Jamesb101.com

commentary on Politics and a little bit of everything else

BP begins to bled capital…..Investors grow cautious…….

This piece from Washington Post points to loss of investor confidence…and the myriad of legal challenges faced by the company…..

Federal environmental fines,  A Federal Criminal investigation, OSHA Investigation,  State Investigations, Civil Suits, and investors worried about all of this have joined to drive the company’s stock down……

I’m sure the company has plenty of money….

You know they have other wells all over the planet pumping along…..

But the cuts of  million can put a company out of business…..

And most of the employee’s working for BP in the Gulf live in the Gulf states …..and pay taxes…just like BP does……..

And it’s gonna take a while to get this job done…..

BP, the world’s fourth-largest company before the April 20 blowout on the Deepwater Horizon drilling rig, has lost a staggering $74.4 billion, or 40 percent, of its market value in six weeks.

Although investment analysts say the company has pockets deep enough to pay for mounting claims and cleanup costs, the political outcry for making BP pay has added to the uncertainty surrounding its future, especially while oil is still leaking into the Gulf of Mexico.

President Obama vowed a “full and vigorous accounting” of the causes of the oil spill disaster in the gulf, telling the leaders of a new commission that they should pursue the trail of blame without limits.

Calls for punishing BP intensified. Sierra Club Executive Director Michael Brune said: “BP should pay. Not just for the cleanup, but for the lives lost and the natural treasures destroyed.” And on the Web site Talking Points Memo, former labor secretary Robert Reich urged Obama to put BP’s American operations into temporary receivership.

Meanwhile, BP had begun yet another effort to deal with the spill, using a giant lobster-claw-like slicer to cut off the old damaged pipe that has been twisted on the seafloor. A saw then worked on the remaining section of the blowout preventer to make it easier to get a tight fit later this week if BP can successfully lower a new apparatus on top to funnel oil and gas to the surface.

But the national incident commander, Coast Guard Adm. Thad Allen, did little to raise hopes of a quick end to the crisis, saying “We’ve got to keep our heads in the game; we’ve got to keep our shoulders to the wheel.”

More……..

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June 1, 2010 - Posted by | Blogs, Breaking News, Counterpoints, Crime, Government, Law, Media, Men, PoliticalDog Calls, Politics, Updates, Weather |

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