Washington (March 10, 2004) -- Sources in the nation's capitol report that the Securities and Exchange Commission has issued subpoenas to all New York Stock Exchange directors who served during the eight-year period Richard Grasso was chairman and CEO of the exchange.

The move is said to be part of efforts to determine how the exchange's board approved Grasso's $139.5 million compensation arrangement. Grasso resigned last September under pressure from investors.

The chief executives of Goldman Sachs, J.P. Morgan, Chase, and Bear Stearns are said to be among those on the receiving end of such subpoenas. According to published reports, the subpoenas ask each director a number of questions, which include what information they received before voting on Grasso's contracts, what they thought the contracts included, how the pay was determined and how such amounts were justified.

John Reed, the exchange's interim chairman, sent Grasso a letter last month requesting that he return $120 million. Grasso's attorney reportedly rejected the request and might seek an additional $50 million.

-- WebCPA staff

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