23. Marrying the Devil in Texas

Capitalism: Success, Crisis and Reform (PLSC 270)

Professor Rae discusses the case TXU v. EDF, about an electric company private equity deal that involves environmental interest groups. Professor Rae structures the discussion by contrasting the deal as viewed from the perspective of Austin, TX and Washington DC. Actors in both locations prioritize different aspects of the deal differently. The case highlights the importance of the "customer voter base," and the role of public opinion toward both companies and their associated politicians. Professor Rae highlights how private companies can ally themselves with environmental groups to achieve mutually beneficial goals.

00:00 - Chapter 1. Introduction: Goldman Sachs Discussion and Class Agenda
07:58 - Chapter 2. Case Discussion: Marrying the Devil in Texas
11:58 - Chapter 3. Marrying the Devil in Texas: TXU Expansion
16:49 - Chapter 4. Marrying the Devil in Texas: View from Austin I
20:23 - Chapter 5. Video: TXU Gets You Hacking Merrill Does the Backing
22:49 - Chapter 6. Marrying the Devil in Texas: View from Austin II
25:40 - Chapter 7. Marrying the Devil in Texas: View from K Street
27:05 - Chapter 8. Marrying the Devil in Texas: View from Wall Street
30:43 - Chapter 9. Marrying the Devil in Texas: Two Worlds of Strategic Rationality

Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses

This course was recorded in Fall 2009.