DID AG SPITZER CREATE NEW LAW DURING HIS MONDAY PRESS CONFERENCE?
On Monday May 24, 2004, Elliot Spitzer, the New York State Attorney General, filed a lawsuit against Richard Grasso, the former chairman of the New York Stock Exchange (“NYSE”). You can expect extensive coverage of this suit over the next several months, with the focus centered on the amount of Mr. Grasso’s compensation and whether Mr. Grasso deceived the NYSE board as part of the approval process. This will be a fascinating story because of the parties involved. We expect to see major players in the investment banking field called to testify. While a traffic accident will not propel the story, we do see parallels to Tom Wolfe’s Bonfire of the Vanities in which a prosecutor took on a “Masters of the Universe.” If fully litigated, this case is sure to provide everyone with a better understanding of the law governing conflicts of interest. During Monday’s news conference, Attorney General Spitzer made one comment about what is normally considered a mundane aspect of non-profit governance
