Cerberus Debtor Named To Presidential Auto Task Force
The Wall Street Journal is reporting that Steven “Steve” Rattner of Quadrangle Group will join the Presidential Task Force on Autos as an advisor to National Economic Council Director Lawrence Summers. Rattner has no publicly-known experience in the automotive industry, although as a former newspaper man and print media investor, he surely knows a thing or two about dying industries. Anyway, as we reported earlier, Rattner’s major qualification for the position (he was previously being considered for “car czar” before that position was merged into the PTFA) appears to be that he’s a major Obama fundraiser, and is married to the finance chair of the Democratic National Committee.
In fact, Michael Wolff “strongly implied” that the New York papers hushed up a DUI of Mrs Rattner’s. This trope led Gawker to infer that “it’s definitely possible (Obama) ruled out Rattner to save themselves some headaches,” when news broke that there would be no single czar.
Yes, over his wife’s DUI.
Ironically almost everyone seems to have missed the real scandal with Rattner’s appointment to the PTFA. Rattner’s Quadrangle Group reportedly owes Cerberus Capital Management either $125m or the Maxim/Blender empire, a debt Chrysler owners Cerberus say is in default. And now Rattner will have a say in Chrysler’s fate. Conflict of interest much?
More by Edward Niedermeyer
Comments
Join the conversation
"he’s a major Obama fundraiser, and is married to the finance chair of the Democratic National Committee." Anybody remember Bush's prophetic line "Browny you're doing a hell of a job" Only the naive believed that Obama wouldn't have to pay off that 150 million he raised during the campaigns. Same old screw the people pay off the cronies office of the president just a different face.
Geeber wrote: "Once again, carlos, let me help you by summarizing your posts in shorter form: When Republicans do this sort of thing, it’s bad. When Democrats do this, it’s okay, because we must always assume that there was a very good reason for the move." Geeber, your posts remind me of the following quote: “The most brilliant propagandist technique will yield no success unless one fundamental principle is borne in mind constantly - it must confine itself to a few points and repeat them over and over” Joseph Goebbels
carlos.negros That Goebbel quote was an epic low blow, even if you were provoked. The issue I'd take with your position is that you're assuming that all these objections are coming from Republicans using this conflict of interest to count coup on Obama's new administration. I agree that Obama shouldn't allow a political rival to gain these positions (it would be idiotic and would definitely lead to an abuse of the position to score political points against the President) espcially considering the fact that his rivals are modern Republicans and have zero demonstrated credibility with regards to good government. However, absent that demand as the only other option, there isn't a good reason to waive our standards and accept a blatant conflict of interest. Simply put, Rattner can be easily replaced (what special and unique skills does he bring to the table?) so the burden of explanation would definitely fall on you in this instance. What exactly about the man, or his wife, is so important to this government endeavor that we should ignore traditionally disqualifying complications? Again, this isn't the medical community, where all experts are compromised by conflict of interest. And as an advisor to Summer and Geithner he will absolutely have a position of influence. It would be foolish of me to claim that he'll be making unilateral decisions of importance, but not to point out that he will have the means to commit acts of political aggresion against automakers and the government both (leaking for instance). He may also be in a position to set up a revolving door for himself if his control over access is great enough, and we've put up with quite enough of that crap over the last eight years (ok, longer).