Rattner to Leave Auto Task Force

Rattner's government service was clouded by an influence peddling investigation back in New York. Authorities have said Rattner, a Wall Street financier who co-founded the Quadrangle Group LLC in 2000, was unlikely to face charges in the probe of a giant state pension fund that provides retirement benefits for more than 1 million government employees.

A person familiar with the state attorney general's investigation said it had intensified in recent weeks and investigators had sought more information about Quadrangle's role in the pension fund. The person, who spoke on condition of anonymity, was not authorized to speak publicly because of the sensitivity of the investigation. Alex Detrick, a spokesman for New York Attorney General Andrew Cuomo, declined comment.

Rattner had hinted that changes were coming, telling reporters last week that the "task force will inevitably get smaller as this becomes more of a monitoring function."

Bloom, who advised union workers as the steel industry downsized, will be tasked with helping the government shift from a restructuring negotiator to the hands-off owner of General Motors and stakeholder in Chrysler's new alliance with Italian automaker Fiat.

Bloom told the Senate Banking Committee last month that the government was a "reluctant shareholder" and would leave day-to-day decisions to the companies' executives and board of directors. But he said the government's role was necessary to prevent the large companies from liquidating and shedding tens of thousands of jobs during an economic downturn.

"As the president made clear, we will manage this investment commercially and exit our position as quickly as is practical," Bloom said.