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The UK Fights Back & Some Reactions From The Web

11 June 2010 No Comment

Concerned over the American politicians beating up on BP over the Gulf oil disaster, some British folks are speaking out as BP loses billions in market value (and impacts British pension funds in a terrible way).

In the most outspoken statement yet, John Napier, Chairman of the RSA Insurance company (insures BP), said:

There is no doubt that BP, as a UK PLC, is totally committed to do everything possible to contain the oil leak and meet all its obligations in the USA.

There is a sense here that these attacks are being made because BP is British.If you compare the damage inflicted on the economies of the western world by polluted securities from the irresponsible, unchecked greed and avarice of leading USA international banks, there has not been the same personalised response in or from countries beyond the US.

Perhaps a case of double standards?

Read more details here.

Now, some great comments from web readers on this topic from Zero Hedge (best comments on the web):

First, one who complete agrees with the above quote:

Thanks so much Mr. Napier – about time someone told Barack to shut his big f****** trap.  Sick and tired of his pandering to populism – how about the U.S. President starts acting like a real leader and try to restore order to some of this chaos?  And btw, where’s the change?

By the time this guy’s done with the presidency, gold should be at least $2500/oz and we’ll still be balls-deep in the great recession.


Second, one who basically says both countries are screwed in this situation:

Let’s put it real simple.  The USA, a country with unsustainable debt, deficits, and social welfare demands, is in serious economic trouble.  The USA has just suffered enormous and incalculable ecological and economic damage at the hands of BP, a company that used to be called British and still has very strong UK ties, and which has perhaps the worst environmental and accident record of any of the major western oil companies.

Then, on the other hand, we have the UK, a country with unsustainable debt, deficits, and social welfare demands, which is also in serious economic trouble.  The UK’s shaky pensions are extremely dependent on dividend payments from BP, that enormous oil company that would have done less damage if it had just nuked a medium sized US city.  If BP stops dividend payments, UK pensions start looking really shaky, really fast.  If BP continues dividend payments, the US will probably find a way to stop them, whether by involuntary Chapter 11 or otherwise.

It’s simple folks, both countries were already in bad shape, and a disaster caused by a private corporation is creating severe harm to one of those countries, but asking that corporation to pay for the harm and set aside funds for future payments will cause immediate financial harm to the other country.

It’s fun.  This could be our Archduke Ferdinand moment for the 2nd/3rd stage of the financial crisis.

And, lastly, a comment who tells the Brit quoted above to basically shut up.

I don’t know what the Prez said specifically, but Mr. Napier and BP need to get throught their heads that the oil spill is no small deal.

It’s threatening the economy of multiple US states for many years.  Collectively, I’d wager the effected states have a larger GDP than the UK.

If this event is threatening BP and hurting its stock, that isn’t some great injusticed invented by the President.  It’s pretty much deserved.  Now quit bitching and plug the damn thing.

Happy Friday everyone!

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