Bloomberg reports that Steven Rattner, already under investigation in New York State over possibly illegal payments to steer public pension fund management business to his firm, used an indicted adviser in New Mexico, to obtain state pension fund management business.
Rattner reportedly disclosed to Treasury the New York investigation, and bizarrely was allowed to take his position as auto czar. The New Mexico situation now links him to New Mexico Governor Bill Richardson, who chairs the nine-member New Mexico State Investment Council.
No wrongdoing has been alleged yet, but paying money to get state business is a dicey area, always. It is remarkable that the Obama vetting mechanism passed a man like Rattner so easily.
“We have some things that definitely are of concern to us, and that’s why we’re in the process of assessing anything that would be a conflict of interest, anything that would be inappropriate,” Charles Wollman, a spokesman for the state investment council, said yesterday. He declined to comment specifically on what was of concern to the council; nothing illegal was discovered.
Hat tip: Ed Lasky