Richard Grasso: Not going without a fight

Writing in the Wall Street Journal, Mr Grasso said he would sue the NYSE in an effort to claim his controversial $188.5m compensation package in full.

He said he would also seek damages for defamatory media "leaks", allegedly placed by his successor, John Reed.

The move comes in response to a lawsuit filed against Mr Grasso on Monday aimed at clawing most of the money back.

The lawsuit was filed by New York attorney general Eliot Spitzer, who said Mr Grasso's compensation package was "wholly inappropriate and illegal".

Defiance

Mr Spitzer, who has been leading a crackdown on corporate wrongdoing for the last two years, said he aimed to force Mr Grasso to repay "at least" $100m of the $140m he has received from the NYSE so far.

In a show of defiance, Mr Grasso said on Tuesday that he had asked his lawyers to file a claim for the outstanding $48.5m.

Mr Grasso also cast doubt on Mr Spitzer's motives, alleging that his lawsuit "smacked of politics".

Mr Spitzer said last year that he was considering standing for the governorship of New York state in 2006.

Mr Grasso stepped down as NYSE chairman in September last year after financial market watchdogs queried the size of his compensation package.

In his Wall Street Journal article, Mr Grasso also contradicted the NYSE's claim that he had resigned willingly.

"The Exchange board... turned round and fired me for receiving the same compensation that the board had awarded," he wrote.

The package comprises savings, retirement benefits and other incentives built up during Mr Grasso's career at the NYSE.