Rattner Case Resolved

The lead story in today’s New York Times, “Rattner Settles Pension Inquiry for $10 Million,” augurs well for Andrew Cuomo’s performance as Governor. Mr. Cuomo cleared the last major case on his docket as attorney general, winning a fine from the financier, Steven Rattner, regarding improper activity related to the New York State pension fund. The activity involved promotion of investments by the pension fund in private equity companies, and Cuomo’s overall investigation returned $170 million to the pension fund as well as obtaining a felony conviction of Alan Hevesi, its trustee.

Mr. Rattner, who was designated by the Obama administration to handle the restructuring of the automobile industry, is a prominent Wall Street figure, and his feud with Mr. Cuomo threatened to taint the beginning of the new administration. The fine will not significantly affect Mr. Rattner, whose net worth is estimated at somewhere between $188 million and $608 million. Still, it will clear the deck for the new attorney general, Eric Schneiderman, and this is the responsible thing to do. In contrast, Eliot Spitzer left several prominent cases on the table when he became Governor and Mr. Cuomo took over in his stead.

The details of Mr. Rattner’s  improper activities are really par for the course. His company, Quadrangle, “allegedly” help private equity firms promote themselves as investments for the state pension fund, and he received kickbacks in turn. However, it is important to note that Mr. Rattner admitted no guilt as a result of the settlement.