Calendar of Union Events

Wednesday, April 3, 2013

Senator Grassley Grills Sexton on NYU Loans, Tax-Exempt Status

U.S. Senator Chuck Grassley has a lot of tough questions for NYU President John Sexton.

Back in February, Senator Grassley raised alarm bells about fishy NYU loans and "severance payments" to former NYU Executive VP Jack Lew. Now Grassley has followed the trail of big bonuses and mortgage subsidies back to the source: NYU's leadership.

In his March 15 letter to Sexton, Grassley asks "whether NYU uses its tax-exempt status primarily to benefit its students or to compensate university administrators." He demands information about the millions of dollars in interest-free loans NYU gave out to top administrators and the "severance bonus" Jack Lew received when he left NYU for a higher-paid position at Citigroup.

You can read the full letter here.