Former New York Stock Exchange Chairman Dick Grasso has reportedly been issued with a subpoena by the Securities and Exchange Commission, which is looking into charges that he may have participated in efforts to shore up the falling share price of American International Group.
The report from CBS Market Watch, reflects charges that first surfaced over a year ago in connection with Grasso’s lucrative $187 million compensation package. He resigned as Chairman over the controversial payments.
AIG’s shares, which were trading at over $100 prior to September 11, went into a decline, which its Chairman Maurice “Hank” Greenberg, felt did not reflect the actual value of the insurance giant. He reportedly informed Grasso of his discontent, and urged that something be done to more adequately support AIG’s share price.
The SEC is trying to determine if Grasso subsequently pressured market specialists to buy AIG shares. The report also stated that Greenberg was a member of the NYSE’s compensation committee when Grasso’s salary was approved.