Susan Lerner, the executive director of Common Cause/NY, said on that call that the agreement "underscores the crying need we have in New York State for pension reform."
Cuomo has authored a pension reform bill that would replace the sole trustee at the New York State Common Retirement Fund with a board of trustees and eliminate pay-to-play in state public pension funds. The legislation, entitled, "Taxpayers' Reform for Upholding Security and Transparency" ("T.R.U.S.T."), has received bipartisan support. In his remarks today he again called for the state legislature to pass that bill.
In a statement acknowledging the settlement posted to its web site this morning Quadrangle said in part, "that it has reached resolution with the Offices of the New York Attorney General ("NYAG") and the Securities and Exchange Commission ("SEC") concerning the investigation of public pension fund investments in New York. The NYAG and the SEC stated in their respective agreements that the matters under investigation related solely to the actions of former Quadrangle employees. As part of these settlements, Quadrangle neither admitted nor denied any allegations, will make payments to New York State of $7 million and the SEC of $5 million, and adopted the NYAG's Public Pension Fund Code of Conduct."
Quadrangle added that "as a result of the Attorney General's investigation, we have taken other remedial steps to include replacing both our General Counsel and outside counsel from that time period, implementing new compliance policies and better aligning the firm with the interests of our investors."
In addition to Quadrangle, the Attorney General announced that three other firms, Global Strategy Group, GKM and Platinum Advisors, and one individual, Kevin McCabe, reached agreements to repay a total of $12 (including Quadrangle's $7 million) comply with the Code of Conduct. None of the parties either admitted or denied the allegations.
Last year, Rattner left the post as head of the Obama's auto task force, as Cuomo's office focused on Quadrangle.
Upon leaving the auto task force, Rattner said he wanted to return to private life and his family. In a written statement to reporters at the time, Treasury Secretary Timothy Geithner said that with the heavy lifting of the auto bailout over, Rattner had "decided to transition back to private life and his family in New York City."
More than 100 firms have been subpoenaed by Cuomo in the pay-for-play probe, which has been ongoing since 2007.
In past settlements reported by ABC News, The Carlyle Group, a giant Wall Street firm best known for its ties to former President George H.W. Bush and other prominent public officials, agreed to pay $20 million to "resolve its role" in the ongoing corruption investigation and agreed to a new code of conduct that prohibits the use of such middlemen. Carlyle had made more than $13 million in payments to a indicted political fixer who arranged for the firm to receive business from a New York pension fund, New York attorney general Andrew Cuomo said today.
According to Cuomo, his corruption investigation found that in 2003, Carlyle hired Hank Morris, the chief political aide to then New York state comptroller Alan Hevesi, as "a placement agent" to help obtain investments from the New York Common Retirement Fund.
"If Boss Tweed were alive today, he would be a placement agent," Cuomo said.