(US) The New York Stock Exchange has moved to restore investor confidence following the resignation of chairman Richard Grasso last week by appointing former Citibank chief John Reed as interim chairman.Reed, who retired from Citigroup in April 2000, has stated his intention to reform the NYSE’s currently riven board’s governance practices. He will be paid US$1 million for the task.
Reed told reporters he had come out of retirement as the NYSE was “simply too important” to decline any invitation to help.
“There are simply times in life when people ask you to do things and the right answer is to say ‘yes’,” he said.
Reed joined Citicorp in 1965 from the Massachusetts Institute of Technology where he has taught since retiring from Citigroup. Reed ran Citicorp for 14 years, during which time he turned it into the world’s largest financial services company.
Former chairman Grasso was forced out of the door after receiving a $139 million payout last month.