Former ‘car czar’ to pay $10 million to settle case

NEW YORK – The investment banker who helped lead the Obama administration’s auto industry overhaul has agreed to pay $10 million to settle influence-peddling allegations in New York.

Former “car czar” Steven Rattner admitted no wrongdoing as part of the deal, which was announced by state Attorney General Andrew Cuomo on Thursday.

Cuomo’s office had filed civil lawsuits against Rattner in November, accusing him of paying kickbacks to help his company land $150 million in state pension fund investments in 2004 and 2005. He denied the charges.

The attorney general had initially sought $26 million in fines and penalties and a lifetime ban from the securities industry.

The settlement announced Thursday only bars Rattner from doing further business with any public pension fund in the state for five years.

“I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult,” said Rattner. “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.”