Dick Grasso, the former chairman of The New York Stock Exchange, will go to trial in New York. Grasso is being sued by New York state Attorney General Eliot Spitzer, who is attempting to reclaim at least $100m from Grasso's almost $200m final compensation package.
A spokesperson for Spitzer said that 'we're certainly pleased because we believed all along the case belonged in New York State court. The violations are against state not-for-profit laws, and we look forward to our day in court'. Grasso had argued that he could only be sued in federal court.
According to Reuters, US junk bond sales are on course to beat last year's record total of $127.8bn.
And if you're looking for a different kind of investment, perhaps you should consider rare stamps. Richard Purkis, Director at leading stamp dealer Stanley Gibbons, says that 'rare stamps will be the alternative investment product of 2005'. The Stanley Gibbons index of rare stamps has risen 73% in the last five years and a Penny Black was sold for a record $132,000 only last month.
It is said that many of the City's dealmakers are now investing in pre 1900 stamps and the smart money is on prices continuing to rise. A growing demand from collectors (there are said to be around 30 million worldwide) and a fixed supply of stamps surely make this an interesting market.
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