American investor and auto industry adviser to President Obama (1952-)
This article is about the chairman and chief executive officer of Willett Advisors LLC and former U.S. Treasury auto industry advisor. For the former head of DLJ Merchant Banking Partners, see
Steven C. Rattner
.
Steven Lawrence Rattner
(born July 5, 1952) is an American investor, media commentator, and former journalist. He is currently chairman and chief executive officer of
Willett Advisors
, the private investment firm that manages billionaire former New York mayor
Michael Bloomberg
's personal and philanthropic assets. He began his career as an economic reporter for
The New York Times
before moving to a career in investment banking at
Lehman Brothers
,
Morgan Stanley
, and
Lazard Freres & Co.
, where he rose to deputy chairman and deputy chief executive officer.
[1]
He then became a managing principal of the
Quadrangle Group
, a
private equity investment firm
that specialized in the
media and communications
industries.
In 2009, Rattner was named lead adviser to the
Presidential Task Force on the Auto Industry
.
[2]
He has also been an economic analyst for MSNBC's
Morning Joe
, and as a contributing opinion writer for
The New York Times
op-ed page.
Early life and education
[
edit
]
Rattner was born to a
Jewish
family
[3]
in
Great 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 several
Off-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 from
Brown University
in 1974 and was awarded the Harvey Baker Fellowship. While at Brown, he served as editor-in-chief of
The Brown Daily Herald
in 1973.
Journalism career
[
edit
]
Upon graduating from Brown, Rattner was hired in Washington, D.C., as a news clerk to
James 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 colleague
Paul Goldberger
. In 1977, he was transferred back to Washington to cover the
energy crisis
.
[7]
At age 27 he became the paper's chief Washington economic correspondent. He became close friends with
Arthur Ochs Sulzberger Jr.
, who was then the
Times
publisher.
[8]
He concluded his service to
The New York Times
with two years in London as its European economic correspondent.
[7]
Investment banking career
[
edit
]
At the end of 1982, Rattner left
The New York Times
and was recruited by
Roger Altman
to join the investment bank
Lehman Brothers
as an associate. After Lehman was sold to
American Express
in 1984, he followed his boss
Eric Gleacher
and several colleagues to
Morgan Stanley
, where he founded the firm's communications group. In 1989, after Morgan Stanley filed for an
initial public offering
, he joined Lazard as a general partner and with Lazard colleagues advised on numerous deals for large media conglomerates such as
Viacom
and
Comcast
. Alongside
Felix Rohatyn
, Rattner became Lazard's top
rainmaker
in the 1990s.
Michel David-Weill
named him the firm's deputy chairman and deputy chief executive in 1997.
[1]
Private equity career
[
edit
]
In March 2000, Rattner and three Lazard partners, including
Joshua Steiner
, left the firm and founded the
Quadrangle Group
. They initially focused on investing a $1 billion media-focused
private equity fund
.
[9]
Early investors in Quadrangle included Sulzberger, and
Mort Zuckerman
. Headquartered in the
Seagram Building
, Quadrangle grew to manage more than $6 billion across several business lines, including
private equity
,
distressed securities
, and
hedge funds
. The firm also hosted an annual gathering for media executives called Foursquare, where speakers included
Rupert Murdoch
and
Mark Zuckerberg
. In 2008, the firm's asset management division was selected to invest the personal and philanthropic assets of New York Mayor
Michael Bloomberg
, Rattner's close friend.
[10]
Throughout his business career, Rattner has served on several corporate boards, including
Cablevision
,
IAC/InterActiveCorp
, and
Protection One
.
Public service
[
edit
]
During his tenure with
The 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 President
Bill Clinton
. In 2008,
Newsweek
reported that he had long aspired to a cabinet position.
[4]
In February 2009, with
General Motors
and
Chrysler
insolvent, Rattner was appointed counselor to the
United States Secretary of the Treasury
and lead auto adviser, a
role 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 Secretary
Timothy Geithner
and
Lawrence Summers
, the head of the
National 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]
A
White & Case
lawyer claimed that Rattner had threatened the reputation of
Perella Weinberg
if they continued to oppose the controlled bankruptcies; however Parella Weinberg denied this claim and
The 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.
Post-political career
[
edit
]
After leaving the government, Rattner wrote
Overhaul: An Insider's Account of the Obama Administration's Emergency Auto Rescue
, his account of the
automotive 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 the
MSNBC
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 of
Willett Advisors
, the private investment group that manages billionaire former New York mayor
Michael Bloomberg
's personal and philanthropic assets.
[18]
New York pension fund investigation and settlements
[
edit
]
In 2005, Quadrangle retained
private 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. Senator
Charles Schumer
.
[20]
Morris was the chief political advisor to
Alan Hevesi
, the
New York State Comptroller
and manager of the New York State Common Retirement Fund (CRF), which invests in many
private 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 a
placement 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 the
U.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 of
Andrew Cuomo
, the
New York State Attorney General
, also sought penalties from Rattner.
[23]
Rattner has been a major fundraiser for
Democratic Party
candidates including
Al Gore
and
Hillary Clinton
.
In an appearance on the
Charlie 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]
Personal
[
edit
]
In 1986, Rattner married
Maureen White
in an interfaith service at the
Lotos Club
in Manhattan.
[5]
They have four children. As of 2008
[update]
, Rattner and his wife own homes on
Fifth Avenue
in
Manhattan
and on
Martha's Vineyard
.
[4]
They also own a horse farm in
North Salem, New York
.
[26]
[27]
Rattner has served as a board member or trustee of a number of civic and philanthropic organizations, including the
Educational Broadcasting Corporation
as chairman, Mayor's Fund to Advance New York City as chairman,
Metropolitan Museum of Art
,
Brown University
,
Brookings Institution
and the
New America Foundation
. Rattner is also member of the
Council on Foreign Relations
.
[28]
Rattner supported various educational and cultural institutions through the Rattner Family Foundation, including the
Sesame Workshop
,
Harvard Law School
, the
Lower East Side Tenement Museum
,
Lincoln Center for the Performing Arts
and others.
[29]
White served for five years as finance chair for the
Democratic National Committee
and then as a senior advisor on humanitarian issues in Afghanistan and Pakistan for the
U.S. Department of State
.
[26]
References
[
edit
]
- ^
a
b
"Lazard Names New Top Team Post-Rohatyn"
Archived
November 7, 2017, at the
Wayback Machine
by Peter Truell,
The New York Times
, May 23, 1997.
- ^
a
b
"Rattner to Serve as Lead Adviser on Auto Bailout"
Archived
February 25, 2009, at the
Wayback Machine
by Michael J. de la Merced and
Andrew Ross Sorkin
,
The New York Times
"DealBook", February 23, 2009.
- ^
Jewish news of Northern California: "The road to the White House goes through Jerusalem" by Douglas M. Bloomfield
Archived
September 29, 2017, at the
Wayback Machine
May 22, 2015
- ^
a
b
c
d
e
Roberts, Johnnie L. (August 1, 2008).
"The (Mostly) Charmed Life of Steve Rattner"
.
Newsweek
. Retrieved
April 17,
2023
.
- ^
a
b
c
New York Times: "Steven Rattner Weds Maureen White"
Archived
September 29, 2017, at the
Wayback Machine
, June 23, 1986
- ^
New York Times: "G. S. Rattner, Paint Maker and Writer, Dies at 82"
Archived
September 29, 2017, at the
Wayback Machine
December 17, 2004
- ^
a
b
"2-Min. Bio: Obama Car Guru Steve Rattner"
Archived
August 2, 2013, at the
Wayback Machine
by Kate Pickert,
Time
, April 20, 2009.
- ^
Manly, Lorne (July 7, 2005).
"A Difficult Moment, Long Anticipated"
.
The New York Times
.
Archived
from the original on August 29, 2018
. Retrieved
August 29,
2018
.
- ^
Patrick McGeehan, "4 Top Lazard Freres Bankers Are Quitting to Open Firm"
Archived
August 15, 2018, at the
Wayback Machine
,
The New York Times
, March 1, 2001.
- ^
"Bloomberg Chooses a Friend to Manage His Fortune"
,
Andrew Ross Sorkin
Archived
December 20, 2016, at the
Wayback Machine
,
The New York Times
, January 16, 2008; Retrieved 2-23-09.
- ^
a
b
Shao, Maria.
"The 2009 U.S. Auto Bailout Was Necessary, Argues Rattner"
.
Stanford Knowledgebase
. Stanford Graduate School of Business. Archived from
the original
on March 22, 2011
. Retrieved
May 2,
2011
.
- ^
"Auto bailout was not unmitigated success"
Archived
March 29, 2016, at
Archive-It
by Zachary Goldfarb, "The Washington Post" September 6, 2012.
- ^
De La Merced, Michael J. (May 3, 2009).
"White House Denies Claims of Threat to Chrysler Creditor"
.
The New York Times
. Retrieved
September 16,
2020
.
- ^
Rattner, Steven (2010).
Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry
. Houghton Mifflin Harcourt.
ISBN
978-0-547-44321-8
.
- ^
"The great man theory of business"
Archived
February 22, 2011, at the
Wayback Machine
by Steven Rattner,
The Financial Times
, January 19, 2011.
- ^
Steven Rattner on MSNBC.com
[
dead link
]
- ^
Rattner, Steven (June 24, 2011).
"Ethanol Production Wastes Corn"
.
The New York Times
.
Archived
from the original on August 14, 2018
. Retrieved
February 18,
2017
.
- ^
Rogers, Christina (March 24, 2020).
"Steven Rattner on Coronavirus Stimulus: 'Better to Go Too Quickly and Too Heavily'
"
.
WSJ
. Retrieved
January 23,
2021
.
- ^
a
b
Story, Louise (April 22, 2009).
"Quadrangle Facing Questions Over Pension Funds"
.
The New York Times
.
Archived
from the original on March 24, 2018
. Retrieved
February 18,
2017
.
- ^
a
b
c
"Charlie Rose - Steven Rattner"
. Archived from
the original
on January 28, 2011
. Retrieved
May 2,
2011
.
- ^
"Findings of the Attorney General's Investigation"
(PDF)
. New York Attorney General. April 15, 2010.
Archived
(PDF)
from the original on June 10, 2015
. Retrieved
March 8,
2012
.
- ^
"SEC Settles With Steven Rattner Over Kickbacks; Cuomo Files New Lawsuits"
Archived
January 21, 2015, at the
Wayback Machine
by Joshua Gallu, Karen Freifeld and Bob Van Voris,
Bloomberg
, November 18, 2010,
- ^
Story, Louise; Lattman, Peter (October 13, 2010).
"Steven Rattner Is Said to Settle Pension Case"
.
The New York Times
.
Archived
from the original on January 13, 2017
. Retrieved
February 18,
2017
.
- ^
a
b
"Rattner to Pay $10 Million in Settlement With Cuomo"
Archived
October 13, 2017, at the
Wayback Machine
by Peter Lattman,
The New York Times
"Deal Book", December 30, 2010.
- ^
Corkery, Michael; Rothfeld, Michael (December 31, 2010).
"Rattner Settles Scandal for $10 Million"
. The Wall Street Journal
. Retrieved
October 24,
2020
.
- ^
a
b
Cohan, William
(2007).
The Last Tycoons: The Secret History of Lazard Freres & Co.
Doubleday
.
ISBN
978-0-385-51451-4
.
- ^
Happy Birthday To North Salem’s Steven Lawrence Rattner | The North Salem Daily Voice
Archived
October 6, 2014, at the
Wayback Machine
Retrieved October 2, 2014.
- ^
"Steven Rattner"
. New America Foundation. Archived from
the original
on September 7, 2013.
- ^
"Steven Rattner and Maureen White"
. Inside Philanthropy.
Archived
from the original on February 5, 2018
. Retrieved
February 6,
2018
.
External links
[
edit
]
|
---|
Investment strategy
| | |
---|
History
| |
---|
Investor types
| |
---|
|
---|
International
| |
---|
National
| |
---|
Academics
| |
---|
Other
| |
---|