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Spitzer to sue Grasso over NYSE pay deal
NYNewsday.com ^ | May 20, 2004 | BY PRADNYA JOSHI

Posted on 05/23/2004 9:39:27 AM PDT by LowCountryJoe

New York Attorney General Eliot Spitzer intends to sue former New York Stock Exchange chairman Richard Grasso as early as Monday or Tuesday to recover a portion of the controversial $139.5 million pay package he received last year, a source familiar with the matter said Thursday.

(Excerpt) Read more at nynewsday.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Extended News; News/Current Events
KEYWORDS: grasso; lawsuit; nyse
I'm scratching my head here for two reasons:

1) I can't figure out why no one is really discussing this queer story. And;

2) The [full] story tries to explain the legal precedent but I for the life of me do not see the grounds for such lawsuit. What am I missing? Help!

NYNewsday forces excerpted articles!

1 posted on 05/23/2004 9:39:27 AM PDT by LowCountryJoe
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To: LowCountryJoe
People are upset by huge, grossout salary and bonus overpayments to a guy with political connections. The "OMG" meter was nearly blown out when his $ 139 million earnings were made public. Its kinda like how people were grossed out when Neil Goldschmidt recently admitted to molesting a 14 year old girl for nearly two years. The "OMG" meter was blown up totally. People are still shaking their heads in disbelief. The guy committed lewd acts with a child and then was allowed to cover it up.

The state of Oregon should have been on Goldschmidt's case years and years ago.

2 posted on 05/23/2004 10:25:26 AM PDT by ex-Texan
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To: ex-Texan
With all due respect, a large salary approved by the NYSE and sexual molestation are 2 quite different things.
3 posted on 05/23/2004 11:23:32 AM PDT by what's up
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To: LowCountryJoe
The [full] story tries to explain the legal precedent but I for the life of me do not see the grounds for such lawsuit. What am I missing? Help!

The New York Stock Exchange is a non-profit corporation and as such falls under the jurisdiction of the New York Attorney General.

4 posted on 05/23/2004 11:29:45 AM PDT by sarcasm (Tancredo 2004)
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To: sarcasm
The New York Stock Exchange is a non-profit corporation and as such falls under the jurisdiction of the New York Attorney General.

That doesn't help me any. So the NYSE is a non-profit - in fact I just read a piece contemplating why we even need the NYSE model since shares can be transacted like they are with other marketmakers used in the NASDAQ model - but this shouldn't mean that the New York State AG or any government office has the right to meddle in the compensation agreements of the NYSE. Isn't any outrage and accountability reserved for the publicly traded companies who are listed on that exchange?

5 posted on 05/23/2004 11:37:43 AM PDT by LowCountryJoe (#40 ARZ)
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To: LowCountryJoe
but this shouldn't mean that the New York State AG or any government office has the right to meddle in the compensation agreements of the NYSE.

It's my understanding that he has the legal responsibility to do just that.

6 posted on 05/23/2004 11:41:42 AM PDT by sarcasm (Tancredo 2004)
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To: sarcasm
It's my understanding that he has the legal responsibility to do just that.

I can see this! But why is it within the AG's scope? And, by chance, do you agree with this?

Can I at least get the first question answered...by someone?

7 posted on 05/23/2004 11:53:13 AM PDT by LowCountryJoe (#40 ARZ)
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To: LowCountryJoe

They fall in the same legal category as charities (e.g. United Way) and I certainly support state involvement in auditing their finances. If they didn't want state intervention they shouldn't have registered in that fashion


8 posted on 05/23/2004 12:02:33 PM PDT by sarcasm (Tancredo 2004)
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To: what's up
I realize that and note your very good point. But some people believe that Grasso's HUGE salary is an indicatior of corruption. Such inordinately HUGE salary's generally indicate corruption of some sort.

Goldschmidt also was earning a HUGE salary in Portland the posts he held after his elective positions. Also, indicating corruption if some sort. Moving professionall from child molestor to political hack and political string puller is a quite leap to make? Is it, really ? Goldschmidt is a HUGE embarrassment to Oregon and the whole political establishent. Elected officials had to know about his repeated raping of a 14 year old girl. The Oregon State Bar must have known all about it (They know everything that happens in real time. Yada, Yada, Yada. Just ask a Oregon lawyer.)

The D.A. must have known all about it. Yet, they allowed it to be pushed like ripe garbage under the rugs of city hall. Shame on Oregon. "Shame, Shame, Shame" -- just like the song.

Just my personal political opinion and protected free political speech under the Constituion. Feel free to flame away.

9 posted on 05/23/2004 1:04:27 PM PDT by ex-Texan
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To: ex-Texan

texan, i've not been following this too closely, so correct me if i'm wrong, but did not Mr. Grasso's payout represent substantial amounts of payment he differed during his previous 20 years of service on NYSE? He was paid alot less then market value for his job on the understanding that there would be a large - and previously negotiated - buyout at the end.

this is no different (in my layman's view...) than our 401K's or IRA's - we have a portion of our income made tax-exempt now, on the expectation that it will grow faster for us in the future when we ourselves retire.

But I haven't heard much of this on the few times I've scanned the news for this item. If anything, the little I've read always takes the emotional attack angle against Grasso, painting him somehow as a capitalistic villain for making so much money (and accompanied by the usual leftist dirge of what "the good people" could do with the money he's unfairly being paid...).


CGVet58


10 posted on 05/23/2004 2:47:32 PM PDT by CGVet58 (God has granted us liberty, and we owe Him courage in return)
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