Steven Rattner - Public Service

Public Service

From his tenure with The New York Times in Washington D.C., Rattner developed a lifelong interest in economic policy, which drew him to politics and public service. In the mid-1990s, he began to work actively on behalf of Democratic candidates, beginning with President Bill Clinton. While it was rumored that Rattner would join a Democratic administration, he did not do so until after the election of President Barack Obama.

In February 2009, with both General Motors and Chrysler insolvent, Rattner was appointed Counselor to the United States Secretary of the Treasury and lead auto adviser. He soon assembled a team that grew to 14 professionals to address the financial problems of the two auto companies.

Reporting to both Treasury Secretary Timothy Geithner and Lawrence Summers, the head of the National Economic Council, Rattner's team developed a plan to save both the two manufacturers and related suppliers and finance companies. The plan involved a total government (i.e., taxpayer) investment of $82 billion in the sector, coupled with controlled bankruptcies for the two auto companies, as well as new management for both, and the closure of 2,000 automobile dealerships and loss of tens of thousands of related jobs.

Rattner later wrote a book: Overhaul: An Insider's Account of the Obama Administration's Emergency Auto Rescue. In the book Rattner states that the toughest decision for President Obama about the two auto companies was whether to save Chrysler. There was, however, no disagreement about asking GM CEO Richard Wagoner to step aside. By July 2009, both automakers had emerged from bankruptcy, had new management and were on their way to profitability. At that time, Rattner left Washington and returned to private life in New York.