Report: Steven Rattner close to deal with SEC

AP News
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Posted: Oct 14, 2010 9:39 AM
Report: Steven Rattner close to deal with SEC

The Securities and Exchange Commission could vote to settle a securities case with former Obama administration car czar Steven Rattner, according to published reports on Thursday.

The Wall Street Journal, citing unidentified people familiar with the matter, said the deal calls for Rattner to pay $6 million in fines and agree to a two-year ban from the securities industry for his part in what's come to be known as a pay-to-play scandal.

The Financial Times carried a similar report, saying Rattner would pay a $5 million penalty and accept a two-year ban from the financial industry.

The Journal and The New York Times each reported that a settlement could be announced Thursday.

The SEC has been investigating whether Rattner and his private-equity firm Quadrangle Group LLC. provided kickbacks, political favors and personal benefits to gain access to business from New York's $125 billion pension fund.

Efforts to get comment from either the SEC or Rattner were unsuccessful.

Quadrangle already agreed to pay $12 million to settle investigations by the SEC and New York's attorney general. Rattner is no longer with Quadrangle.

Rattner remains under investigation by the New York state attorney general even though he is nearing a deal with the SEC, according to the Journal report.