Cuomo Issues Fresh Subpoena in Rattner Case

Andrew M. Cuomo, attorney general of New York, issued a subpoena to private equity firm Quadrangle Group, seeking information on the compensation and terms of departure for financier Steven L. Rattner.

Cuomo's office is still in negotiations with Rattner on the terms of a settlement related to Rattner's role in kickbacks to secure investment business from the states' pension fund, The New York Times said.

Rattner, who oversaw the Obama administration's restructuring of the auto industry, has already rejected a settlement that would have forced him to pay a fine of $20 million. He said that the penalty is disproportionate to the money he earned at Quadrangle and previous penalties imposed on others.

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The attorney general has focused on Rattner's decision to hire Hank Morris, an adviser to former New York State comptroller, as well as the help Rattner provided the brother of a top pension fund official in distributing a low-budget movie.

Quadrangle has already settled with authorities. The investment firm admitted to paying Morris for steering business from the state pension fund towards Quadrangle.

The firm paid a $12 million penalty and described Rattner's actions as "inappropriate, wrong and unethical." Rattner's lawyers dispute this characterization.