John Reed, interim chairman and chief executive of the New York Stock Exchange (NYSE), has initiated a legal battle with his predecessor, Dick Grasso, signalling his determination to recover part of Grasso's $188m (€155m) pay package.

The NYSE has brought in Eliot Spitzer, the New York state attorney general, to determine whether it can use state laws to broker a settlement with Grasso, who resigned in September after criticism over his pay.