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BP, Transocean Told To Alert US To Acts That Deplete Assets
From Bloomberg:
The U.S. Justice Department told BP Plc, Transocean Ltd. and three other companies associated with the Gulf of Mexico oil spill to provide the government with advance notice of corporate actions that may deplete assets that could cover judgments against them.
The letters, dated June 23 and provided to Bloomberg News in response to a Freedom of Information Act request, also went to Anadarko Petroleum Corp., Halliburton Co. and Moex USA Corp., and described “significant” potential liability for each of the companies.
Each of the letters said the U.S. has a “compelling interest” to ensure the companies don’t “deplete those assets that would be available to satisfy a judgment” should they be found liable to the U.S.
Attorney General Eric Holder has said the American people won’t pay for cleanup costs and that the government will take the steps needed to ensure those responsible cover the costs.
The letters ask for notice of events including disbursements, sales, restructuring and acquisitions.
London-based BP is the operator of the well pouring crude oil into the Gulf of Mexico; Anadarko, based in Woodlands, Texas, owns 25 percent of the well. Transocean, based in Geneva, owned the Deepwater Horizon rig that exploded in an accident that killed 11 workers and sent oil gushing. Halliburton, based in Houston, provided drilling services. Mitsui & Co., based in Tokyo, owns a majority stake in Moex, which holds a 10 percent stake in the well.
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Not even sure what to say, I guess this means that BP and RIG are planning some kind of shennanigans. Well, don't forget bp, the feds are the ultimate hustlers. Don't fuck with us.
Somebody had better call the US and tell them that 70+ days of unrelenting crude oil release into the GOM may deplete the assets of BP and Transocean!
What about the royalties they have to pay the U.S. for the oil? Sounds like those are our assets floating around. Will America be putting in a claim?
BP's american division will belong to the federal government when this is said and done with. When Chavez said that Obama was to his left, he wasn't screwing around.
I appreciate being short and to the point and all - but a BIT more information would be great!
I think it means sell assets for cash outlays.
I don't get it
Assets are key leading up to and declaring bankruptcy....get it now? If BP doesn't get bailed out, and it really really isn't looking good for them given Obama's icey reaction, they are looking to go bust. The cleanup effort is incredibly pricey, and hurricane season hasn't even begun yet. The 'canes/tropical storms are putting holds on their relief "efforts." Assets will be key when it comes time to turn to chapter 11 in Keyne's book of Magic and Fantasy.
Yes I do. Appreciate it
BP is toast. Everyday the oil news gets worse. They are paying people and still lawsuits are being filed. I bet we see a bankruptcy within 6 months.
Rick: How can you close me up? On what grounds?
Captain Renault: I'm shocked, shocked to find that gambling is going on in here!
[a croupier hands Renault a pile of money]
Croupier: Your winnings, sir.
Captain Renault: [sotto voce] Oh, thank you very much.
[aloud]
Captain Renault: Everybody out at once!
makes me more impressed with Hal's move to the mid east..they knew they knew.
bp and rig catch them if you can but the big fish can stay off shore.
TD them new servers are great, thanks for the upgrades.
And by Acts you mean other than perpetually dropping the ball?
Bullish. Totally.
We ramp up at the close today.
< /cnbc >
Sign these papers, swine. Now we can throw the whole legal system out.
Someone musta got word that BP is about to "segment & shelter" itself.
How hard would it be to move assets off stage, go BK with nothing much to liquidate, stiff all creditors, leave a shell company with a few lawyers to distract greiving US citizens for 30 years, then start a new oil major from the sheltered assets? It's not something you would do if you had a choice ... but what if you didn't?
BK is their way out of this, all of this, including liability for the gulf coast states. They must be very creatively looking at ways to nuke this entire thing right off their list of things they have to care about.
And Obama didn't get his $20B, nor even the first $5B installment, and never will but the empty shell BP will have all the protections a corporation enjoys in BK. How sweet is that to the guys at BP?
Two words: "fraudulent conveyance," at least in the US.
I don't know how this applies to foreign corporations.
Never asked if it was legal. Asked how hard would it be.
The Obama administration is sheltering corporatations from the DoJ. Huge play going on there with anything TBTF. BP is likely already asking "how much of a donation would it take to keep Justice off our case if we bug out?"
Yes I know, that constitutes bribery. Look ... it's a rabbit hole, it goes way down, lots of crazy shit going on. How hard would it be? Why won't they do this? Who can stop them?
And isn't that the point. We all need to take a step back and survey what's been done so far that would lead us to believe that both BP and the US Gvtwill "play fair" with the people.
It's an indication of our tendency to engage in false hope seeking and our willingness to continue to believe in "The American Dream" that we don't recognize that the USA turned the corner towards that of a very efficient (for the heads of the corporate state) banana republic a decade ago. The transition is simply more visible to anyone who wishes to look.
All that BP needs to do is reposition itself as a bank and the law does not apply at all:
http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-c...
That's just brutal. This is intimidation by the .gov, nothing less, nothing more. Complete and total thuggery.
The U.S. Justice Department told BP Plc, Transocean Ltd. and three other companies associated with the Gulf of Mexico oil spill to provide the government with advance notice of corporate actions that may deplete assets that could cover judgments against them.
The letters, dated June 23 and provided to Bloomberg News in response to a Freedom of Information Act request, also went to Anadarko Petroleum Corp., Halliburton Co. and Moex USA Corp., and described “significant” potential liability for each of the companies.
http://www.bloomberg.com/news/2010-06-29/bp-transocean-told-to-alert-u-s...
All companies implicated are definitely shifting around assets. They'll most likely assign the blame to one or two fall guys come the Congressional hearings. Huge corporations such as BP, and those with tight gov. contracts like Halliburton aren't afriad of a little hawkish jabber from the impotent DoJ.
Sure.....why not? Since the POTUS can unilaterally demand 20 billion dollars from a private company.....what the hell, why not include Trans-Ocean? For that matter, why not demand the same from Halliburton and Schlumberger? How about the company that stocks the coke machine? Hell......why not demand to see how I am spending my money?
Oh.....thats right......the financial overhaul gives them that right......my bad.
CNBC said it is priced in ;-)
Look at the big picture
and 5Yrs ahead
think of who these assets may belong later on
think of XOM, CVX and COP
and how their value will be differently priced
We Found THE Loophole! We Found the Loophole! Stupid Yanks!
Maybe that is why all those ships are in the mid east gulf. The US is going to seize assets of Halliburton. Any word if Blackwater is moving to Halliburton in the gulf region?
The Loophole are the bitches in Congress...hey, that's the asshole too.
Ha, the USA is but a hop, skip, and jump from Venezuela at this point. Lets nationalize 'em boys. Take their assets.
Moratorium Won’t Stop Unprecedented BP Project in the Arctic
http://exiledonline.com/cat/what-you-should-know/page/2/
What a way to take out a Country. Just destroy all the oil fields and then file bankruptcy.
http://www3.valueline.com/vlquotes/quote_news.aspx?symbol=BP&viewoption=...
Bp Plc (BP)
2010-06-29@12:23:04 ETBP Plc Makes First Payment of $71B for Gulf Spill(BP) (PSM)
BP Plc (NYSE:BP) paid $71 billion in bills stemming from the Gulf of Mexico oil spill, meeting the July 1st payment deadline, reports the Associated Press (AP).
AP reported that another $51.4 million bill is currently being prepared by the Obama administration for BP, as well.
Shares of BP are trading up 2.96% mid-Tuesday afternoon at $27.85.
Write to Chip Brian at cbrian@tradethetrend.com
Does this include campaign contributions that deplete their assets?
Regardless of where you stand on the GOM disaster, the bigger disaster is big government extorting money out of businesses, and we're all fools if we think that any company that crosses their power grab couldn't be in the crosshairs. "Next!"
When they needed someone to step up to the plate and extort a cleanup fund, why is it that the government is the entity doing it? Is this not the same taxpayer-funded entity that can't even keep a guy who strapped TNT to his shorts off an airliner? Isn't this the same government that only a year or two ago, was "in bed" with big oil? And this administration isn't? How much did the democans get off of oil companies, and how much are they still getting?
This is merely one big incestuous group hug, and our freedoms will be the ultimate loser.
Sometimes I just don't get posters on here.
Posters complain when the USG handles TBTF (ie, banks) with a soft touch, posters are now complaining that the USG is playing rough with BP.
Why do you think BP hired Blackstone, so they can figure out how to pay the maximum to clean up and settle this mess? Grow up FFS, if the relief well operation doesn't have any success by the end of August, BP is toast. The USG wants to make sure that BP US assets don't magically disappear into "other" BP legal entities leaving a carcass of a company behind to be dissolved. The only decent announcement that has ever come out of the AG office and you guys are trashing it.
They purchased Skull and Bones political power and that is all. They purchased, similar to when they hired GS, "protection" money from shorts. They hired a GS to prevent "conflicted interests" when they let them view their books from shorting them into oblivion. Nothing short of a shakedown. They hired stock defenders.
And the only way this country and financial institutions which are merely USG arms of power can stave off death is by making their living in a coordinated fashion squeezing shorts. Remove all speculators, remove risk and fool everyone into believing every political and media tool will be utilized to recapitalize the markets and assets on the backs of short sellers or the "Wolfpack" or also known as the opposing force in natural markets.
They are essentially fixing horse races. If you bet against us you will lose. I take the opposing view and I know that these retards are too incompetent to ever pull of a scheme of this magnitude. Why? Because they have always and will always fail.
John, they hired Blackstone to advise them on restructuring, plain and simple. They know the extend of the horror story behind this leak, they know they are headed to bankruptcy and they will try to salvage what they can.
Why must everything be a conspiracy?
Ok Taraxias.
Do not confuse me with the conspiratorial type however I hope we can agree that their are forces working in collusion against the middle class. I am simply stating that BP likely has Lehman in their minds and in order to prevent those who could naked short their company into non existence the most logical solution would be to hire them as protection. The oil volcano is an economy killer and it alone assures a double dip however if deluded BP is trying to live in lala land where they believe their liability will not exceed their market cap then hiring GS would be a very strategical move if anything to give GS a moment of pause if they believed GS was salivating at racking up the profits shorting them to death. Let me go on the record in stating that I believe in black helicopters and that they are not as common as many believe and that sometimes conspiracies are certainly not only a possibility but a likelihood and this past year witnessing the Fed & WH should all but assure us of this collusion. As far as common conspiracy theories and my opinions:
- 9/11 was not a inside job. Has anyone not seen how protectionary this governmet is over Wall Street and the ponzi. To even think they would cause an event that could give the Dow a 50% haircut is lunacy. We were attacked because of our imperialist motives.
- JFK was assasinated in collusin with the FBI, Carlos Marcello and angered CIA officials concerned about his intentions of not abiding with the hierarchy because he unlike most politicians was not reliant upon the corporate funding. He was the wealthiest President to ever sit in the Oval.
- RFK was killed for the sole reason that it was less hampersome to assassinate a candidate than an actual President. They were not going to risk allowing a former AG to become President of the U.S. who was holding the largest of all grudges toward the corporate complex
- The 2008 Meltdown was engineered to cause LEH & AIG to go BK in order to induce CDS payment.
- The March lows were engineered to force the government to pay 100% of the liability on those obligations by feigning systemic risk
- President Obama was well aware of the coming meltup because he authorized the Federal Reserve to elevate the markets hence his, "Stocks are real cheap" quote 2 days prior to the largest short squeeze ramp job with Federal Money in history and that is why today the White House can always be counted on to do what is ever in the favor of Wall Street because they are all complicit since they fooled him into believing that if the markets went up so would the economy. He is no in so deep that is entirely too late to backtrack.
Everything is not a conspiracy however when unlikely seemingly perfect events lineup to benefit the wealthy and harm the middle class I do not concur with coincidence.Everything sounds pretty tight except your stance on "9/11." Much more was "accomplished" via 9/11 than a dive in equities. Think Patriot Act(s), Iraq 2, Afghanistan, (hopefully not Iran), etc. EVERYTHING is a conspiracy when governments are involved, that much I think is clear.
They want advance notice of asset sale so countries like China will not step in and buy our last remaining resources . Since almost every other country has nationalized oil reserves. Just like when China was high bidder for Unocal and Congress said no way what do you guys think this is a free market or something?
They want to make sure that before they go to bankruptcy, that the govt. will put claim or essentially freeze their accounts and assets in order to be the first to get their money.
An interesting, depressing, shockingly candid account of the many ways BP will (not may or could, but will) wriggle out of this: BP has options before bankruptcy, lawyers say
Certainly a lot of details like that to take into consideration. Thanks windows vps | cheap vps | cheap hosting | forex vps