Steven Rattner | |
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| Born | (1952-07-05)July 5, 1952 (age 72) Great Neck, New York, U.S. |
| Education | Brown University (BA) |
| Occupations |
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| Political party | Democratic |
| Spouse | |
| Children | 4 |
| Website | Official website |
Steven Lawrence Rattner (born July 5, 1952) is an American investor, media commentator, and former journalist. He is currently chairman and chief executive officer ofWillett Advisors, the private investment firm that manages billionaire former New York mayorMichael Bloomberg's personal and philanthropic assets. He began his career as an economic reporter forThe New York Times before moving to a career in investment banking atLehman Brothers,Morgan Stanley, andLazard Freres & Co., where he rose to deputy chairman and deputy chief executive officer.[1] He then became a managing principal of theQuadrangle Group, aprivate equity investment firm that specialized in themedia and communications industries.
In 2009, Rattner was named lead adviser to thePresidential Task Force on the Auto Industry.[2] He has also been an economic analyst for MSNBC'sMorning Joe, and as a contributing opinion writer forThe New York Times op-ed page.
Rattner was born to aJewish family[3] inGreat Neck, New York, the son of Selma and George Rattner.[4][5] His father was the president of a small paint company and a playwright who produced severalOff-Broadway plays; his mother was an architecture preservationist and vice president of the Victorian Society of America.[4][5][6] He attended local public schools in Great Neck. Rattner received his A.B. with honors in economics fromBrown University in 1974 and was awarded the Harvey Baker Fellowship. While at Brown, he served as editor-in-chief ofThe Brown Daily Herald in 1973.
Upon graduating from Brown, Rattner was hired in Washington, D.C., as a news clerk toJames Reston,New York Times columnist and former executive editor.[4] After a year, he moved to New York as a reporter to cover business and energy; there he became friends with colleaguePaul Goldberger. In 1977, he was transferred back to Washington to cover theenergy crisis.[7]
At age 27 he became the paper's chief Washington economic correspondent. He became close friends withArthur Ochs Sulzberger Jr., who was then theTimes publisher.[8] He concluded his service toThe New York Times with two years in London as its European economic correspondent.[7]
At the end of 1982, Rattner leftThe New York Times and was recruited byRoger Altman to join the investment bankLehman Brothers as an associate. After Lehman was sold toAmerican Express in 1984, he followed his bossEric Gleacher and several colleagues toMorgan Stanley, where he founded the firm's communications group. In 1989, after Morgan Stanley filed for aninitial public offering, he joined Lazard as a general partner and with Lazard colleagues advised on numerous deals for large media conglomerates such asViacom andComcast. AlongsideFelix Rohatyn, Rattner became Lazard's toprainmaker in the 1990s.Michel David-Weill named him the firm's deputy chairman and deputy chief executive in 1997.[1]
In March 2000, Rattner and three Lazard partners, includingJoshua Steiner, left the firm and founded theQuadrangle Group. They initially focused on investing a $1 billion media-focusedprivate equity fund.[9] Early investors in Quadrangle included Sulzberger, andMort Zuckerman. Headquartered in theSeagram Building, Quadrangle grew to manage more than $6 billion across several business lines, includingprivate equity,distressed securities, andhedge funds. The firm also hosted an annual gathering for media executives called Foursquare, where speakers includedRupert Murdoch andMark Zuckerberg. In 2008, the firm's asset management division was selected to invest the personal and philanthropic assets of New York MayorMichael Bloomberg, Rattner's close friend.[10]
Throughout his business career, Rattner has served on several corporate boards, includingCablevision,IAC/InterActiveCorp, andProtection One.
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During his tenure withThe New York Times in Washington D.C., Rattner developed an interest in economic policy, drawing him to politics and public service. In the mid-1990s, he began to work actively on behalf of Democratic candidates, beginning with PresidentBill Clinton. In 2008,Newsweek reported that he had long aspired to a cabinet position.[4]
In February 2009, withGeneral Motors andChrysler insolvent, Rattner was appointed counselor to theUnited States Secretary of the Treasury and lead auto adviser, arole informally referred to in the media as the "car czar". He soon assembled a team that grew to 14 professionals to address the financial problems of the two auto companies.[2]
Reporting to both Treasury SecretaryTimothy Geithner andLawrence Summers, the head of theNational Economic Council, Rattner's team developed a plan to save both the two manufacturers and related suppliers and finance companies. The plan involved a government investment of $82 billion in the sector, coupled with controlled bankruptcies for the two auto companies, as well as new management for both, and the closure of 2,000 automobile dealerships and loss of tens of thousands of related jobs.[11][12] AWhite & Case lawyer claimed that Rattner had threatened the reputation ofPerella Weinberg if they continued to oppose the controlled bankruptcies; however Parella Weinberg denied this claim andThe New York Times found that Rattner had never spoken with the lawyer who made the claim.[13]
Rattner later stated that the toughest decision for President Obama about the two auto companies was whether to save Chrysler. There was, however, no disagreement about asking GM CEO Richard Wagoner to step aside.[14]
By July 2009, both automakers had emerged from bankruptcy, had new management and were on their way to profitability.[11] At that time, Rattner left Washington and returned to private life in New York.
After leaving the government, Rattner wroteOverhaul: An Insider's Account of the Obama Administration's Emergency Auto Rescue, his account of theautomotive industry crisis of 2008-2010.
He has continued to speak publicly on auto-related matters as well as broader economic issues. Early in 2011, he began contributing a monthly column to the Financial Times on subjects ranging from the Greek crisis to the U.S. budget deficit. He also became the economic analyst for theMSNBC news show,Morning Joe.[15][16] And in June 2011, he was named a contributing writer to The New York Times Op-Ed page, publishing his first column on how government policies drive up corn prices.[17]
He is currently chairman and chief executive officer ofWillett Advisors, the private investment group that manages billionaire former New York mayorMichael Bloomberg's personal and philanthropic assets.[18]
In 2005, Quadrangle retainedprivate placement agent Hank Morris to help Quadrangle raise money for its second buyout fund.[19] Morris had come highly recommended to Rattner from U.S. SenatorCharles Schumer.[20] Morris was the chief political advisor toAlan Hevesi, theNew York State Comptroller and manager of the New York State Common Retirement Fund (CRF), which invests in manyprivate equity funds. Morris told Rattner he could increase the size of the CRF investment in Quadrangle's second buyout fund. Rattner agreed to pay Morris aplacement fee of 1.1% of any investments greater than $25 million from the CRF.[21]
In 2009, Quadrangle and other investment firms were investigated by theU.S. Securities and Exchange Commission for their arrangements with Morris. The SEC viewed the payments as "kickbacks" in order to receive investments from the CRF since Morris was also the chief political advisor to Hevesi.[19] Quadrangle paid $7 million in April 2010 to settle the SEC investigation, and Rattner personally settled in November for $6.2 million without admitting or denying any wrongdoing.[22]
The case drew significant media attention when the office ofAndrew Cuomo, theNew York State Attorney General, also sought penalties from Rattner.[23] Rattner has been a major fundraiser forDemocratic Party candidates includingAl Gore andHillary Clinton.
In an appearance on theCharlie Rose Show, Rattner asserted that hiring Morris as a placement agent was "legal then, legal now, and done properly."[20] He explained he was willing to settle with the SEC, but questioned whether Cuomo was motivated by the "facts" of the case and called his settlement demands "close to extortion."[20][24]
On December 30, 2010, Rattner settled with the New York Attorney General's office by agreeing to pay $10 million in restitution. As part of the settlement, Rattner was barred from appearing before a public pension fund in any capacity for five years. Rattner did not admit any wrongdoing and continued to assert his innocence.[24][25]
In 1986, Rattner marriedMaureen White in an interfaith service at theLotos Club in Manhattan.[5] They have four children. As of 2008[update], Rattner and his wife own homes onFifth Avenue inManhattan and onMartha's Vineyard.[4] They also own a horse farm inNorth Salem, New York.[26][27]
Rattner has served as a board member or trustee of a number of civic and philanthropic organizations, including theEducational Broadcasting Corporation as chairman, Mayor's Fund to Advance New York City as chairman,Metropolitan Museum of Art,Brown University,Brookings Institution and theNew America Foundation. Rattner is also member of theCouncil on Foreign Relations.[28] Rattner supported various educational and cultural institutions through the Rattner Family Foundation, including theSesame Workshop,Harvard Law School, theLower East Side Tenement Museum,Lincoln Center for the Performing Arts and others.[29] White served for five years as finance chair for theDemocratic National Committee and then as a senior advisor on humanitarian issues in Afghanistan and Pakistan for theU.S. Department of State.[26]
