By PETER LATTMAN and CRAIG KARMIN,Wall Street Journal
Steven Rattner in happier times surveys his empire
The private-equity firm formerly run by Steven Rattner,who is leading President Obama’s auto-industry bailout,paid finders fees to the firm of now-indicted political adviser Hank Morris on investments in more pension funds than previously reported,according to a lawyer for Mr. Morris’s former firm.
The new disclosures concern investments by Quadrangle Group,Mr. Rattner’s former firm,in funds in New York City and Los Angeles. Mr. Rattner left the firm earlier this year to take the post at the Treasury Department. Until now,only investments with New York State’s fund,and a New Mexico fund,had been disclosed
The New York attorney general indicted Mr. Morris last month on allegations of extracting from investment firms improper fees in exchange for investments from the New York state pension fund. Mr. Morris through his lawyer has said he denies the charges and is fighting them. His lawyer,William J. Schwartz,on Monday declined to comment.
Neither Mr. Rattner nor Quadrangle have been accused of wrongdoing,and Quadrangle has said it is cooperating with and isn’t a target of the New York investigation,which is ongoing. There has been no allegation that fee arrangements in other public funds were on any front improper.
When Mr. Rattner was building his investment fund in 2005,Quadrangle paid fees to Searle &Co.,Mr. Morris’s then-employer,for an $85 million investment from the New York City Employee Retirement System and a $10 million investment from the Los Angeles Fire and Police Pension System,according to his former firm’s lawyer and a person familiar with the matter.