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GM IPO Bittersweet for Rattner

Stocks in this article: GM LAZ NYT MS

NEW YORK ( TheStreet) -- General Motors (GM) initial public offering on Thursday should be a triumphant moment for former "car czar" Steven Rattner, though he may be a bit distracted with other matters at the moment.

Rattner, who left a job as a reporter for The New York Times (NYT), to become a media industry dealmaker for Morgan Stanley (MS) and Lazard (LAZ) before starting a private equity firm called Quadrangle Group, was also hit with two lawsuits by New York State Attorney General and Governor-Elect Andrew Cuomo on Thursday.

As if that weren't enough for one day, he has also settled a related case with the Securities and Exchange Commission, agreeing to pay $6.2 million and to agreeing to refrain from "associating with any investment adviser or broker-dealer for at least two years."

At issue in the Cuomo lawsuits and the SEC case are Rattner's alleged participation in a kickback scheme enabling Quadrangle to manage $150 million in New York State pension fund assets.

The allegations have been in the press since April, and Rattner, who had been picked by the Obama Administration in February as the government's point man in turning around GM and Chrysler, resigned from his post in July.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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