BP's liability...expanded information

[John Ranalletta]

Here

[Quinn]

Wonder how this will effect their bonuses. It hasn't effected the dividends.

 

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[skinny_tom (aka boney)]

I don't get it.

 

But here's something I do get;

According to Economist Magazine, BP's adjusters have yet to deny a single claim of the 31,100 they've received for financial loss in the region.

[John Ranalletta]

Wonder how this will effect their bonuses. It hasn't effected the dividends.

 

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"The message [on the dividend] was mixed -- not the strong affirmation the market was hoping for," says Raymond James analyst Pavel Molchanov. "Reading between the lines: pressure from Washington for a cut or suspension will be taken into account."

 

From a strictly financial standpoint, Molchanov believes the current dividend can me maintained, but with politics entering the picture, the calculation becomes a tougher one. He notes that the dividend is of particular importance in the UK, where approximately 12% of all FTSE 100 dividends come from BP ( BP - news - people ).

[John Ranalletta]

Canadian and UK pension funds are taking a real hit in NAV. If the dividends are cut or eliminated, stock up on tins of cat food .

[Shaman97]

I don't get it.

 

But here's something I do get;

According to Economist Magazine, BP's adjusters have yet to deny a single claim of the 31,100 they've received for financial loss in the region.

 

That doesn't mean they've actually processed all 31,000+ claims though, right? That'd be approaching 1,000 claims per day. Time will tell.

[steve.foote]

Latest tally shows that BP is spending $27 million a day on the related operations.

[Selden]

I don't get it.

 

But here's something I do get;

According to Economist Magazine, BP's adjusters have yet to deny a single claim of the 31,100 they've received for financial loss in the region.

"Deny" does not equal "pay in full." Reportedly, BP is cutting checks for $5000, which may be only 1 day's expenses for some businesses during peak season. Want more? Get in line.

[John Ranalletta]

One easy lesson in how to associate BP with "oil spill" for an eternity or however long google lasts.

[Ken H.]

There is growing speculation (speculation being the key word) that BP cannot survive.

 

In a MarketWatch article this morning on the possibility of bankruptcy was the first use, that I've seen, of the words we all (IMHO) know are coming (emphasis mine) - “...analysts at Tudor Pickering Holt indicated that talk had been escalating about a bankruptcy, but concluded that BP is worth more to the government and to investors if it keeps operating.”

 

Aka - ‘Too Big to Fail.’

 

I predict once again a handful of people will walk away with billions and the populous will get stuck royally. And this is the way a successful (capitalist or otherwise) society is supposed to work???

 

[John Ranalletta]

Must distinguish between BP plc and its US subsidiary. Likely, the US sub will tank, but not the parent. That's why they're carved up such.

 

BTW, there's speculation that AIG might be a counter party to some of BP debt. If so, you're right, the US taxpayer and de facto owners of AIG could be impacted in ways no one imagined.

[motoguy128]

I don't get it.

 

But here's something I do get;

According to Economist Magazine, BP's adjusters have yet to deny a single claim of the 31,100 they've received for financial loss in the region.

 

From what I've read, by default, they'll offer a 1 time lump sum of something like $5000. Otehrwise, you have to submitt the correct supporting docuemntation to prove your losses are real. It's a harsh does of reality for some. They include accounting rules that are typical in larger corporation like depreciation of assets ot show "real" gains and losses. So if your business shows a loss when depreciation is factored in, you may not get a pay out since your business is not profitable.

 

So depending on how you've done your accounting and how well you business is operated will affect you pay out. It also requires if you have good record keeping.

 

So someone wiht a cash only business might be SOL. Same with someone that has reported small profits or a smaller claimed income to avoid paying taxes.

 

 

I always get a kick out of thsoe that claim very small incomes to avoid paying taxes, then turn aroudn and complain that they can't get a home loan because they don't have enough proof of income. Sorry, sometimes you cant have your cake and eat it too.

 

Applicant: "but i can afford the monthly payments"... loan officer: "not according to your income that was reported to the IRS".

[motoguy128]

At least the insurance industry won't need a bail out. There's a collective sigh of relief I imagine. I read an article that said a few years ago BP decided it getting ripped off and was paying too much in insurance. So it decided to become self insured. There hasn't been a major oil spill of this size in the GOM I think it said by drilling company in 40+ years. So they decided it was pointless ot continue to pay such high insurance rates.

 

Hmmm... maybe your insurance rates were basd on inspections by the insurer or based on you record of accidents at other facilities and other documented safety violations. Hindsight being 50/50.. it seems that they were probably cutting you a good deal.

[Joe Frickin' Friday]

Same with someone that has reported small profits or a smaller claimed income to avoid paying taxes.

 

One of the complaints I heard is that BP is basing payouts on businesses' records going back for the past three years. As luck would have it, this happens to be three of the worst years in a long time for businesses in that area, thanks to Katrina AND to the recession; many local businesses can only report relatively modest profits for the past years, thereby justifying a comparably modest payout from BP.

[Ken H.]

And when you’re a fisherman, how do you calculate and be compensated for your future livelihood having been destroyed over no fault of your own?