Auto adviser invested big in Chrysler owner

Obama auto adviser Rattner was investor in Cerberus, private equity firm with large stakes in GMAC and Chrysler. (NYT)

Sotomayor‘s stance on abortion rights unclear. (NYT)

Faced with federal insider-trading investigation, Samberg shuts down hedge fund Pequot. (Bloomberg)

Obama chooses five ambassadors, including Citigroup‘s Susman and former Rep. Roemer. (AP)

Citigroup and SEC in talks to resolve mortgage valuation probe. (WSJ)

Mixed but mainstream

In Wall Street-related and class action rulings, Sotomayor tends to side with corporate defendants, according to Journal; most positions are firmly in Democratic mainstream.  (WSJ)

California Supreme Court upholds gay marriage ban, but preserves 18,000 marriages performed before Prop 8 passed. (NYT)

Banking trade group lobbying FDIC to let banks bid on the same assets they sell through Public Private Investment Program. (WSJ)

New GM rescue plan would give Treasury 70% stake. (WaPo)

With credit tight, Cargill, Bunge, Archer Daniels Midland gain most food export aid from USDA since 1992. (Bloomberg)

Where’s PPIP?

For several weeks beginning in late March, Tim Geithner and others on the Rubin wing of the White House expended significant political capital convincing the listless business press and the broader electorate that PPIP, the taxpayer-subsidized toxic asset removal program, was the only way forward.

Two months later, and without any PPIP toxic transfers, Geithner assured critics last week that the program would be activated in July.

During the original PPIP news cycle, Geithner argued that removing substantial toxicity from bank balance sheets was the last, best hope for restoring global confidence in the American financial system, and that the enormous social risks created by the program were preferable to the chaos that might result from a permanently contaminated banking system.

Continue reading Where’s PPIP?

Ships of fools

Pointing to the lack of a comprehensive plan, Senate Democrats, led by Reid, block Guantanamo closing. (NYT)

Volcker-led economic panel will discuss green jobs at first open meeting today. (Reuters)

Joined by Schwarzenegger, Mulally, and others, Obama announces new fuel efficiency alliance. (FT)

Fund managers Schultze, PIMCO, Barclays Capital, and Fridson say they may avoid lending to unionized companies in wake of Chrysler experience. (Bloomberg)

Goldman, JP Morgan, Morgan Stanley in talks with regulators about how to pay back bailout funds. (NYT)

Supreme Six

Obama considers six for Supreme Court pick, according to AP: Granholm, Napolitano, Sotomayor, Wood, Kagan, Moreno. (AP)

SEC preparing to charge Mozilo with fraud. (WSJ)

Cheney emerges from the shadows. (WaPo)

Congressional Democrats, including Nadler and Obey, register unease with Obama national security policies.  (NYT)

Schapiro considers transparency requirements for over-the-counter derivatives that may reduce bank profits significantly. (Bloomberg)