Carpe BP? – That seems to be a theme heard all across the MSM when it comes to what should be done with British Petroleum.
Former Labor Secretary Robert Reich has called for the temporary takeover of the oil giant – at least until we have the situation under control. Could you have a vaguer timeline, Mr. Reich? “Under control” means a lot of things to a lot of people. Some folks in Alaska believe that the 1989 Exxon Valdez spill in Prince William Sound is not yet under control.
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And then we have the great global wisdom of satellite radio star Rosie O’Donnell who told her audience that she didn’t care if you “call it socialism, call it communism, call it anything you want” but she wanted BP’s assets seized by the government:
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Followed by the rumblings from Congress: some members of the House and Senate are quite vocal about their feelings on BP and its dividend payments to shareholders. Senators Charles E. Schumer and Ron Wyden sent a letter with their thoughts to BP’s CEO.
We find it unfathomable that BP would pay out a dividend to shareholders before the total cost of BP’s oil spill clean-up is estimated.
While we understand the need to reassure shareholders that the disaster in the Gulf will not substantially impact BP’s long term financial health, we are concerned that such action to move money off of the company’s books and into investors pockets will make it much more difficult to repay the U.S. government and American communities that are working around the clock to stem the damage caused by this devastating oil spill.
The latest count has more than 40 elected officials (all Democrats) supporting a dividend suspension or at least a cut. On Fox News, host Neil Cavuto attempted to discuss the logic of forcing BP to cut the dividend with one such supporter, Vermont Congressman Peter Welch.
I find it odd that the Congressman can grasp the concept of “unfunded liabilities” when it comes to BP and yet turn a blind eye to the same idea when it comes to the American economy and our multi-trillion dollar unfunded liabilities.
Cavuto explained that forcing BP over the financial cliff would only put the clean-up bill on American taxpayers. Additionally despite Mr. Cavuto’s sincere efforts to explain to the Congressman that demanding such cuts would not only endanger BP’s ability to pay for the clean up, but would also put a stake into the heart of teachers and municipal unions pension funds who own large chunks of BP stock.
According to a posting on the website democraticunderground.com;
Shareholding in the USA and UK are almost identical @ c. 40% each. In the case of the USA JP Morgan Chase hold 27% of BP’s entire stock. The great majority of BP shares worldwide are held in pension funds of some description. So its not just the retirement of UK’s it will hurt those in the USA equally.
Someone needs to explain the theory of unintended consequences to all those screaming that we should seize BP and their assets or that we must force BP to cut its dividend. Take over BP and the American taxpayer will ultimately pay the bill — something the media doesn’t bother to tell you.
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