After overseeing the bankruptcies of Chrysler and General Motors, Steven Rattner, the head of President Obama’s auto task force, has resigned. Ron Bloom, a former steelworker official, will take over Rattner’s post.
The Obama administration announced on Monday that Rattner had resigned to return to his family life in New York, but the former Car Czar was facing an investigation into a possible investment scandal. Although details remain scarce, Rattner recently became the target of an investigation involving a state pension fund that provides benefits to more than 1 million government employees, according to the Associated Press.
Additionally, it was revealed in May that Rattner was an investor in Cerberus Capital Management, the former – and then-owner – of Chrysler .
Despite the dark clouds, Treasury Secretary Timothy Geithner had nothing to say but good words about Rattner’s work. “We are extremely grateful to Steve for his efforts in helping strengthen GM and Chrysler, recapitalize GMAC and support the American auto industry,” Geithner said in a statement. “I hope that he takes another opportunity to bring his unique skills to government service in the future.”
Bloom will take over immediately, overseeing the government’s control over Chrysler and GM and its eventual exit as owners.
