While Justice Sleeps(73)
“Why the controversy?” Davis queried.
“Because under the Exon-Florio Amendment to the American Foreign Trade Act, the president has the authority to suspend or prohibit any foreign acquisition of a company that poses a national security threat. You may recall that President George W. Bush almost used this same provision to stop the sale of a port in Florida to a Middle Eastern company.”
Phoebe asked, “Does President Stokes believe an Indian company poses the same risk?”
“It’s a good question. No president wants to be seen as a sticking point in commercial dealings.”
Davis nodded. “And President Stokes is basically saying they should have gotten his permission. This sounds more like something President Putin would say.”
Scott gave him a chiding look. “Not exactly. President Stokes asserted that biochemical and biogenetic technology shared between GenWorks and Advar would place the nation in jeopardy because the Indian company would be the surviving entity.”
“But Nigel Cooper has said he intends to head up their American division.”
“So he says, but anyone who has watched these mergers in the past knows that what gets promised doesn’t necessarily happen. President Stokes has been consistent about his objection to genetic testing and stem cell research.”
Phoebe smiled at the invisible audience. “India has become a major player in the international debate about human genetic testing, and they have been much more lenient than the U.S. Some members of Congress have introduced bills to criminalize the type of genetic research they’re conducting. President Stokes may be afraid that allowing the merger will put him in a tough position about bioethics right before the election.”
Davis chimed in, “There has also been a great deal of tension between the president and India since the Indian parliament refused to approve a trade deal President Stokes promoted heavily. Is the president’s decision also revenge for their refusal to do a deal he’d staked his reputation on, Scott?”
“Insiders have speculated about that, but I’ve seen no proof.”
“Do you think President Cadres would have made such a controversial decision?” prodded Phoebe.
Scott shook his head. “Conventional wisdom says no. President Cadres was a conservative, but his fatal heart attack means we’ll never know. President Stokes is certainly more aggressive on foreign affairs, but what would we expect from a decorated war hero? India has been accused of aligning itself with nations angry about American trade policy. President Stokes clearly believes this is his responsibility.”
Davis nodded sagely. “Thank you, Scott.” A second screen popped up to replace the reporter. “We are now joined by renowned political scientist and judicial scholar Dr. Christina Greer. Thank you for joining us.”
“Delighted to be here.”
“The Supreme Court is expected to issue a ruling on GenWorks and Advar before ending its term on June 30, little more than a week from now, correct?”
Greer responded, “The Fourth Circuit upheld the president’s decision, and GenWorks appealed. The Supreme Court took up the case and heard oral arguments in March. Wall Street is watching for this decision, but the way it will go is a toss-up.”
“And what was Justice Wynn’s involvement before he fell ill?”
“His line of questioning at oral arguments indicated that his sympathies lay with GenWorks. Handicapping the other justices based on their questions and prior rulings, with Justice Wynn out of commission, there are rumors of a split court. In that case, the lower court ruling stands and President Stokes wins.”
Phoebe frowned into the camera. “And if, speculating only, Justice Wynn does not pull through?”
Dr. Greer gave a brief look of sadness, then offered her opinion in solemn tones: “Then President Stokes may have his decision upheld and an open seat to fill. Our prayers are with Justice Wynn and his family, but as macabre as it sounds, a vacancy dramatically improves the president’s stature and the importance of this year’s elections.”
“What if the Court simply fails to rule?” Phoebe asked.
“Then the case remains active. This merger would create instant billionaires among a number of GenWorks’ stockholders and employees. Nigel Cooper is accusing President Stokes of killing jobs in a bad economy, and his complaints are having an effect.”
“Have there been any updates on the justice’s condition?”
“Not to my knowledge, Phoebe,” Dr. Greer replied.
“Thanks, Christina.” Phoebe’s face filled the screen. “We’ll be watching the Court, the hospital, and the stock market closely as this saga continues to unfold. For more news on the implications of a delayed decision, let’s turn to our financial analyst, Harold Faub.”
Harold joined on the split screen. “Thanks, Phoebe.”
President Stokes hit the mute button, already aware of what Faub would say. If the Court chose to rule in favor of GenWorks, he would face another stunning loss heading into a dicey presidential contest. If the Court ruled against GenWorks, the White House had a major victory against genetic experimentation.
A victory for him, but the markets would rebel. Chaos would reign briefly, like it always did, until he found a way to prop up the market and forced Congress to help him.