Why hasn't this scenario been discussed re: Obama's $20B "Extortion"?

[Frustratedlady]

My take on Obama's insistence that the $20B be set aside in a trust fund, or whatever you want to call it, was to lock up the funds in the event BP decided to hand out dividends, bonuses or make their earnings evaporate into thin air in some off-shore bank account and file bankruptcy.

Imagine the hollering and prostration the Repugs would have gone through if THAT had happened!

I would think bankruptcy is still a possibility/probability.

[havocmom]

1. Corporations seem to re-invent themselves to avoid responsibliites all the time

And you are on to something re the way the GOP would howl if the 20 Billion were not in a cage and BP bosses got creative AGAIN

[BeFree]

2. Permit to destroy

BP bought a $20 billion permit to destroy.

BP is off the hook, Tony has his life back, Obama looks good - the heat is off, no big oiled beaches, only one dead whale, Cheney is lurking in the shadows, the GOP is squared away with BP, drilling will continue, profits will be maintained, and in a year, the propaganda will be: See, oil spills are no big deal, now can we drill off Florida?

Everything is being arranged very nicely. After 60 days, it's finally off the front page. Things are moving along as planned. We'll all get over it and move on

[dipsydoodle]

3. If you think BP's bankruptcy is still a possibility/probability

then I hope you're wrong. That would not provide the best solutiona as it would remove the necessary future profits to help clear the Gulf situation. I'd say it an unlikely event anyway.

[Scuba]

6. This is why they should be nationalized, or lacking that, in receivership.

[dipsydoodle]

7. To nationalise them

you have to buy plc. Not sure how that would down with the Russians and Chinese. A more likely event is that Petrochina would buy it lock , stock and barrel.

[MicaelS]

11. Do you think the UK would tolerate for one second

The US nationalizing one of THEIR biggest companies? Given that the UK is our "closest ally"? You do not do things like that to your closest ally.

Especially given the fact it has been stated on more than one occasion that many UK pension plans are invested in BP.

You think the people of the UK hated then US back when Bush was in power? That hatred would be nothing to what they would feel toward us if nationalization occurred.

[FBI_Un_Sub]

9. Whoever buys their assets

at pennies on the dollar would be stuck with that obligation, or, more precisely the "bankrupt estate" would have to pay.

[dipsydoodle]

10. Dream on

Wouldn't be quite like that unless maybe a third party bought everything which is an unlikely event.

The actual issue is share ownership i.e. ownership of the company.

[FBI_Un_Sub]

12. There are subtle differences between British and US bankruptcy law.

[dipsydoodle]

13. Not really

.

[lunatica]

4. Let's face it

It doesn't matter if Obama does one thing or the opposite of one thing. If he gave them everything just like Bush did they would scream just as loud and just as long. If he fired Biden and put Palin in as the VP they would complain about it just as bitterly.

The thing is I wish he and his Administration would get that fact into their heads and proceed without the GOBP.

[alfredo]

5. No, they would have said that our insistence they fix what

they broke killed BP and the jobs that went with them.

If they bring up the suffering pensioners in England, I'd remind them of their silence when Wall Street fucked us.

[EC]

8. Gee, in our state if you have no auto insurance and you

have an accident, you have to establish an escrow account to pay the damages...so how is this different?



The GOP can go ....themselves...

[Mimosa]

14. OF COURSE!

And every BP official who has been asked said there was no 'shakedown.'