Researches the choice confronted by AIG's board on whether to join investor and ex-CEO Maurice Greenberg's litigation against the U.S. government. The suit, asserted by super-lawyer David Boies (of Bush v. Gore and California gay marriage fame), asserts that in September 2008 the U.S. arbitrarily set aside the rights of AIG's investors - violating the Fifth Amendment by taking private property without just compensation - while preserving investor rights in the other troubled financial institutions, also comprising the Goldman Sachs whose prior CEO was the then Treasury Secretary.
The U.S. government moved to negate the case claiming that it has wide discretion in times of disaster, but a federal judge lets the suit to go. The case raises two issues central to understanding capitalism: (1) the importance of and limits to property rights; and (2) the function of the state in selecting between varieties of capitalism, here between oligarchic and entrepreneurial capitalism.
PUBLICATION DATE: April 04, 2013 PRODUCT #: 113124-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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