New York Attorney General Eliot Spitzer may file a civil lawsuit against former
Grassos successor, interim Chairman John Reed, met with Spitzer for an hour on Monday and asked if he would consider joining the investigation. Spitzer has proved a formidable adversary for brokerage firms and mutual funds that have behaved badly.
Reed and Spitzer reportedly discussed the findings of a probe into Grassos compensation conducted at Reeds request by former federal prosecutor Dan Webb. The Webb report, which has not been made public, is said to contain intimate details as to how Grassos pay was engineered and could serve as the blueprint for potential legal action.
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"My office will review the Webb report and conduct its own investigation to determine whether there were violations of New Yorks Not-for-Profit Corporation Law," Spitzer said in a prepared statement. "Subsequent to completing our review, we will determine what action, if any, is necessary and appropriate."
Reed was scheduled to meet with the new NYSE board members on Thursday to discuss the Webb report and decide whether to pursue the matter on its own or file joint actions with Spitzer.
