BAILOUT UPDATE: Probe clouds star turn for auto negotiator Rattner:

Back home in New York, Rattner has emerged as a player in an influence peddling scandal involving a giant state pension fund that provides retirement benefits for more than 1 million government employees.

The case has already led to criminal charges against six people, including the retirement system’s former top investment official.

Authorities say Rattner is unlikely to face charges, but the probe has raised unanswered questions. Among them: Did the banker cross an ethical or legal line in the winter of 2004-2005 as he tried to persuade state officials to make a major investment with his private equity firm?

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