Steve Rattner Goes Down

It looks like someone's evening was just ruined: Steve Rattner, the high-profile financier who was responsible for managing Michael Bloomberg's fortune until recently, and who now heads up the Obama administration's auto task force, is reportedly one of the executives who has been tied to the alleged kickback scheme at New York state's pension fund, according to "a person familiar with the matter" who spoke with the the Wall Street Journal.

Rattner hasn't been charged with any wrongdoing yet—a state and federal investigation is ongoing—but if he's "senior executive" at Quadrangle Group mentioned in the complaint, it will be alleged Rattner agreed to pay what eventually became a $1.1 million fee in exchange for a $100 million investment from the pension fund. The SEC will also contend that this "senior exec" met with the brother of New York's then-deputy comptroller to talk about "acquiring the DVD distribution rights to a low-budget film, Chooch," and later agreed to acquire the rights for $88,841.

Yes, we're just as confused by that last bit as you are. But it's unlikely this story will have a happy ending for Rattner, no matter what charges the government is can make stick. In fact, Rattner can probably begin packing his bags and heading back to New York from Washington tonight. If he makes the trip home be car, though, he may want to do the driving himself.

Authorities Investigate Payments by Rattner [WSJ]