Rattner was instrumental in orchestrating the bankruptcies and subsequent taxpayer financed restructurings of Chrysler and General Motors.
Steven Rattner, the head of the Presidents’ Auto Task Force, has resigned, according to a statement just issued by Tim Geithner, Secretary of the U.S. Treasury.
Taking over as the head of the Task Force is Ron Bloom a former employee of the United Steel Workers Union, who also was deeply involved in the auto bailouts that cost U.S. taxpayers more than $60 billion thus far.
“With GM’s restructuring complete, Steven Rattner, whose leadership and vision were invaluable to the Auto Task Force’s efforts, has decided to transition back to private life and his family in New York City,” said Geithner.
Rattner’s New York banking and financial services background might also be a factor in the resignation. Rattner was one of the founders of the private-equity firm Quadrangle Group LLC. Rattner himself is now under investigation for bribing New York politicians to secure lucrative pension fund management contracts for his old firm.
Rattner joined Treasury last February and was instrumental in orchestrating the bankruptcies and subsequent restructurings of Chrysler and General Motors, both of which occurred at unprecedented speeds.
Rattner was also instrumental in the Government’s recapitalization of GMAC, now the finance provider of both Chrysler and GM. “We are extremely grateful to Steve for his efforts in helping to strengthen GM and Chrysler, recapitalize GMAC, and support the American auto industry. I hope that he takes another opportunity to bring his unique skills to government service in the future,” Geithner said.
Rattner also worked behind the scenes fix Delphi, a major supplier spun off from GM, whose bankruptcy after years of delay is now heading towards a resolution next week using the same so called section “363” sale proceedings used for the automakers, which allowed then to shed most of their debt.
“There is still much work ahead to ensure that GM and Chrysler re-emerge as stronger, more competitive companies. President Obama has made it perfectly clear that it is the responsibility of their private boards of directors and management teams to deliver that result. And thanks to the hard work of Steve, Ron, and the entire Auto Task Force, they have a much better chance today of rebuilding those companies and making them once again symbols of American success.”