(When) Will Rattner Be Indicted?

On the same day that Roger Clemens was indicted for perjury, some PE execs were wondering about a big name in the buyout world that has remained unscathed.

“When will Steve Rattner be indicted?” one source wondered. “We are all amazed at how long he has managed to avoid it. It pays to be a fundraiser for the party in power.”

The person is, of course, referring to the pension fund kickback scandal that has engulfed Rattner for over a year.

Rattner, who co-founded the Quadrangle Group in 2000, was once a powerful buyout executive and former investment banker. In early 2009, he was appointed to head President Obama’s auto task force and aspired to be Treasury Secretary.  Rattner, that Spring, was tied to an alleged  pay-to-play scheme involving New York’s $140 billion Common Retirement Fund.

This past April, the Quadrangle Group publicly disavowed Rattner and settled with the New York Attorney General Andrew Cuomo and the SEC. Rattner has yet to settle with either. Vanity Fair recently reported that Rattner pleaded the Fifth during a 2009 deposition from SEC lawyers.

It’s unclear why Cuomo hasn’t indicted Rattner, save for reports of an immunity deal reached before a bunch of potentially incriminating emails were discovered (although that may only have covered a NY prosecution, not an SEC-led federal one). One banker says they aren’t surprised that Rattner has yet to be brought to justice. “Andrew Cuomo appears to be after him,” the person says. “The legal process can grind slowly.”

Officials for NY AG Cuomo couldn’t be reached for comment.