Oil FAIL: $20 billion dollars is petty cash to BP
Under Wednesday's deal with the Obama administration, BP will suspend its dividend for the rest of 2010, freeing up $8 billion. The company also plans to raise $10 billion from selling some assets. Add cash lying around in bank accounts* and in short-term investments and BP could raise $25 billion without breaking much of a sweat.
What's more, BP is expected to generate $30 billion this year in operating cash flow, assuming oil prices don't fall.
And then there's the almost $6 billion we, the citizens, are paying BP in government contracts.
As Gonzalo Lira says at Yves place: The Oil FAIL and the Finance FAIL are The Same FAIL:
In a nutshell, in this era of corporate anarchy, corporations do not have to abide by any rules—none at all. Legal, moral, ethical, even financial rules are irrelevant. They have all been rescinded in the pursuit of profit—literally nothing else matters.
As a result, corporations currently exist in a state of almost pure anarchy—but an anarchy directly related to their size: The larger the corporation, the greater its absolute freedom to do and act as it pleases.
And the policy litmus test for the oil men is exact the same as for the banksters: CEOs in orange jumpsuits doing the perp walk, followed by their companies being broken up into smaller units that can be held accountable.
And if anybody believes that either legacy party can deliver that solution -- let alone a Democratic party that seems to confuse career "progressives" with the left -- then I have a very large bridge I would like to sell you.
NOTE * A few billion in cash "lying around"? Think BP's getting free checking on that?