner, leader of the administration's auto task force, tied to pay-to-play criminal investigation

The WSJ has this.

Mr. Rattner's former private-equity firm, Quadrangle Group, is one of about 20 investment firms allegedly involved in a long-running pay-to-play investigation. The New York state attorney general's office and the Securities and Exchange Commission allege that investment firms made payments in exchange for investments from the $122 billion New York State Common Retirement Fund.

Mr. Rattner wasn't named in the SEC's complaint, but a person familiar with the matter said he was the senior Quadrangle executive the complaint identifies as meeting with a politically connected consultant about a finder's fee, which Quadrangle later paid after receiving an investment from the New York fund. . . . . .


and they note this.

A Securities and Exchange Commission complaint says a "senior executive" of Mr. Rattner's investment firm met in 2004 with a politically connected consultant about a finder's fee. Later, the complaint says, the firm received an investment from the state pension fund and paid $1.1 million in fees. . . . .

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4 Comments:

Blogger Matt Davidson said...

I thought you should know that Mr. Rattner isn't being investigated or accused of anything. I understand that you bloggers usually don't like to let facts get in the way of your "journalism," but I thought you should know the truth. I hope that you'll make the correct adjustments, thanks.

4/19/2009 3:04 PM  
Blogger John Lott said...

Dear Mr. Davidson:

I have cited and linked to news articles on this subject. If you have some other source, please provide it. As it is, you have provided no new information other than your assertion.

4/19/2009 5:18 PM  
Blogger Matt Davidson said...

Mr. Lott,

I quote the article, "Neither Mr. Rattner nor Quadrangle has been accused of any wrongdoing." I see that you have since changed the words in the article and no longer claim that he is being investigated, so I commend that.

Additionally, the issue is not whether Quadrangle made the payments, for these types of payments are legal. The issue is "whether they knew, or should have known, that fees they paid to certain entities for access to the New York fund were legitimate or were improper kickbacks."

And by the way, these are not assertions.

4/19/2009 7:54 PM  
Blogger John Lott said...

Dear Mr. Davidson:

Do you understand the term under "investigation"?

4/19/2009 8:14 PM  

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