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CNBC EXCLUSIVE: CNBC TRANSCRIPT: KEN LANGONE, FOUNDER OF HOME DEPOT AND INVEMED ASSOCIATES CHAIRMAN & PRESIDENT RESPONDS TO FORMER NEW YORK GOVERNOR ELIOT SPITZER TODAY ON CNBC'S "SQUAWK BOX."

WHEN: TODAY, TUESDAY, MAY 12TH

WHERE: CNBC'S "SQUAWK BOX"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Ken Langone, Home Depot Founder and Invemed Associates Chairman & President, today on CNBC's "Squawk Box."

All references must be sourced to CNBC.

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LANGONE: YOU KNOW, WE ALL HAVE OUR OWN PRIVATE HELLS. I HOPE HIS PRIVATE HELL IS HOTTER THAN ANYBODY ELSE'S.

SPITZER: WITH RESPECT TO KEN LANGONE, WE SUED HIM FOR HIS INVOLVEMENT IN GIVING DICK GRASSO $139 MILLION FOR RUNNING A NOT FOR PROFIT. ONE OF THE MOST EGREGIOUS EXAMPLES OF CORPORATE PAY ABUSE I'VE EVER SEEN. HE SPEAKS FROM A DIFFERENT WORLD VIEW OF CORPORATE CEO BEHAVIOR, AND HE'S JUSTIFIED CORPORATE CEO PAY THAT MOST IN THE WORLD THINK IS NOT ONLY ABUSIVE BUT BORDERS ON THEFT.

KERNEN: THAT WAS ELIOT SPITZER LAST WEEK TALKING ABOUT KEN LANGONE. KEN, HE TALKED ABOUT -- GOVERNOR SPITZER TALKED ABOUT THE WEBB REPORT, AND I SAID THAT, WHEN HE WAS TALKING ABOUT THE GRASSO SITUATION, I SAID, WELL, DIDN'T GRASSO BEAT THE GOVERNMENT ON THIS? DIDN'T YOU LOSE? HE SAID NO.I THINK HE REFERRED TO IT AS SOME TYPE OF TECHNICALITY OR THAT THE TRUTH WAS IN THE WEBB REPORT.

LANGONE: THE MOST DISCOURAGING THING ABOUT WHAT I SAW LAST WEEK WAS I DON'T THINK HE'S LEARNED A THING.I DO THINK THAT GOING THROUGH AN EXPERIENCE LIKE HE'S GONE THROUGH, WHAT HE'S PUT HIS FAMILY THROUGH -- LOOK, NUMBER ONE, THE WEBB REPORT, IF YOU READ ALL THE DEPOSITIONS, THE WEBB REPORT WAS LAWYERS TAKING NOTES DOWN, NO TESTIMONY, NO UNDER OATH. WHEN WE GOT UNDER OATH, THE NUMBER OF PEOPLE THAT SAID, PROMINENT PEOPLE THAT SAID, I DIDN'T SAY THAT. I DIDN'T MEAN THAT. THAT'S ONE. TWO, HE MADE THE REMARK THAT JOHN REED -- HE DIDN'T SAY IT OUT LOUD.JOHN REED SAID, YOU'VE GOT TO TAKE THIS CASE. JOHN REED IN HIS DEPOSITION SAID, I DID NOT SAY THAT. I HAD AN OBLIGATION TO GIVE HIM THE REPORT, AND I DID. BUT LET ME -- BECAUSE I THINK THE PUBLIC NEEDS TO UNDERSTAND SOMETHING. THE NEW YORK STOCK EXCHANGE WAS A NOT FOR PROFIT LIKE THE NBA, LIKE THE NFL. THE NEW YORK STOCK EXCHANGE, A, PAID INCOME TAXES, B, PAID REAL ESTATE TAXES, C, PAID SALES TAXES. IN THE YEAR BEFORE 2000, Y2K, WE PAID OVER $80 MILLION IN SALES TAXES FOR THE EQUIPMENT AND GEAR THAT WE BOUGHT TO BE READY FOR THE FLIP. NOW, LET'S TALK ABOUT NOT FOR PROFIT. FIRST OF ALL, I HOPE MR. SPITZER WILL DO ONE THING IN HIS PERIOD OF REHABILITATION. HE OUGHT TO GET INVOLVED IN SOMECHARITIES SO HE REALLY UNDERSTANDS WHAT CHARITIES ARE. I SPEND -- I'M PROUD OF THIS.I SPEND MORE THAN HALF MY LIFE RIGHT NOW ON CHARITIES, AND IT'STHE MOST REWARDING THING I'VE EVER DONE, WHETHER IT'S ROBINHOOD OR -- BY THE WAY, LAST FRIDAY, DAVID BROOKS WROTE A PIECE ABOUT THIS CHARTER SCHOOL UP IN HARLEM. I DON'T KNOW IF YOU READ IT. I'M CHAIRMAN OF THAT CHARTER SCHOOL. YOU TALK ABOUT EXCITEMENT.

QUINTANILLA: YOU MEAN THE CHILDREN'S ZONE?

LANGONE: YES, SIR. HARLEM'S CHILDREN'S ZONE. THE REAL HEROES ARE JEFF AND THE PEOPLE THAT WORK UP THERE AND STAN DRUCKENMILLER GOT INTO THIS THING EARLY AND HE'S PASSIONATE ABOUT IT. JEFF, THE SAME THING. BACK TO MR. SPITZER. WE HAVE 1,300 MEMBERS OF THE NEW YORK STOCK EXCHANGE. THEY ELECTED US.THIS WAS OUR MONEY, THE MEMBERS' MONEY. THE BOARD UNANIMOUSLY, UNANIMOUSLY GAVE DICK A VOTE OF CONFIDENCE EIGHT DAYS BEFORE HE WAS FIRED. EVERY NICKEL THAT DICK GOT REFLECTED 37 OR 36 YEARS OF SERVICE. THE REASON HE GOT SO MUCH WAS THEY HAD THIS PLAN IN PLACE THAT WAS BEFORE WE GOT THERE. AND THE ACCUMULATION OF CREDIT DROVE THAT NUMBER.

QUICK: DEFERRED COMPENSATION.LANGONE: ABSOLUTELY. NOW, THE OTHER THING IS THIS.WE AS DIRECTORS -- I'M ON A LOT OF CHARITABLE BOARDS -- RONALD McDONALD, DAMON RUNNIAN, HARLEM CHILDREN'S ZONE, NYU. I HAVEN'T GOTTEN PAID A NICKEL.EVERY MEMBER OF THE NEW YORK STOCK EXCHANGE BOARD OF DIRECTORS GOT PAID FEES. IN FACT, I HAD A PROMINENT PUBLIC OFFICIAL WHO, AFTER HE LEFT OFFICE AND JOINED THE BOARD OF THE STOCK EXCHANGE, CAME TO ME AND WANTED TO KNOW COULD WE RAISE DIRECTOR'S FEES? HE KNOWS WHAT HE'S TALKING ABOUT HERE. NOW, HE SAID ON A TECHNICALITY. NUMBER ONE, HE GOT A JUDGE, A JUDGE IN THE SUPREME COURT OF THE STATE OF NEW YORK TO ISSUE A SUMMARY JUDGMENT. THAT WAS APPEALED TO THE APPELLATE DIVISION. THAT'S THE NEXT LEVEL ABOVE. 4-0 VOTE, BOTH IN FACT AND IN LAW THEY THREW OUT THAT JUDGMENT. THERE WAS NO TECHNICALITY HERE.THEY SAID HOLD IT. NOW, WE GO TO THE NEXT LEVEL, WHICH IS THE COURT OF APPEAL, THE HIGHEST COURT IN THE LAND, 7-0. THEY SAID MR. SPITZER ACCOMPLISHED ONE THING. HE PIERCED THE SEPARATION OF POWER AND LAW. WHAT WOULD HE DO? FIRST OF ALL, WHEN THIS ALL STARTED, I SAID, TRUST ME, I'LL BET MY LAST DOLLAR, THIS WILL NEVER GET TO A TRIAL WHILE HE IS STILL RUNNING FOR GOVERNOR. NOW, WHAT'S MY TAKEAWAY?LET ME GIVE YOU THE BOTTOM LINE. I FEEL HORRIBLE FOR HIS WIFE AND HIS DAUGHTERS.I CAN ONLY IMAGINE THE HUMILIATION AND SHAME, THE EMBARRASSMENT. REGARDING HIM, I CAN ONLY IMAGINE HOW TORMENTED HE IS. HE'S A PATHETIC SOUL. HOW TORMENTED HE IS.HE HAD ALL THIS POWER. HE WAS THE MOST FEARED GUY IN THE WORLD, ON AND ON AND ON. NOW ALL OF A SUDDEN, HE'S OUT. CHASED FROM OFFICE, HUMILIATED FOR THE WORST POSSIBLE REASONS. I THINK -- I HEARD HE'S GETTING READY TO RUN AGAIN. IF HE IS, I THINK HE OUGHT TO BEFORTHRIGHT WITH THE PUBLIC AND SAY, HERE'S EVERYTHING ABOUT ME YOU SHOULD KNOW, INCLUDING THAT, YOU KNOW, YOU NOTICE THAT HE NEVER PUSHED BACK WHEN I SAID I'D BEEN TOLD, AND I DID NOT HAVE SPIES.I DID NOT HAVE PRIVATE DETECTIVES. YOU'D BE AMAZED THE NUMBER OF PEOPLE WHO CALLED ME TO SAY, YOU OUGHT TO KNOW THIS.YOU OUGHT TO KNOW THAT. THAT VERY DAY I GOT THE CALL ABOUT HOW HE WAS WAITING IN LINE. IF HE WAS GOING AFTER SOMEBODY, HE'D GO AFTER THEM FOR MONEY LAUNDERING OR INAPPROPRIATE USE OF THE MAILS OR WHATEVER THE LAWS ARE. THE LAST THING IS I BELIEVE THISMAN DESTROYED AS MUCH VALUE AS ANYBODY ELSE IN AMERICA. HANK GREENBERG, IF YOU GO LOOK AT THE NUMBERS AT AIG, FROM WHENHE LEFT IN THE SPRING OF '05, AIG LOADED UP FROM THAT POINT FORWARD ON ALL THESE WHAT ARE NOW CALLED TOXIC ASSETS.HANK GREENBERG RAN A GREAT BUSINESS. HE CHASED HANK GREENBERG'S SON FROM MARSH, AND HE PUT -- HE WORKED IT OUT THAT HIS BUDDY TRIKOWSKI, WHO WAS HIS BOSS IN -- I FORGET WHETHER IT WAS THE U.S. ATTORNEY'S OFFICE DOWNTOWN, WHO WAS HIS BOSS. AND WHAT?THAT GUY GETS THROWN OUT.LOOK AT THE MESS MADE AT MARSH MACK. LET'S GET ON WITH OUR LIVE. I WISH HIM WELL.I HOPE HE'LL REFLECT ON WHAT HE'S DONE TO HIS FAMILY AND TRY AND DO WHAT HE CAN TO MAKE AMENDS THERE.

QUINTANILLA: DOES HE HAVE THE RIGHT TO SPEAK?

LANGONE: I THINK ANY AMERICAN HAS A RIGHT TO SPEAK.

QUINTANILLA: IT DOESN'T BOTHER YOU THAT HE'S TRYING THIS PUBLIC REHAB THING.

LANGONE: NO. EXCEPT I THINK IF HE WANTS TO PROVE TO US HE'S A DIFFERENT GUY -- OR AT LEAST HE'S LEARNED FROM HIS ERRORS HE ISN'T A DIFFERENT -- HE OUGHT TO BE FORTHRIGHT AND HONEST. WHAT I SAW LAST WEEK WAS NOT HONEST. IT WAS NOT A TECHNICALITY. TO CALL US -- I KNOW A NOT FOR PROFIT. I HAVE FORGOTTEN MORE ABOUT CHARITIES THAN HE'LL EVER KNOW. I'M NOT BRAGGING OR SAYING WHAT I'VE DONE PERSONALLY, WHAT MY WIFE HAS DONE PERSONALLY. THIS GUY, IF HE REALLY WANTS -- IF HE'S INTO REPENTANCE, LET HIM GO OFF AND WORK IN A SOUP KITCHEN ONE DAY A WEEK OR WORK HERE. THE TRAGEDY IS HE WAS BORN ON THIRD BASE AND HE THOUGHT HE HIT A TRIPLE. IT'S THAT SIMPLE.

QUINTANILLA: IS IT FAIR TO COMINGLE HIS CHARACTER WITH HIS KNOWLEDGE OF LAW OR HIS PURSUIT OF JUSTICE?

LANGONE: FIRST OF ALL, HIS PURSUIT OF JUSTICE WAS PERVERTED. I KNOW THAT FIRSTHAND.ONE MORE THING, DO YOU KNOW HOW MUCH WE SPENT, ALL THE DIRECTORS, THE NEW YORK STOCK EXCHANGE, GRASSO -- DO YOU KNOW HOW MUCH WE SPENT ON LEGAL EXPENSES?

QUICK: HOW MUCH?

LANGONE: OVER $80 MILLION. ALL I THINK ABOUT IS HOW MANY KIDS COULD I EDUCATE? HOW MANY RESEARCH PEOPLE COULD IHAVE FUNDED, DAMON RUNNIAN? I MEAN, HE DIDN'T CARE. I HAD HOPED HIS PERIOD OF REHABILITATION, HE WOULD HAVE --LAST WEEK IT WAS ELIOT ALL OVER AGAIN.

KERNEN: TO PEOPLE THAT SAY IT'S A PRIVATE MATTER AND WE SHOULDN'T FOCUS ON WHAT PEOPLE DO IN PRIVATE, IF YOU'RE A GOVERNOR, YOUR JUDGMENT IS SOMETHING THAT'S PARAMOUNT. IT SEEMS LIKE A LITTLE BIT OF A -- IT ALMOST SEEMS LIKE THERE'S A COUPLE OF SCREWS LOOSE, DOESN'T IT? I'M NOT GOING TO JUDGE EITHER.BUT WHEN YOU'RE GOVERNOR, IT CAN'T GO ON.PEOPLE ARE FINALLY GOING TO FINDOUT, AND ALL THIS IS GOING TO COME DOWN ON TOP OF YOU.

QUINTANILLA: PEOPLE HAD THE SAME DISCUSSION ABOUT CLINTON.

LANGONE: FAIR POINT.

KERNEN: IT'S RECKLESS FOR A GUY.

LANGONE: BUT THIS GUY IS ATTORNEY GENERAL WHO GOES AFTER PEOPLE FOR PROSTITUTION.COME ON.


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