3RD UPDATE: Obama Auto Adviser Rattner Leaving Government Post
14 July 2009 - 8:36AM
Dow Jones News
Steven Rattner stepped down Monday as the Obama administration's
top auto adviser and the central player in the rescues of General
Motors Co. and Chrysler Group LLC, with his replacement to be a
former union adviser.
Steven Rattner stepped down Monday after having overseen the
U.S. government's unprecedented efforts to restructure General
Motors Co. and Chrysler Group LLC
Rattner plans to "transition back to private life and his family
in New York City," Treasury Secretary Timothy Geithner said in a
statement. Rattner wasn't immediately available for comment.
Ron Bloom, who has worked alongside Rattner on the
administration's auto-industry task force, will take over as the
administration's chief auto adviser. Bloom is a former adviser to
the United Steelworkers union.
Rattner, a former New York Times reporter and Wall Street
financier, was appointed by Obama in February to lead the team
advising the White House on the auto-industry rescue. He was a
leading figure in negotiations among auto executives, creditors,
union leaders, and other stakeholders that culminated with
bankruptcy filings by GM and Chrysler.
Each auto maker exited bankruptcy protection more swiftly than
independent analysts had expected. The government now owns about
60% of GM and a smaller stake in Chrysler after spending tens of
billions of dollars on their restructurings.
It was never clear how long Rattner had planned to stay on
board. As recently as last week, he declined to discuss his future
role and that of other task force members.
He faced questions in April after news reports disclosed he was
one of the executives involved with payments under scrutiny in a
probe of an alleged kickback scheme at New York state's pension
fund. Neither Rattner nor his former private-equity firm,
Quadrangle Group, had been accused of wrongdoing at the time.
As leader of the auto task force, Rattner periodically briefed
reporters on the government's plans for GM and Chrysler, answering
questions more candidly than other administration officials.
Geithner called Rattner's leadership and vision
"invaluable."
"I hope that he takes another opportunity to bring his unique
skills to government service in the future," Geithner said.
Sen. Carl Levin, D-Mich., said Rattner "has done a very good
job, and he made a significant contribution to a brighter future
for the auto industry."
-By Meena Thiruvengadam and Josh Mitchell, Dow Jones Newswires;
202-862-6629; meena.thiruvengadam@dowjones.com