The Car Czar We Hardly Knew

Steven Rattner, the former investment banker who (probably) got passed over to run the Treasury but who was later tapped to be the Car Czar in all but title, is stepping down. After the accelerated Chrysler and General Motors (GMGMQ) bankruptcies, Rattner figures he has done his duty and can return to defending his financial reputation.

Rattner is a source of fascination and loathing, but on balance it would appear that Obama’s decision to put him in charge of the money side of managing the Detroit meltdown achieved the desired objective: speed. The pace at which GM and Chrysler moved through the Chapter 11 process has astonished the auto industry and could establish a new standard for other industrial bankruptcies. This could be particularly useful in the car business, where a number of suppliers have entered or will be entering bankruptcy over the coming months.

As for Rattner…well, a scandal involving a New York State pension fund has stuck to him. This may make it difficult for him to re-enter government. In any case, he cleared the deck for his successor as the auto task force’s not-Czar, Ron Bloom, to move onto the next stage, which should involve unwinding the United Auto Workers union’s investment in both GM and Chrysler. Bloom has labor experience, so it makes sense.