Another win for democracy. (I hope that after reading the below article you will know I am being sarcastic here). Not only Grasso will hold on to his $190 million but in the process $70 million was spent of the insurance money to defend him. If they ask again about the insurance fraud I think my lunch will not stay with me. Sorry to offend some of the weak in a gut people, but this really feels like a victory for the few. It is hard not to wonder, if that is reality or exception. I hope it is the latter. Read the following article:

Richard Grasso, the former New York Stock Exchange chairman, may get to keep his $190 million pay, after an appeals court threw out the lawsuit in which New York State said it was unreasonably high.

A state appeals court in Manhattan today dismissed the two remaining parts of the case against Grasso. It said ex-New York Attorney General Eliot Spitzer lost the authority to maintain the suit when the Big Board was converted to a for-profit business.

``Unless its reversed on appeal, Grasso has won this particular lawsuit, because theres nothing left, said Richard Schulman, a lawyer with Bryan Cave in New York who isnt involved in the case.

Grasso, 61, won another appeal in the case last week when the states highest court threw out four of six claims against him. Attorney General Andrew Cuomo can seek a top-court review of todays ruling, which wipes out the other two, in an effort to keep the case alive.

``Were reviewing the decision, Alex Detrick, a spokesman for Cuomo, said when asked about an appeal.

The state was seeking ``only a money judgment that would benefit the owners of the for-profit entity into which the not- for-profit has been converted, the appeals court said. The case ``vindicates no public purpose, it said in an opinion by Justice James M. McGuire.

``Dick Grasso is gratified by the ruling, his attorney Gerson Zweifach said, reading a statement for his client. ``His devotion to the stock exchange never wavered, and neither did his faith that he would be vindicated by the courts.

`I Told You So

The court also threw out a claim against Kenneth Langone, co-founder of Home Depot Inc. and former chairman of the NYSE compensation committee. Spitzer accused Langone of breaching his duty to the exchange by misleading its board on Grassos pay.

``My reaction is, I told you so, Langone said today in a telephone interview. ``There was never a case here. What more can we say? The enormous waste was a travesty.

Langone said he, Grasso and NYSE directors spent more than $70 million fighting the case, all covered by insurance.

``I would like to ask the attorney general how much his office has spent since it started this lawsuit four years ago, Langone said.

The appeals court said the judge in Grassos case, Charles Ramos, was wrong in 2006 when, without holding a trial, he ordered the ex-chairman to repay portions of his retirement pay estimated at $112.2 million by the state. And Ramos was wrong in holding that the states right to sue outlived the Big Boards status as a not-for-profit, the appeals court said.

NYSE Board

The court disagreed with Ramoss conclusion that the exchange board was not fully informed about Grassos retirement benefits. There was evidence the board knew of the total amount in Grasso employment agreements and at one point took actions to limit its growth, the judges said.

Spitzer sued Grasso in 2004, eight months after he was forced from his job over the amount of his pay. The state claimed the $190 million in compensation in the top job violated the state law saying officers of not-for-profits must be paid ``reasonable amounts.

Grasso spent 35 years at the exchange, rising from clerk to chairman. New Chief Executive Officer John Thain turned the NYSE into a publicly traded company in 2006.

``This ruling recognizes the substantial and significant changes the New York Stock Exchange has undergone since the case was brought, exchange spokesman Richard Adamonis said in an interview.

Webb Report

After directors forced Grasso out, a report for the exchange by attorney Dan K. Webb of the Chicago law firm Winston & Strawn concluded the ex-chairmans pay was ``far beyond reasonable.

Grasso got about $150 million in excess pay in the chairmans job, Webb said.

Cuomo continued to pursue the case after the 2006 elections when he was elected attorney general and Spitzer became governor. Spitzer resigned in March of this year amid a federal investigation of a call-girl ring.

The appeals panel today upheld the dismissal of Grassos cross-claims against the exchange for breach of contract, defamation and disparagement. The defamation claim was also brought against the interim chairman and chief executive officer at the time, John S. Reed.

Concerning the breach of contract claims, the court said Grasso had resigned from the exchange and wasnt fired, as he had argued.

The case is New York v. Grasso, Index 401620/04, New York Supreme Court, Appellate Division, First Department (Manhattan).