Posted on 06/17/2010 2:02:24 AM PDT by jerry557
David Cameron has made an appeal on behalf of BP's British investors as it was forced to suspend dividend payments over its US oil spill.
The Prime Minister called for the company to be protected from excessive compensation claims as President Barack Obama made it agree to potentially unlimited damages.
BP provisionally agreed the biggest compensation payment in corporate history, setting up a fund worth at least £13.5 billion to cover the damage caused by its leaking oil pipe in the Gulf of Mexico.
But the US president last night made it clear that BP's payments could be just the start, warning that the company could still face lawsuits from individuals and American states.
On Wednesday, in his strongest show of support since the oil began leaking two months ago, Mr Cameron said the company should not be exposed to a string of future damages claims.
"BP is an important company," he said. "It is an important company for people's pensions, it employs thousands of people in the UK, it pays a lot of tax.
"It's important to try to give some level of clarity and certainty so that the company can actually continue and be financially stable," he said.
"They do need a level of certainty, and this is BP's worry, that there won't be claims entertained that are three or four times removed from the oil spill. This shouldn't be about going after BP for the sake of it."
BP shares have almost halved in value in the past two months as a result of the oil spill and the political storm that followed in the United States. It is one of the most widely held shares in Britain, and the fall has hit many pension funds and investors.
(Excerpt) Read more at telegraph.co.uk ...
The asshat has No authority to 'command' funds for his personal slush fund .. unless you give it to him!
Oh Wait .. You already did!
Dumb-asses
Anyone still believe Zer0 is moderating?
How did appeasing Zer0 work for ya!
The $20B going into this account is, unfortunately, the best way to deal with this problem. I am very much a small government person, at least on the domestic front, but there are some circumstances in which the government must take action. This fund is merely going to prop up businesses that are losing everything and can not afford to continue without immediate support. I have no doubt that some of the money will vanish, such are the problems of living in a large nation-state. This fund, however, will not be the end of compensation. BP will pay dearly in the court system (much of it coming in attorney’s fees).
On another note, this whole back and forth mess between us Americans and the British is complete nonsense. BP is no more a British company than Exxon is American. These are international giants, when a bite is taken out of them, the fat comes from the Americas, Europe, Asia... all over. I also despise this talk of the “pensioners” picking up the tab for BP. OF COURSE THEY ARE. That’s the way investment works. While these people may be several layers removed from the decision to invest in BP, they nevertheless have agreed to have their money tied to the fate of the company. Yes, I do feel badly for anyone who loses a significant portion of their retirement, but the stock market is, after all, gambling.
Perhaps the Dictator-in-chief threatened to put BP out of business completely. IRS audits, EPA licences etc.
Unconstitutional and fascistic, but that’s the guy you voted into office.
Not BP - you, the American people.
I wonder if you have considered the culpability of the US government in this matter?
President Obama had many opportunities to reduce or even prevent the oil from reaching shore and he chose each and every time to say NO. The government was lax in their regulatory responsibilities.
The government told BP to drill there if they wanted to drill the the Gulf, our government prevented them from drilling in less risky shallow water and on land. The government perceived that the risk (given the liability limit) justified the higher risk and danger.
There are other companies involved other than BP...where is their share?
By law, BP was only responsible for 75 million dollars...they volunteered early on to forego that. Personally, I think it is a mistake.
Our government has insulted horribly our dearest ally and if you bother to read the headlines in Britain you will see many that are saying BP Pensioners Being Forced To Pay Cleanup and such.
Our government has let all business know that when it can it will gut them...it has no regard for the good companies do this nation...it will gut them live when they have the opportunity.
Think about these things a little bit...
Since .. I am sure that you really didn't mean me in that statement .. I fixed it for you!?
I Knew what a Marxist/Muslim looked and acted like before going to the polls!
Another way for BHO to stick it to our allies !
Well it was BP’s CEO that said from the start that the company will “clean up every drop of oil.”
Some cost estimates are now creeping towards $30+ billion. This is going to set the company back for many years if they dont go under complerely.
Obama right now is looking to cover his own butt because he senses the political storm starting to rain on his poll numbers. So now he’s going to try to push blame on BP and hold the CEO to his word.
I ain't feeding the tit. Plus, the benefits are many: Disrupting British/Kenyan-American relations, getting the oldsters who rely on BP profits REALLY AGITATED, Starving The Monkeys who were drooling at the thought of a $20 billion payday.
This 20 billion slush fund will be used to benefit his affirmative action goals .....wait and see!
Also the Wednesday, 6/16/2010 Speech after the BP Meeting ...
I wonder how the Brits view the Magic Negro now?
You bring up a good point, it will be interesting to see what happens to the money...
Hey David - Obammy has already put us on the hook for a couple trillion...ya might want to re-think those political contributions you’ve been shoving his way. Sometimes you actually get what you wish for. ;o)
Indeed, I have considered the culpability of the federal government. They certainly deserve a large part of the blame for blocking drilling in shallow waters and in Alaska... And yes, the regulatory scheme could be improved. However, when we blame the federal government, we blame ourselves. Despite these failings, the fact remains that BP chose to engage in this business, despite the increased dangers of deep water drilling, and should be held liable for the damages that result from their actions. Now, if there is some other entity that is partially responsible, BP has recourse to mitigate their damages in court.
The 75M is a cap that is in effect only if there is no negligence or not a violation of the law. If BP had received advice from their lawyers that they would not be found to be at least negligent, they would not be so generous.
I do read the headlines, and the articles for that matter, coming from Britain. Yes, those who invested in BP are taking a hit. I don’t understand why that is unreasonable. If you invest in a company and they mess up, you share in their losses. (Unless, of course, you invest financial institution which “cannot fail”).
BP actions were approved by the government, so what negligence are you talking about specifically? Have they been charged?
BP had nothing to do with telling nations and businesses NO to their offers to remove the oil before it hit the shores, the government did.
BP had nothing to do with putting an ill advised six month moratorium on drilling...the government did.
You think the animosity that is being felt in Britain is limited to investors? Better really read the papers over there...here is one article that has a different story:
http://www.freerepublic.com/focus/f-news/2536758/posts
It is titled Barack Obama: the most unpopular man in Britain?
This has been totally mismanaged and is hurting America far beyond the oil spill which has been maximized for damage by our own government. Businesses will have to add risk factor (and not just oil industry businesses) when doing business in the US. I think even you can understand the harm that nationalization of business does with other companies who are considering doing business with the country to steals another companies assets. Well, we are stealing a companies assets without the highly inflammable tactic (but same results) of nationalization.
This is an important step in destroying America, wake up and smell the roses.
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