Attorney General and Governor-elect Andrew Cuomo has been going after those involved with state pension pay-to-play scheme for a while, but there is one white whale still out there: Financier Steven Rattner, whose Quadrangle Group got a $150 million investment from the NY State pension fund. Apparently Rattner's wife is telling people, "Andrew will be sorry when it all comes out. He is being unfair to Steve," and Rattner's friends are telling Cuomo to back off, to which Cuomo has replied, "I am sorry you feel that way. But do you know the facts in this case?" The NY Times looks at the he-said, he-emailed, he said and how the conflict is making things awkward amongst the rich and powerful. more ›

The trouble is just starting for private equity firm Quadrangle. Last week, it was revealed the firm's founder—and current White House auto bailout chief—Steve Rattner allegedly paid $1 million to a middleman to be included in the state's pension fund. Now it appears the investigation is heating out up over his attempts to have Quadrangle included in other pension funds—like those of New Mexico, LA and NYC. Apparently Quadrangle paid middleman/placement agent fees to the firm of Hank Morris, already indicted in state pension fund scandal, to drum up business—the NY Times reports that after a meeting with the NYC Comptroller's office, "Mr. Rattner left the meeting irritated that his own considerable connections did not seem to be enough. He soon hired Mr. Morris." City Comptroller Thompson's office is now investigating over whether Quadrangle lied about not naming Morris as a placement agent. (Also, Morris was also former State Comptroller Alan Hevesi's political consultant/top fundraiser!) To that end, the State Comptroller Thomas DiNapoli has banned placement agents from the pension fund, but a NY Times editorial suggests that the Legislature needs to create an independent body that watches the investments the State Comptroller makes. more ›

The state pension scandal, in which investment firms allegedly paid middlemen—state employees who were aides of former comptroller Alan Hevesi—to be included in the fund, has now apparently reached the Beltway. Sort of. Steve Rattner, who founded private equity firm The Quadrangle Group but is now heading up President Obama's auto industry task force, is apparently listed in the SEC's documents. The NY Times reports that while Rattner is not named, he is "described... as having arranged for his investment firm to pay more than $1 million to obtain New York State pension business." A U.S. Treasury spokesperson said Rattner let the Treasury know about the investigation before coming aboard. more ›