View Full Version : Grasso: *2nd NYSE stays in city

October 31st, 2002, 09:16 AM
NY Post...



October 31, 2002 -- Dick Grasso aims to keep any second New York Stock Exchange trading floor in the city.
"Do you think I want an asterisk next to my name saying I took half the stock exchange out of New York?" Grasso asked. "No way."

At a luncheon speech at the Princeton Club to the Real Estate Lenders Association, Grasso pledged that the bankers wouldn't be financing a new stock exchange in the boondocks.

Instead, citing his relationship with Mayor Bloomberg, he stressed the close public-private bonds the exchange forged with the city after Sept. 11.

Grasso is working with Bloomberg and the governor to ensure the NYSE is "in an invulnerable situation," and could continue to operate - or become operational as quickly as possible - should any emergency affect its downtown location.

"They understand the importance of the institution, and if we have to do it in two places, we are looking at alternative sites within the five boroughs," Grasso said.

Grasso declined to "contribute to the debate" over the draft white paper issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Treasury, and the Securities and Exchange Commission. That report calls for any second NYSE setup to have completely separate facilities, infrastructure and personnel - in essence forcing the stock exchange to develop a second trading floor far outside the city.

"I've been candid about whether I need to look out of the city," Grasso explained. "It would be dilutive of the city's financial services industry, and we're not going to do that unless it is an absolute last of last resorts. We are completely aligned: So goes the stock exchange, so goes the City of New York."

A call for comment to Deputy Mayor Dan Doctoroff - who oversees city economic development - was not returned before press time.


- Loves N.Y.

October 31st, 2002, 10:04 AM
Daily News...

Grasso promise to state, not city


New York Stock Exchange chairman Dick Grasso vowed yesterday to build the Big Board's second trading floor in New York City - but an exchange spokesman later narrowed the promise.

Appearing at a luncheon held by the Real Estate Lenders Association, Grasso moved to allay fears that the NYSE would build a site hundreds of miles outside New York City in response to pressure from federal regulators.

"We will not go outside the city - it would be dilutive," Grasso said, according to the web site of Crain's New York Business. "We're not going to do that except as a last of last resorts."

But an exchange spokesman said late yesterday Grasso had committed to keeping the second facility inside New York State - not in the city.

"We're looking both inside and outside the five boroughs, all within New York State," NYSE spokesman Ray Pellecchia said.

A recent study by federal regulators, first disclosed by the Daily News, urged financial firms to establish backup sites 200 to 300 miles away - sparking fears the NYSE and other Wall Street employers would move thousands of jobs as far away as Richmond, Va., or Portland, Maine.

Grasso meant to douse those fears yesterday, Pellecchia said. For now, the NYSE is sticking with its plan to look for sites in places like Westchester County as well as in the outer boroughs.

The Sept. 11 terrorist attacks closed the exchange for four trading days - its longest shutdown since the 1930s. Last summer, the exchange said it would create a second active trading floor outside lower Manhattan that could keep running in the event of another attack.

The NYSE already has an emergency backup site, believed to be in Brooklyn.

October 31st, 2002, 03:54 PM
(Edited by Gulcrapek at 5:44 pm on Oct. 31, 2002)

October 31st, 2002, 04:17 PM
Oh gee, thanks mister. We were real anxious about this one.