It seems like the Mayor Micheal R. Bloomberg of New York has decided to remove his fortune from a private equity firm founded by his longtime friend, Steven Rattner 10 months after that firm became embroiled in a scandal involving the state pension fund. The mayor is shifting about $5 billion from Quadrangle into a new investment firm devoted solely to his interest and that of his charitable foundation. In assets, Quadrangle will shrink by more than half, leaving the firm only private equity investments in the media and telecommunications industries. this problem caps a year of struggle for Quadrangle, after Steven Rattner, the founder who is Blomberg's friend, departed last year to run the Obama administration’s automobile task force. Mr. Rattner was linked to the New York pension fund investigation within months of that appointment and stepped down from his government role last summer. No charges have been brought against the firm or Mr. Rattner, and Bloomberg's decision to relocate his money may fuel speculation about his political ambitions. They say he is considered a potential candidate in the presidential campaign of 2012, and if he were to run, he would undoubtedly finance the campaign himself, at a staggering cost. His aides previously put the price tag at $1 billion. For further reading click here.
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