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Breaking: Car czar quits

posted at 5:00 pm on July 13, 2009 by Ed Morrissey
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Auto Industry Task Force chair Steven Rattner has abruptly quit this afternoon.  Also known as the “car czar,” Rattner’s appointment got roundly criticized because of his lack of experience in the auto industry.  His replacement will have the same problem:

Steven Rattner, head of the Obama administration’s auto task force, is leaving that post and will be replaced by former steelworkers official Ron Bloom.

The administration said Monday that Rattner decided to return to private life and his family in New York City.

Rattner won praise for the job he did managing the massive restructuring of General Motors and Chrysler. But his government service came under a cloud with an investigation of an influence peddling scandal back in New York.

Authorities have said that Rattner, an investment banker, was unlikely to face charges in the investigation which involved a giant state pension fund that provides retirement benefits for more than 1 million government employees.

I’m not aware that “authorities” have made a statement that he would not get charged in the corruption probe.  A Google search on “rattner face charges” turns up a number of hits with the same formulation that the AP uses here, but none with specific references to a public statement.  Mickey Kaus is the only one to specify that such a statement came from the White House, and that was to defend itself on the Rattner appointment after word broke of his involvement in the securities probe in New York.  The media seems awfully credulous in this regard on White House spin.

Rattner says he wants to spend more time with his family.  I’d bet that means the probe took a turn for the worse in recent days.  We’ll see soon enough, but something had to happen to prompt Rattner to quit so suddenly in the middle of Obama’s campaign to remake the auto industry.

Bloom will step into Rattner’s shoes, but Bloom has even less relevant experience than Rattner.  Not only has Bloom never apparently worked in the auto industry — he was an official in the steelworkers union before this — but he doesn’t have Rattner’s breadth of experience on Wall Street, either, although he did work as an investment banker for ten years.  What qualifications does Bloom have to remake the auto industry?  He was a union negotiator … and that’s about it.


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Comment pages: 1 2

CHANGE pls.

Enoxo on July 13, 2009 at 5:02 PM

Hope and mostly CHANGE!

ORconservative on July 13, 2009 at 5:02 PM

Another Govt. employee showing a preference for the private sector.

Hmmmm

Doh !!!

jake-the-goose on July 13, 2009 at 5:02 PM

Follow up: Wonder if Glenn Beck’s hitting pieces on Rattner got to him.

Crook that he is.

Enoxo on July 13, 2009 at 5:02 PM

Bloom Fast Facts:

• Is currently employed by the Pittsburgh-based United Steelworkers union, which has 1.2 million working and retired members. Bloom has worked as a special assistant to the USW president since 1996 and his duties include helping the union affect corporate business restructuring, investments, bankruptcies and mergers. He is particularly known for working on deals related to recent steel industry bankruptcies. In many of these deals, the USW made considerable concessions in order to help steel companies stay afloat.

• Before taking a position with the steelworkers union, worked as an investment banker for 10 years, including as a vice president for Lazard Freres & Co. As a banker, he often worked on investment deals related to unions.

• In January 1990, Bloom and another Lazard banker quit the company to start their own boutique firm.

• Bloom is a 53 year-old New York native, has a bachelor’s degree from Wesleyan University and an M.B.A. from Harvard Business School. According to the Pittsburgh Post-Gazette, he came from a proud union family that includes an aunt who was a leader in the teachers’ union.

• After graduating from Wesleyan, he worked for the Jewish Labor Committee and the Service Employees International Union (SEIU). He reportedly decided to go to business school so he could help unions navigate the business world.

• Is known as both a fierce negotiator and a creative problem solver who helped shepherd the steel industry through a painful transition period. His knowledge of the financing, as well as the labor, side of negotiations is thought to be the reason Obama tapped him to be an adviser on auto issues.

• As a banker, played a major role in deals between airlines and unions in the early 1990s — facilitating employee givebacks in exchange for stock, for example.

Doesn’t his “I heart Unions” past present a conflict on interest?

Joe Caps on July 13, 2009 at 5:03 PM

Hmmm…

bet the next one will be a “winner” too.

upinak on July 13, 2009 at 5:04 PM

***sniffs the air****

Yep, that is skunk alright.

Limerick on July 13, 2009 at 5:04 PM

Further confirms that I will not be any vehicle from Government Motors.

Dr.Cwac.Cwac on July 13, 2009 at 5:04 PM

Joe Caps on July 13, 2009 at 5:03 PM

Well that first bullet point is outdated, but you get the point.

Joe Caps on July 13, 2009 at 5:04 PM

be = buy

(Doh!)

Dr.Cwac.Cwac on July 13, 2009 at 5:04 PM

“Breaking” fits well in any headline about the Detroit auto industry.

Patrick S on July 13, 2009 at 5:05 PM

He was a union negotiator … and that’s about it.

That’s all he needs…

right2bright on July 13, 2009 at 5:05 PM

The administration said Monday that Rattner decided to return to private life and his family in New York City.

Obama must of told him he’d have to move to Detroit.

Caper29 on July 13, 2009 at 5:05 PM

What qualifications does Bloom have to remake the auto industry? He was a union negotiator … and that’s about it.

Make him POTUS. Why not, he has more experience than Ogabe.

Bishop on July 13, 2009 at 5:06 PM

He was a union negotiator … and that’s about it.

You do not need a lot of skills if negotiate with what is effectively yourself.

WashJeff on July 13, 2009 at 5:06 PM

He was a union negotiator … and that’s about it.

++++++++++++++++
Wonderful!/sarc

I would be surprise if Obama actually hired someone who does qualify for any of the administration’s positions

cmsinaz on July 13, 2009 at 5:07 PM

Further confirms that I will not be any vehicle from Government Motors.
Dr.Cwac.Cwac on July 13, 2009 at 5:04 PM

What, you don’t want to be a Pelosi POS 5000 Turbo?

Bishop on July 13, 2009 at 5:07 PM

Not only has Bloom never apparently worked in the auto industry — he was an official in the steelworkers union before this — but he doesn’t have Rattner’s breadth of experience on Wall Street, either, although he did work as an investment banker for ten years stay at a Holiday Inn Express last night.

Maybe that’s it.

Abby Adams on July 13, 2009 at 5:07 PM

Oh great, a union hack. That will certainly ensure success.

echosyst on July 13, 2009 at 5:07 PM

I may be going out on a limb here, but it seems Obama’s picks have more to do with keeping unions happy than producing a profitable company.

cntrlfrk on July 13, 2009 at 5:07 PM

What qualifications does Bloom have to remake the auto industry? He was a union negotiator … and that’s about it.

The auto industry is run by the union and government. That makes Bloom perfect for the job.

Daggett on July 13, 2009 at 5:07 PM

Friends in Detroit were full of aprehension as they returned to work today after the annual shutdown.
This news ought to really feel good to them.

Nots, this whole thing is just nuts.

ORconservative on July 13, 2009 at 5:08 PM

ooh, ooh, Rattner is a quitter.

katiejane on July 13, 2009 at 5:08 PM

Getting so that you “ALWAYS LOOK FOR THE UNION LABEL” when Barry makes an appointment.

GarandFan on July 13, 2009 at 5:09 PM

Also known as the “car czar,” Rattner’s appointment got roundly criticized because of his lack of experience in the auto industry.

Um, I think that Rattner did have experience in the auto industry. At least, he wrote on it for the WSJ for years.

Don’t confuse him with the 31 year-old nobody who Obama appointed to oversee the GM restructuring.

BigD on July 13, 2009 at 5:09 PM

Put a union guy in charge.

HAHAHAHAHAHAHAHAHAHAHA.

That’s what got us here.

fogw on July 13, 2009 at 5:09 PM

We own a majority stake in General Motors. Why not pick someone who will put the interests of the taxpayers before the interests of the UAW?

Ted Torgerson on July 13, 2009 at 5:10 PM

Folks are jumping out of the White House even before it’s fully staffed? Shocka.

Rattner’s replacement should be Ron Gettlefinger? That’d cut out the middleman, anyway.

hawksruleva on July 13, 2009 at 5:11 PM

Gee, I was an assembly engineer at GM back in the early 80’s until I got laid off in the downturn in 82, even though I saved them a recurring $1.8 million in annual labor savings back then through better job design and line balancing. Think I am more qualified than this hack? I have an MBA and and engineering degree!!

karenhasfreedom on July 13, 2009 at 5:11 PM

So, we are the shareholders, right? Technically, we can call for the ouster of all management and say that we don’t want unions anymore. We own it right? Let’s have a vote.

NO ONE purchase GM or Chrysler until it is returned to the private sector.

I have enough of this s..t.

suzyk on July 13, 2009 at 5:11 PM

Rattner suddenly wants to spend more time with his family?

His indictment must be imminent.

AZCoyote on July 13, 2009 at 5:12 PM

We own a majority stake in General Motors. Why not pick someone who will put the interests of the taxpayers before the interests of the UAW?

Ted Torgerson on July 13, 2009 at 5:10 PM

We don’t own GM, our kids and grandkids own it. And Obama’s in charge of their trust fund until they turn 18. Or he spends it all, which will come first.

Politicians no longer believe that the government spends other people’s money, anyway. They think it’s theirs.

hawksruleva on July 13, 2009 at 5:12 PM

Think I am more qualified than this hack? I have an MBA and and engineering degree!!

karenhasfreedom on July 13, 2009 at 5:11 PM

Depends – how much did you donate to the Obama campaign? That, I believe, is a primary qualification.

hawksruleva on July 13, 2009 at 5:13 PM

suzyk on July 13, 2009 at 5:11 PM

Didn’t you get the memo?

Ownership rights and contract law were sooooo pre-era of hope and change.

Joe Caps on July 13, 2009 at 5:13 PM

another fine choice from spock

rob verdi on July 13, 2009 at 5:13 PM

hawksruleva on July 13, 2009 at 5:11 PM

+1

cmsinaz on July 13, 2009 at 5:14 PM

Look at any project that Obumbler has siphoned of million…I mean organized.

ABJECT FAILURE.

Not just abject failure but abject failure at the HIGHEST COST.

jukin on July 13, 2009 at 5:16 PM

We’ll see soon enough, but something had to happen to prompt Rattner to quit so suddenly in the middle of Obama’s campaign to remake the auto industry.

Bet DOJ buries the upcoming charges against Rattner. It’s just Obambi’s puppet now. The IG’s are cowed, the whole department is being used for politics. The Chicago way at work.

catlady on July 13, 2009 at 5:17 PM

He was a union negotiator … and that’s about it.
.
.
Well at least he knows how to swing a hammer,right?

hanoverfist on July 13, 2009 at 5:17 PM

He was a union negotiator … and that’s about it.

What other qualifications are needed in this administration?

MarkTheGreat on July 13, 2009 at 5:17 PM

I get the feeling that even libs are going “Galt” on the bho administration.

Brains are at least on hiatus if not on strike. We’ll wait till bho implodes and then pick up whatever pieces are left.

Mojave Mark on July 13, 2009 at 5:17 PM

What other qualifications are needed in this administration?

MarkTheGreat on July 13, 2009 at 5:17 PM

ABJECT FAILURE.

WashJeff on July 13, 2009 at 5:19 PM

Auto Industry Task Force chair Steven Rattner has abruptly quit this afternoon.

You see the difference to Palin , when you’ve done something bad you’re out for the day.

the_nile on July 13, 2009 at 5:20 PM

Enter Socialism, stage right:

Union Negotiator working for a Community Organizer to restructure a private sector company….

mperek on July 13, 2009 at 5:20 PM

Waiting for Maureen Dowd, ABC, MSNBC and other Obama tank-dwellers to tear him apart as a flighty, unstable quitter in 5…4…3…2…1…

*crickets*

Laura in Maryland on July 13, 2009 at 5:22 PM

What other qualifications are needed in this administration?

MarkTheGreat on July 13, 2009 at 5:17 PM

Being a socialist helps.

lorien1973 on July 13, 2009 at 5:23 PM

Maybe he just didn’t like the “pay czar” telling him how much money he could make!

Bicyea on July 13, 2009 at 5:24 PM

I never got to see Barnum and Bailey’s 3 ring circus before. I love the show so far but I didn’t know it was gonna last this long.

Thunderstorm129 on July 13, 2009 at 5:24 PM

Barry better find a revolving door czar and fast

gatorboy on July 13, 2009 at 5:26 PM

I may be going out on a limb here, but it seems Obama’s picks have more to do with keeping unions happy than producing a profitable company.

cntrlfrk on July 13, 2009 at 5:07 PM
—–
Dude, that’s a 6′x14′ titanium-alloy I-beam you’re standing on… (or, you left off the sarc tag…)

My reply in either case: “In other news, Michael Jackson is still dead.”

Mew

acat on July 13, 2009 at 5:26 PM

Maybe Rattner had a face to face with Ogabe and saw something in his eyes, something that resembled a flaming bus and his own corpse being flung beneath it.

Bishop on July 13, 2009 at 5:27 PM

OT: Beck is reporting some deal that Obama has arranged to throw GE Capital a lifeline.

WTF? The ties between GE and Obama are absurd.

BuckeyeSam on July 13, 2009 at 5:28 PM

Only Dear Leader would see nothing wrong with putting a union wonk in charge of the auto industry…

Wyznowski on July 13, 2009 at 5:28 PM

BuckeyeSam on July 13, 2009 at 5:28 PM

GE got TARP funds, he’s probably referring to that.

lorien1973 on July 13, 2009 at 5:29 PM

We own a majority stake in General Motors. Why not pick someone who will put the interests of the taxpayers before the interests of the UAW?

Ted Torgerson on July 13, 2009 at 5:10 PM
—–
Can I take a tax loss, given the value the gov’t destroyed this year?

Mew

acat on July 13, 2009 at 5:29 PM

How does one quit a make-believe job and exactly where in our Constitution does it state that there must be a replacement for him?

redwhiteblue on July 13, 2009 at 5:29 PM

Has Obama changed his underwear since taking office.

It’d be nice to know at least one thing he’s changed was for the better.

Daggett on July 13, 2009 at 5:31 PM

I went Toyota in 1987 and never looked back to GM.

OmahaConservative on July 13, 2009 at 5:32 PM

Here’s a well-deserved slap upside the head to GM. Heckuva job, Rattski.

Mr. Pickles on July 13, 2009 at 5:32 PM

Rattner suddenly wants to spend more time with his family?

His indictment must be imminent.

AZCoyote on July 13, 2009 at 5:12 PM

Exactly. Bad news to follow.

patrick neid on July 13, 2009 at 5:33 PM

Ron Bloom is worse. Mr. Bloom is a convenient tool of Russian oligarchs. He objects to the sale of steel interests in the United States to reputable firms also in the United States and Brazilian firms, but drops all objections when a Russian oligarch enters the negotiation.

Mr. Bloom is allegedly a union rep. He’s responsible for the loss of thousands of union jobs in Ohio and Pennsylvania. This man shouldn’t run an ice cream truck.

gabriel sutherland on July 13, 2009 at 5:37 PM

Bloom will step into Rattner’s shoes, but Bloom has even less relevant experience than Rattner.

This is an important point, but I think it even misses the larger point about government interventionism. Even if Rattner or Bloom or, for that matter, President Obama had been experts in the auto industry it still wouldn’t matter because once they are in government their priorities are different.

Someone working in the auto industry worries about the company’s bottom line. They are worried solely about profitability. When that same person works for the government they are worried about politics. They are worried about pleasing voters including union workers, environmentalists, and other political constituencies.

This is the real problem with government interventionism. It’s not that they are not experts in the industry (and, of course, they aren’t), it’s that even if they were they are now making political decisions, not decisions based on what is most profitable.

The fact that they haven’t worked in the auto industry only serves to make it more absurd.

JohnInCA on July 13, 2009 at 5:38 PM

I think the important thing is that a union thug is now the car czar. Think about that for a minute.

Vashta.Nerada on July 13, 2009 at 5:39 PM

One more job saved or created!

gwelf on July 13, 2009 at 5:39 PM

I think the important thing is that a union thug is now the car czar. Think about that for a minute.

Vashta.Nerada on July 13, 2009 at 5:39 PM

What’s the big deal? A union already owns GM…

/sarc

gwelf on July 13, 2009 at 5:40 PM

Great. The steelworker’s union drove our steel industry straight into the toilet…

NTWR on July 13, 2009 at 5:41 PM

What qualifications does Bloom have to remake the auto industry? He was a union negotiator … and that’s about it.

Considering our President is a ‘community organizer’, ‘union negotiator’ sounds like a perfectly fine qualification.

gwelf on July 13, 2009 at 5:42 PM

but, but, but…. a union boss is next leader?…. another fox in the hen house.

MNDavenotPC on July 13, 2009 at 5:46 PM

What other qualifications are needed in this administration?

MarkTheGreat on July 13, 2009 at 5:17 PM

tax cheat?

Lily on July 13, 2009 at 5:50 PM

Actually, I’m starting to think the qualifications have to be membership in some secret club aimed at the destruction of the USA and the establishment of the USSA.
I hate conspiracy theories as much as the next guy but there are too many good old American businesses going the way of GM.

ORconservative on July 13, 2009 at 5:56 PM

He stayed in a Holiday Inn Express last night, though.

exhelodrvr on July 13, 2009 at 5:56 PM

Rattner won praise for the job he did managing the massive restructuring of General Motors and Chrysler

From who?

Please tell me which stakeholder would offer praise. Oh, other than the MFUAW.

I wish all the unions would slap the big Union Made labels on their products so I’ll know which ones not to buy.

reaganaut on July 13, 2009 at 5:56 PM

Best. Administration. Evah.

Y-not on July 13, 2009 at 6:04 PM

Think I am more qualified than this hack? I have an MBA and and engineering degree!!

karenhasfreedom on July 13, 2009 at 5:11 PM

You certainly do. The real question is would you want to work for this no account administration?

chemman on July 13, 2009 at 6:19 PM

Think I am more qualified than this hack? I have an MBA and and engineering degree!!

karenhasfreedom on July 13, 2009 at 5:11 PM

Sorry, but you’re not a Jewish, Wall Street, left-wing whore. We’ll keep your resume on file.

guntotinglibertarian on July 13, 2009 at 6:26 PM

What qualifications does Bloom have to remake the auto industry? He was a union negotiator … and that’s about it.

you act like being a union negotiator is a bad thing. it’s about 100 rungs up the ladder from community organizer, and we all see where that experience landed Doctor Feelgood.

the oval office, baby!

DrW on July 13, 2009 at 6:27 PM

I think Michael Keaton is more qualified to be car czar then either Rattner or Bloom.

At least he played an auto worker in TWO movies.

Can you name them?

DrW on July 13, 2009 at 6:28 PM

The administration said Monday that Rattner decided to return to private life and his family in New York City.

The job he was waiting for at Chick-Fil-A opened up. Finally!

Rattner won praise for the job he did managing the massive restructuring of General Motors and Chrysler.

What praise? From whom? Bondholders? Car Buffs? Believers in the rule of law?

But his government service came under a cloud with an investigation of an influence peddling scandal back in New York.

Kind of a “standing headline” for Obama appointees – they’re always skipping out, just ahead of the bracelets.

massrighty on July 13, 2009 at 7:30 PM

I think Michael Keaton is more qualified to be car czar then either Rattner or Bloom.

At least he played an auto worker in TWO movies.

Can you name them?

DrW on July 13, 2009 at 6:28 PM

Mr.Mom & Gung Ho

Jeff from WI on July 13, 2009 at 8:16 PM

http://www.youtube.com/watch?v=V_gLOUbQZgk

Jeff from WI on July 13, 2009 at 8:18 PM

‘kinda reminds me of the scene in Back To The Future where Biff is ultimately relegated to washing and waxing McFly’s car.

StimulateTHIS on July 13, 2009 at 8:27 PM

His replacement never worked in the auto industry, either.

But he’s ridden in a car … Hire him!

progressoverpeace on July 13, 2009 at 8:36 PM

Change.

-Dave

Dave R. on July 13, 2009 at 8:42 PM

Dave R. on July 13, 2009 at 8:42 PM

But Dave, where’s the damn hope?

massrighty on July 13, 2009 at 8:52 PM

In Arkansas

onlineanalyst on July 13, 2009 at 9:00 PM

onlineanalyst on July 13, 2009 at 9:00 PM

You got me!

massrighty on July 13, 2009 at 9:12 PM

If they ever manage to build an automobile,
will anyone really consider purchasing one?

Wolfen on July 13, 2009 at 9:20 PM

Steven Rat is jumping off of that sinking ship. we might as well have a union hack complete the task of running the US auto industry below ground.

bayview on July 13, 2009 at 10:38 PM

The Rat is leaving the ship.

PattyJ on July 13, 2009 at 11:27 PM

Breaking: Car czar quits

A car czar never quits — drum-roll, please — he RETIRES.

Dr. Charles G. Waugh on July 14, 2009 at 1:34 AM

Wonder what kind of severance package he’s getting?

Dr. ZhivBlago on July 14, 2009 at 2:39 AM

I may be going out on a limb here, but it seems Obama’s picks have more to do with keeping unions happy than producing a profitable company.

cntrlfrk on July 13, 2009 at 5:07 PM

Ya think.

Blacksmith8 on July 14, 2009 at 6:31 AM

Am waiting for my stock dividend payment on my new shares of GM. I would be happy if they put it in my SS fund even, But I fear I have been ripped off.

Ed Laskie on July 14, 2009 at 7:14 AM

I can’t wait until Obama appoints Nosson Zand (Kosher Hip-Hop artist) liquor Czar. Then we’ll have Czar Zand of the Grapes.

Dr. Charles G. Waugh on July 14, 2009 at 7:37 AM

Rattner says he wants to spend more time with his family. I’d bet that means the probe took a turn for the worse in recent days. We’ll see soon enough, but something had to happen to prompt Rattner to quit so suddenly in the middle of Obama’s campaign to remake the auto industry.

And on the day before the filthy liar makes his first trip as President to the formerly great state of Michigan. Rattner should have been a featured part of that trip.

I’m not so sure about this having to do with ethics charges, however. Name one appointee by the filthy liar that doesn’t have ethics charges against them. (Bo the dog doesn’t count).

highhopes on July 14, 2009 at 8:01 AM

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