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Lawsuit against Grasso over pay nearing

U.S. regulators expect to sue former New York Stock Exchange Chairman Richard Grasso over his large pay package by the end of the month, the New York Times said on Thursday.
/ Source: Reuters

U.S. regulators expect to sue former New York Stock Exchange Chairman Richard Grasso over his large pay package by the end of the month, the New York Times said on Thursday.

The lawsuit is expected to seek the return of some of the $139.5 million in compensation Grasso received, the Times said, citing people involved in the investigation.

Exchange directors who approved the payment, including David Komansky, the former chief executive of Merrill Lynch & Co. ;Richard Fuld, the current chief executive of Lehman Brothers; and Maurice Greenberg, the chairman and chief executive of AIG, have been subpoenaed by New York Attorney General Eliot Spitzer, the Times said.

John Reed, the NYSE's interim chairman, has asked Grasso to repay $120 million to the exchange.

The U.S. Securities and Exchange Commission is also looking into how exchange directors approved the compensation.

Spitzer's office, Lehman Brothers, Merrill Lynch and AIG were not immediately available to comment. Richard Grasso could not be located for comment.