Chapter 18, When to Fight, When to Fold Summary and Analysis

Jack sees government at its best and at its worst. In 1991, accusations by Ed Russell, a disgruntled former general manager in GE's industrial diamonds business, result in investigations by the Department of Justice, followed by grand jury indictments. Russell falsely accuses his boss of price-fixing with DeBeers of South Africa. The FBI and others wanting to make names for themselves by bringing down a big company spend 3 years and an enormous amount of money chasing nothing. The assistant attorney general hires outside lawyers at the government's expense. GE attorneys destroy the government's conspiracy theory, and the criminal antitrust case is dismissed.

Jack preaches integrity, but a year earlier in 1990, it is discovered that an employee, Steindler, has a joint Swiss account with an Israeli air force general for the...