Former Car Czar Pays $10 Million, Does Not Go To Jail
Former Obama administration “car czar” and leader of the Presidential Task Force on Autos, Steven Rattner, wrote a $10 million check yesterday to NYS Attorney General Andrew Cuomo, and Cuomo dropped his charges. Rattner will remain a free man. The only thing he’s not allowed is to appear before any state-pension funds for the next five years. Cuomo can close out his desk and go on to become New York’s governor.
For Rattner, this is the end of the “pay-to-play” pension kick-back scandal that led to the criminal convictions of former state Comptroller Alan Hevesi and seven others. Rattner will get away, and the Empire State will have $10 million less of a budget shortfall.
The New York Post says that “Rattner’s punishment is a slap on the wrist compared to what Cuomo originally wanted from the ex-Wall Street financier.” Cuomo wanted a $26 million settlement. Rattner countered with $ 6 million. Cuomo turned him down, his reasoning is in the video. Excerpt: “6 million dollars is basically the amount of money Mr. Rattner will make from the deal. We have people in prisons today who would have gladly just given back the money and go on their way.” Well, Rattner had settled a parallel probe with the SEC for $6.2 million, and probably thought what’s good enough for the Feds should be good enough for the State.
Hevesi and others are awaiting sentencing, while Rattner continues advising his old pal, Mayor Bloomberg. Speaking of Bloomberg, Bloomberg treats the case with kiddie gloves. It gives wide play to Rattner calling Cuomo’s lawsuit “close to extortion.” Bloomberg went deep in the archives and found another Rattner bonmot: Cuomo “has basically threatened me all along the way that if I don’t do what he wants me to do, he will prosecute me to the ends of the earth.”
It was all talk, Steve. just make sure the check won’t bounce.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Figuring right from wrong in NY State pension politics is futile. The system is rife with abuse. Long term, it's probably (depending on Congress) destined to be tuned up and hair cut by a federal judge. NY state AG's have a history of stretching laws (and having their convictions overturned). And Rattner is what Rattner is - a connected finance guy and fixer who saved GM / Chrysler by stretching the law just enough. An interesting take on the subject, even though it applies more to the feds, is the book "Three Felonies a Day" by Harvey Silverglate.
And all the best to you too, Mike. Whew! My dumb little comment brought on this tirade? It doesn't seem to take much these days. Since you apparently don't have any ideological blinders, I trust you will share your wisdom with me when you notice that I've gone astray. I'll certainly be grateful for the direction.