Former Obama 'car czar' settles suit with state of New York

Rattner had been accused by Cuomo of participating in a kickback scheme that allowed his company to obtain $150 million in state pension fund investments in 2004 and 2005. Cuomo's office filed suit in November, initially seeking $26 million in fines and penalties, as well as a lifetime ban for Rattner from the securities industry. Rattner, who left the administration in the summer of 2009, denied the charges.

Rattner previously paid $6.2 million to the Securities and Exchange Commission to settle a separate lawsuit, and agreed to a two-year ban from the securities industry.

The former New York Times reporter headed the president's effort to restructure General Motors and Chrysler. GM underwent a new initial public offering of its stock in November, which exceeded analysts' expectations and earned the government $13.5 billion after it sold 411 million shares of the company's stock.

The government invested roughly $50 billion in the company last year, and about $23.1 billion has been paid back, according to the Treasury Department.