Human Resource Selection 9th Edition by Marianne Jennings

Exercise 3

Former Governor J. Fife Symington of Arizona was, during the 1980s, a director of Southwest Savings Loan, a federal thrift headquartered in Phoenix. Mr. Symington was also a developer who constructed two major commercial projects in Phoenix, with Southwest Savings Loan providing the loans for development. Southwest was a victim of the 1980s downturn and was taken over by the Resolution Trust Corporation (RTC). The RTC brought suit against Mr. Symington, alleging that he took advantage of his board position to obtain the loans. Mr. Symington said he was required to present the projects to the Southwest Board as part of the corporate opportunity doctrine and Southwest took the investment. Who is correct?