Car czar Rattner - another personnel problem for Obama

The Administration has had plenty of its appointees step aside, or withdrawing their name before being approved to their posts, due to indiscretions in their pasts such as dodging taxes or paying workers off the books. The latest problem with an administration official may be much more serious.

According toThe Wall Street Journal, "Steven Rattner, the leader of the Obama administration's auto task force, was one of the executives involved with payments under scrutiny in a probe of an alleged kickback scheme at New York state's pension fund."

The news will make big headlines and Rattner may have to leave his position, but it will not change the pace or direction of the restructuring of General Motors (GM) and Chrysler by even one day. The car task force has other members. The program to review the books and business prospects of the two companies has already been done. The government has given GM and Chrysler their restructuring mandates, and the path to possible Chapter 11 filings has already been laid out.

Rattner may leave, but the car company problems and potential solutions are not going anywhere.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.