Robert Reich: Why Obama Should Put BP Under Temporary Receivership

Wall Street Pit ^ | May 31, 2010 | Robert Reich

[maggief]

It’s time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP’s operations in the Gulf of Mexico until the gusher is stopped. This is the only way the public know what’s going on, be confident enough resources are being put to stopping the gusher, ensure BP’s strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the President is ultimately in charge.

If the government can take over giant global insurer AIG and the auto giant General Motors and replace their CEOs, in order to keep them financially solvent, it should be able to put BP’s north American operations into temporary receivership in order to stop one of the worst environmental disasters in U.S. history.

The Obama administration keeps saying BP is in charge because BP has the equipment and expertise necessary to do what’s necessary. But under temporary receivership, BP would continue to have the equipment and expertise. The only difference; Under temporary receivership, the firm would unambiguously be working in the public’s interest. As it is now, BP continues to be responsible primarily to its shareholders, not to the American public. As a result, the public continues to worry that a private for-profit corporation is responsible for stopping a public tragedy.

Five reasons for taking such action:

[wiggen]

Hes an idiot. I can’t begin to use the words that describe how much of an idiot.

[IrishCatholic]

bookmark

[Common Sense 101]

Uh, doesn’t the “B” in BP stand for British? Under what authority would the incompetent a$$ clown have to accomplish this? More importantly, the incompetent one is not likely to be interested in actually having the responsibility of addressing this calamity... he and his socialist pigs are much more comfortable pointing the finger of blame at BP and hastily calling news conferences to take credit for any successes, should they ever occur.

[alicewonders]

now it all makes sense.

sabotage the well and take over the company

My guts have been trying to put this all together, I knew something was seriously not right with this whole thing. You have hit the nail on the head - it's crystal clear. This oil spill is advantageous for Obama in so many ways - there's no way I'll ever believe it was accidental.

[wiggen]

And another thing. Receivership is bankruptcy. They can pay their bills. They will continue to pay their bills. The shareholders have already suffered for a mistake as have every other company involved. Put them into temporary receivership and watch the billions melt away.
Does he even understand the issues involved here? What an ignorant proposal.

[Oldpuppymax]

Incredible, but unfortunately, NOT unbelievable!

[RatRipper]

As a nation, under Zer0 and this radical leftist Congress, we are ALL under “double secrect probation” for government receivership . . . the commie Rats want to own us all.

[LS]

LOL. Why shouldn’t BP put the gubment under temporary receivership? BP is doing more to stop the leak than Bambi.

[azishot]

The only difference; Under temporary receivership, the firm would unambiguously be working in the public’s interest.

Yeah, right. Just like he's working in our best interest.

[M Kehoe]

So, Reich wants to nationalize the oil companies. Makes sense, 0bama nationalized parts of the car industry, financial services industry, the health care industry, and some banks. With control over the unions, 0bama could make it a trifecta.

Communism, coming to a country near you. [Over my dead body]

5.56mm

[longtermmemmory]

Reich used to / does teach law school. The man is unqualified to teach elementary school let alone law school.

[pugmama]

Why is Robert Riech speaking on behalf of Obama?
Is he on Obama’s short list or something?

Pretty funny comment!!

[deport]

Take over a non US company?.... He may could confiscate the assets within US controlled land but I doubt he could take over the company.

[maggief]

“now it all makes sense.

sabotage the well and take over the company”

Never let a ‘crisis’ go to waste.

[bitterohiogunclinger]

I say it’s time for Americans to put communist fascist butt heads under permanent lock and key.

[kabar]

2. We have no way to be sure BP is devoting enough resources to stopping the gusher. BP is now saying it has no immediate way to stop up the well until August, when a new “relief” well will reach the gushing well bore, enabling its engineers to install cement plugs. August? If government were in direct control of BP’s north American assets, it would be able to devote whatever of those assets are necessary to stopping up the well right away

BP started drilling two relief wells just a few weeks after the explosion. Reich knows squat about the oil industry. How will more assets speed up the drilling operation?

Here is an overview of what BP is doing. Although tghe video was made on May 24, it is obvious that BP has a short term and long term plan. As short term options fail, they launch into other ones. "Just plug that hole" is easier said than done. Reality seems to frustrate Reich who cannot accept the fact that this is a complex, difficult problem that will take time to resolve. Better to work on the clean up effort and understand that the relief wells are probably going to be the ultimate solution.

[wiggen]

They were worried about the shareholders making a ‘profit’.
The shares are down some 11 billion and this dividend is 1 billion. I don’t think profit means what he thinks it does.

[norraad]

What(the F)ever, could some creative/talented team please place a tightly endclamped riser over the riser that flowing oil so we can have cheap gas this summer so I can get on with my life?

It's not a big problem. no matter what any a$$hat propped up in front of a presstitute camera says.

[tioga]

never let a crisis go to waste is their motto.

[Flightdeck]

I don’t think this spill will be advantageous for Obama, politically. It may provide an excuse to pursue some horrid policies, but it will cost him even more voters.

Also, one cannot responsibly assume something like sabotage without any evidence. I believe it was an accident.