In somewhat of a shocking revelation, the government, on June 23, sent letters to BP (NYSE:BP), Transocean (NYSE:RIG), Anadarko (NYSE:APC), Halliburton (NYSE:HAL) and Moex (Mitsui & Co.), saying they must provide information of any kind in relationship to depleting their assets to the U.S. government.
The government evidently doesn't want any deals done which could result in the companies not having the assets available to pay for any judgments which may be made against them.
Bloomberg News made a Freedom of Information Act request concerning the letters, where they said the U.S. government said they want to be sure they don't “deplete those assets that would be available to satisfy a judgment," in case of liability being found against them.
Some of events the government wants to be made aware of are acquisitions, disbursements, sales and restructuring.
While this may not be an official takeover like the banking industry, practically this is a takeover by the government of these major oil companies, as they're essentially forbidding them from making any type of major transaction and must evidently get permission from the U.S. government if they are thinking of doing it.
So the oil giants are going about their daily operations, but they are locked in time as far as making deals without the approval of the U.S. government.
This of course assumes these companies comply with the "request."
13 comments:
This is a wise move on the part of the gov't. and ultimately ensures that the companies who are truly judged to be responsible haven't spent their capital on deals at a time when they should be more focused on the matter at hand. That being said, it seems that this would be most relevant to BP & Halliburton, as Transocean's and Anadarko's lawyers built a case for their limited re$pon$ibility.
Anonymous- you make such a strong case, I just, I just, wow-well-put...
hey G.g do you even know the facts on this whole deal you idiot. Wise move on the part of the gov't????? are you f---ing kidding me? They don't do anything wise. This country is turning into NAZI Germany before our eyes.
"So the oil giants are going about their daily operations, but they are locked in time as far as making deals without the approval of the U.S. government."
Incorrect and total B.S.
Did Obama approve this?
http://www.bp.com/genericarticle.do?categoryId=9006615&contentId=7020658
Vitriol and no substance--what's the point of commenting if no one is going to tackle the substance of the comments. Do you think it's resonable to expect the Co.s involved to responsibly deal w/this mess w/o the gov't twisting their arms? Here's a 3rd shot and saying something other than the word "fuck," "bullshit," or "idiot"
Didn't Venezuela confiscate some major oil companies assets in their country?
Obama looks more and more like a commie to me.
Let BP fix the oil spill. But let them do it without these threats. I would think twice about investing in the US having heard this.
"Threats"--it's really more like project management. BP thus far hasn't really proven itself as corporately responsible in the Gulf or along the hundreds of miles of Alaskan pipeline laid to waste: http://www.themudflats.net/2010/06/15/documents-employees-reveal-bps-alaska-oilfield-plagued-by-major-safety-issues/
Predictor of bigger problem
This is not a takeover, but I believe an indication of what's coming. By instructing BP to inform them of asset depletion plans, the gov is essentially saying "we want to know any assets you plan to let go. We want to make sure you have capability to pay for liabilities coming your way, and you don't escape that responsibility".
In other words, what could be a better indication of the huge liabilities coming BP's way ?
in their dreams....The government has no power to enforce this whatsoever. In fact BP's reimbursement fund for victims is voluntary on BP's part...there is no legal standing for even making them do that. Egomania rules as usual...
Anonymous- I think you could be right about the foreshadowing of BP's future liability-load. Anyone know what models are used to calculate environmental devastation?
The power the gov't has to give BP incentives to buy it after breaking it is by limiting their ability to drill on US or US-influenced sites.
Fiction.
Why does the US Gov't keep treating a largely financial issue in such a political way every day they seem to think of a new idea to put to BP just to show the people that they are doing something. Let BP pay the damamges and be done with it nobody wins from their comments constantly chipping away at the BP share price and making it harder for them to pay any future liabilities. The environment impacts are not yet know but even when they are they will be weighed up in terms of $$$ there is no point in pretending this is anything more than a maths calculation.
http://commoditysurge.blogspot.com/2010/06/bp-nysebp-oil-spill-worse-because-of.html
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