It's Always 2003 Somewhere

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Just when he thought he was getting out, they pull him back in.
In this case, it's Hank Paulson who thought he was getting out--the outgoing head of Goldman Sachs is preparing to leave Wall Street for his new role as the next Treasury Secretary--and Richard Grasso, the former boss of the NYSE, who may pull him back in.
CNBC's Charles Gasparino is reporting that Grasso served Paulson with a subpoena. Or, more likely, lawyers who work for the one served a subpoena to lawyers who worked for the other.
New York Attorney General has launched a lawsuit against Grasso, claiming his pay package at the NYSE violated New York laws requiring that compensation at non-profits be reasonable. Spitzer wants Grasso to return $100 million of the $140 million he got in compensation while running the NYSE. At the time the NYSE was a non-profit organization.
Paulson sat on the board of the NYSE and is said to have led the push to force Grasso to resign amidst public scandal over the size of the pay package in 2003. Despite this, Paulson's testimony may help Grasso since Paulson has praised Grasso's work as an executive. (Alternatively, and we're just speculating here, Grasso may just want a chance to embarrass one of the people who forced him out of the NYSE.) Gasparino reports that Grasso's lawyers fear that once Paulson assumes his job at the Treasury he may attempt to claim an executive branch immunity and avoid being forced to testify.
Spitzer. Grasso. Paulson. It's 2003 all over again. But this time its personal.

Paulson Subpoena
[SquawkBlog]

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