Bell Rings In Post-Grasso Era
On what was otherwise a sullen day on Wall Street after Richard Grasso’s resignation from the New York Stock Exchange, a bit of humor peeked through the clouds Thursday.
The deposed NYSE chief was scheduled to be the lunchtime speaker at a mutual fund conference a few blocks from the exchange, but a lawyer for the group sponsoring the event told attendees that Grasso would be a no-show.
“Unless you flew in from Mars, you can probably figure out that Dick Grasso isn’t speaking at lunch,” said Ari Burstein, associate counsel of the Investment Company Institute. “I think we have karaoke set up.”
Throughout Manhattan’s financial district, Grasso’s ouster -- and the fairness or lack thereof, depending on one’s view -- dominated conversation.
Some people lamented his exit, which came abruptly Wednesday night as a barrage of criticism over Grasso’s $140-million pay package battered the NYSE. Many were angry at the exchange directors who rubber-stamped his pay.
And just about everyone had trouble believing that the ubiquitous Grasso, who started as an $81-a-week clerk and became perhaps the most recognizable figure on Wall Street, was gone.
“There was some amazement that Grasso actually resigned,” said John Wheeler, head of stock trading at the American Century mutual fund group. “It was melancholy with a dose of optimism that we may see meaningful changes going forward.”
The comments came as New York braced for the effects of Hurricane Isabel, and the darkening sky and gusting winds seemed designed to match the moods of some Grasso supporters. They lashed out at the NYSE directors who approved Grasso’s pay only to later push him out for accepting it.
Who wouldn’t take $140 million if it was offered, they asked plaintively.
“I think some people need to take a long, hard look at what their role was,” Kenneth Polcari, managing director of independent floor brokerage Polcari/Weicker, said of the Big Board directors.
Not everyone, though, sided with Grasso.
One young floor trader who declined to give his name said many were happy to see him go.
“There was no remorse for Grasso on the floor,” he said. “He was thinking more about himself than about the floor.”
The Grasso drama didn’t seem to have much effect on investors, as the Dow Jones industrial average rose 113 points.
Gauged by the number of tourists who gathered outside the NYSE building, the pay furor didn’t seem to dim public fascination with the exchange.
“The credibility of the exchange is still there,” said Herbie Sutherland, a retired chemical engineer from Surrey, England.
If there was one universal sentiment on Wall Street, it seemed to be a desire to get beyond the controversy.
“I don’t think anybody’s happy [but] there is a relief that we can finally move forward,” said Anthony Corso, senior managing director at LaBranche & Co., the Big Board’s leading specialist firm.
