Former Obama administration auto czar Steven Rattner will pay $10 million and is barred from doing business with New York pension funds for five years, in a deal involving his conduct at a private equity firm.
The agreement announced Thursday by outgoing New York Attorney General Andrew Cuomo ends his probe into Rattner's involvement with "pay-to-play" efforts by private equity firms to manage holdings of New York State pension funds.
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The deal ends an embarrassing episode for Rattner that might have prevented him from returning to work on Wall Street or in the Obama administration.
Cuomo dropped his effort to bar Rattner from working in the securities industry for life and pay $26 million. Rattner will pay $10 million in restitution to the state's pension fund.
The SEC said Rattner participated in a "widespread kickback scheme" to obtain $150 million in investments from New York's state pension fund for the Quadrangle Group LLC.
