A settlement with the SEC and a ban on his participation in the securities business would represent a significant comedown for Mr. Rattner, who rose to the number 2 spot at Lazard Freres before leaving to co-found a private-equity firm that ended up ensnared in a pay-to-play probe.
Just this week, Wall Streeters toasted Mr. Rattner at a party at the Four Seasons restaurant in New York for the publication of his book on the auto bailout. Wall Street Journal reports that amongst those in attendance at Rattner's party were Mike Bloomberg, Bob Rubin and New York Times' publisher Arthur Sulzberger Jr.
Yet for more than a year, Mr. Rattner has been dogged by a pay-to-play probe, which has focused on allegations that state officials and others traded access to business from the roughly $125 billion fund in exchange for kickbacks, political favors and personal benefits.
I always find it interesting to scan comments to news articles. One commenter to this Wall Street Journal article cleverly refers to the SEC as the "Securities Executive Club"!