"New York state's pension fund plans to sue BP Plc to recover losses from the drop in the company's stock price following the worst oil spill in U.S. history, Comptroller Thomas DiNapoli said on Wednesday."
""BP misled investors about its safety procedures and its ability to respond to events like the ongoing oil spill and we're going to hold it accountable," said the comptroller, a Democrat, who stands for election in November."
Come on, DiNapoli - just say you're doing it as a political ploy to be re-elected, and we'll all understand. Now - let's not even bother to debate if the suit has merit - what is the point? As a commenter on Clusterstock put it:
"This is idiotic. How is BP going to make the stock holders full? By taking money out of its coffers? If so the stock price would fall further. Net effect would be zero change in the wealth of stockholders."
5 comments:
more tragedy of the common on BP kid (knowing this goes nowhere)? Pension fund gets X, stock goes down X, but Pension fund is %X so they benfit. they cost everyone equally on bogus legal fees to defend if it goes that far. In all fairness I'm reading Pauly and drunk as hell.
Keep your eye on the ball, Kiddo. Judgment creditors have priority over lowly shareholders in bankruptcy. Capisce?
:-)
-TZ
yeah yeah tz - but that just makes it so that everyone has to sue to stay "on pace". silly.
We'll see. But don't forget that creditors can do some interesting things in Chapter 11, like force the conversion of debt to an equity stake in the re-formed company, especially when somebody shows up with big cash. You can basically have a hostile takeover which can be pretty sweet for people net net who play their cards right. IMO the current BP Board and senior mgmt would be vulnerable. And guess how a lot of their compensation has been structured... Hee hee
TZ
Long BP plus the long GS option position. Are you a glutton for punishment or you're just looking for an excuse to go back to work....
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