Rattner probe closes in on settlement

NEW YORK, July 15 (UPI) -- A two-year investigation involving former U.S. Treasury consultant Steve Rattner has reached discussion of a settlement, a source close to the case said.

Rattner resigned as the head of the White House automotive task force abruptly Monday.

Treasury Secretary Timothy Geithner said Rattner was returning to private life and praised his work for the Treasury, The Washington Post reported Wednesday.

Geithner said Rattner's resignation coincided with the completion of bankruptcy cases for General Motors and Chrysler.

Some sources, however, have pointed to Rattner as the unnamed "senior executive" in an Securities and Exchange Commission filing that accuses Quadrangle, a firm Rattner founded, of paying middlemen lucrative fees to secure investments from pension funds.

The SEC file says the unnamed executive paid alleged middleman Hank Morris $1 million for securing business for Quadrangle. Morris has denied doing anything wrong.

The source told the Post a settlement would cancel any criminal charges, but leave open the possibility of civil action.