NYSE accepts Grasso 'war'

THE New York Stock Exchange has accepted former chairman Dick Grasso's challenge that if it did not apologise to him it was "war" and is preparing to fight him all the way in his bids to recover the $48 million (Pounds 26.2 million) he claims he is still owed by the world's biggest stock market, writes Richard Thompson.

Grasso, who was dismissed amid outrage-over his remuneration package, threw down the gauntlet to the NYSE in an interview on Monday.

He refused to give back any of the $139.5 million he had already received but would not pursue further payments if the NYSE said he was "an honourable man".

According to insiders, the Exchange's board, with the backing of most of its members, greeted the threat with derision and says it has no intention of issuing any apology to the former chairman.

That means the issue will almost certainly go to court. Few doubt Grasso's determination to get the money, even though he offered, in the midst of last year's scandal, to forego it.

A protracted court battle is likely to destroy what is left of the former chairman's public reputation, but people inside the NYSE say that he does not appear to care about that.

Exchange members who, barely 18 months ago thought Grasso was one of the best chairmen the market had ever had, now have little good to say about him and are angry at his attempt to recover the $48 million.

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