* nola.com | BP’s Tony Hayward hands responsibility for oil spill cleanup to American spin-off
BP is to “hive off” its Gulf of Mexico oil spill operation to a separate in-house business to be run by an American in a bid to isolate the “toxic” side of the company and dilute some of the anti-British feeling aimed at Chief Executive Tony Hayward.
How convenient. As Greg puts it, “It’s not BPs responsibility any more ” and if the new ‘arm’ of the company goes bankrupt, well, that’s how business works.” Certain financial investments whose value has fallen significantly and for which there is no longer a functioning market but HQ is saddled with them and has to find a way to make them go away before investors ditch stock … what do we call those? Oh yes, Toxic Assets.
* The Demise of BP? I highly doubt it. A fraction of oil is captured after the installation of the LMRP cap and BP stock rises. How many of us stopped buying Exxon gasoline after ExxonValdez? Besides, it has been 25 years since the disaster in Bhopal and Union Carbide executives are just now being handed prison sentences. 25 years of death, suffering and pollution. Too little too late.
* Blair sent me this:
Unfortunately, this relief well, too, will hit snags, capture only a small percentage of the profits and not address long-term consequences.
Who else spun off financial burdens? Oh, yes; federalized GM.