Robert Reich: Why the US Can't Get BP to Do What's Necessary:

[amborin]

Why the United States Still Can’t Get BP to Do What’s Necessary

Saturday, June 12, 2010

Here’s what Coast Guard Rear Adm. James A. Watson wrote to BP’s chief operating officer on Friday:
“Recognizing the complexity of this challenge, every effort must be expended to speed up the process.” BP’s plans don’t “go far enough to mobilize redundant resources” in the event of an equipment failure or another problem. “BP must identify in the next 48 hours additional leak containment capacity that could be operationalized and expedited to avoid the continued discharge of oil.”
Translated: You’re dragging your heels and aren’t even using all the equipment you have, damn it. You better, or I’ll … I’ll … .

BP spokesman Jon Pack said the company received Watson’s letter and would respond to it as soon as possible.
Translated: Too bad. Have a nice weekend.

The Administration has not used legal authority to order BP to do a thing, because it hasn’t asserted any legal authority.

Meanwhile, the White House backed off its suggestion earlier in the week that it could stop BP from paying a giant dividend to its shareholders. That suggestion had caused BP shares to plummet and pressure to build on Britain’s new Prime Minister David Cameron. 12 percent of dividends paid to pensioners in the UK come from BP. Cameron and Obama had a friendly chat Saturday, assuring one another BP is important to both countries.
You see where all this is heading. At some point there’s likely to be a direct conflict. Like any big corporation, BP has legal duties to repay its creditors and to maximize the share prices of its stockholders. Its duties to the United States are still vague and unknown. The Oil Pollution Act of 1990 can be interpreted in various ways. So far, the Administration hasn’t tried.

Yet BP is still in control of what’s happening in Gulf to stop the worst environmental disaster in U.S. history.
BP still has lots of money. But the final cost of plugging the leak in the Gulf, containing the spill, cleaning up after it, and paying all damages – including lost wages to millions of workers whose jobs have been lost or will be if the spill keeps tourists away – could easily be tens of billions of dollars. And right now BP’s first responsibility is to its creditors and shareholders, not to the American public.
So if it’s UK pensioners versus American workers and property owners, who wins? More to the point, who’s going to decide? Most likely, a judge – or several judges, here and in the UK, through a mountain of litigation that will keep thousands of attorneys, solicitors, and barristers busy for decades.

In the meantime, months or even years could go by as Coast Guard admirals and rear admirals, as well as the White House, tells BP it needs to spend more to stop and clean up the mess it’s created, it’s going way too slow, and it’s not divulging what it knows. And BP shrugs and says it’s doing all it can.
I’ve got a better idea. Wouldn’t it be far simpler for the White House (stating that the Pollution Control Act of 1990 gives it authority) to put BP’s American operations into temporary receivership? That way, Obama can take over BP’s assets here and use its expertise to stop the leak and clean up the mess as soon as possible — and leave the subsequent years of bickering to the courts.


http://robertreich.org/post/691559649/why-the-united-states-still-cant-get-bp-to-do-whats

[Kurt Remarque]

1. yada yada

our bought-off government is tip-toeing around a goddam corporation

[PDJane]

2. Of course, the other thing that could be done.......

A judge did it in BC in a similar case recently....is drop the CEO, COO, and all the various president of the board types that he could get his hands on in jail. It's amazing how quickly fines are paid and finances cleared when you do that. Works well, and I happen to like it. Very tidy.

[Hawkowl]

5. Delta Force

I don't see why we can't dispatch some of our special ops people to apprehend the executives and put them in Guantanamo until they pony up the necessary funds and the oil volcano is plugged.

[LiberalEsto]

8. Absolutely!

The turds at the top belong behind bars. This might motivate their underlings to start moving their butts.

[neverforget]

3. Boss Petroleum is in charge and have shown they are incompetent

and incapable of handling this.

[snagglepuss]

4. Reich is right on the mark. And when this situation gets worse, Obama will wear it

and regret his passivity. Its unconscionable that the US has not taken control of the situation. It just staggers the mind.

[Octafish]

6. ''Translated: Too bad. Have a nice weekend.''

They certainly won't be expected to return phone calls after they go Chapter 11.

[JDPriestly]

7. Translated: Too bad. Have a nice weekend.

And, by the way, first thing Monday morning, we'll be leaking to the media our files on the deals that Tony Blair and Bush made prior to the Iraq War. Enjoy.

[Horse with no Name]

10. The Downing Street Memos have been out there for years

Problem is...no interest in the illegal dealings of republicans and their stooges.
I WISH someone would take notice of them. We can only dream of it happening though.:(

[grahamhgreen]

9. Lets hope it happens.

[lostnfound]

11. Are there any free trade agreements or wto rules etc preventing receivership?

Seems to me that some FTA's have clauses that preclude government actions to appropriate property of multinationals. Does anyone know if anything like that applies in this case?

While I'm personally upset that Obama hasn't abandoned Tony Hayward in a marsh in Southern Louisiana without a boat or a nickel or a companion to turn to, and I do wish he would have commandeered the world's skimmers weeks ago, I think he may be between a rock and a hard place when it comes to getting BP to 'pay for everything'. (As if that were even possible.)