Forty-eight hours before his swearing in as governor, attorney general Andrew Cuomo has cut a deal with Steve Rattner.
And the terms are favorable — for Rattner.
The upshot is this: Rattner pays $10 million in restitution, and agrees to a ban preventing him from appearing before any public pension fund in New York for five years.
Cuomo's office had originally sought a $26 million fine — and a lifetime ban from financial dealings with New York pension funds.
In a statement today, Rattner said: "I am pleased to have reached a settlement with the New York Attorney General’s Office, which allows me to put this matter behind me. I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers."
(I would be gracious too — if I'd just saved 16 million bucks on a fine.)
The case — and the contentious relationship between Cuomo and Rattner — stems from the Quadrangle case. The Times explains:
"The dispute between the two men had begun several years ago, when the attorney general’s office began examining how investment firms won business from the pension fund and whether they had improper dealings with officials."
"Earlier in the year, his former private equity firm, Quadrangle Group, reached a settlement admitting to paying Hank Morris, a top adviser to a former New York State comptroller, Alan G. Hevesi, for his help in securing investments from the New York pension fund."
This November, Rattner settled with the S.E.C for a total of $6.2 million, and agreed to a two-year ban from certain Wall Street businesses.
Rattner neither accepted nor denied wrongdoing in the case under the terms of the deal with the S.E.C.
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