Bloomberg moves fortune from firm tied to scandal

In this Monday April 20, 2009 file photo, Mayor Michael Bloomberg listens during a press conference in New York. (AP Photos/Bebeto Matthews)

February 20, 2010 10:24:40 AM PST
Mayor Michael Bloomberg is moving his fortune out of a private equity firm linked to a state pension fund scandal. A spokesman for Bloomberg says he will be withdrawing billions from the Quadrangle Group and putting it into a newly formed investment firm that will only handle his money.

The move comes a year after Quadrangle was connected to a scandal in which aides to the state comptroller were accused of shaking down investment executives for payments in exchange for pension fund business.

Bloomberg spokesman Jason Post says the move has nothing to do with the scandal, or with Quadrangle's performance.

Much of the team that had been managing the mayor's funds at Quadrangle will move to the mayor's new investment firm.