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  • Morning Bell: An Offer BP Couldn't Refuse

    On October 13, 2008, Treasury Secretary Henry Paulson summoned the CEOs of the nation’s largest banks into a gilded conference room at the Treasury Department just a stone’s throw away from the White House. Each CEO was then handed a one-page document that said their company would agree to sell hundreds of billions worth of equity to the federal government through the Troubled Asset Relief Program (TARP). “We plan to announce the program tomorrow – and that your nine firms will be the initial participants.” In case anyone missed the subtle message, Paulson added, “We don’t believe it is tenable to opt out, because doing so would leave you vulnerable and exposed.” Sure enough, just like a certain fictional band land leader once did, all nine CEOs signed their respective contracts.

    Yesterday, history repeated itself. This time it was the executives of BP who were summoned directly to the White House to have a little chat with the President and Attorney General Eric Holder (who has threatened BP with criminal prosecution). The exact conversation may never be known, and by the end of their “no-nonsense business meeting” BP emerged from the Roosevelt Room to announce that they would “voluntarily” place $20 billion into an escrow account to begin covering claims associated with the Deepwater Horizon oil disaster and contribute another $100 million to a foundation that will support oil workers made unemployed by President Barack Obama’s indefinite ban on offshore oil drilling.

    Don’t buy for a second any of the mainstream media’s line about this being good for BP. The White House made clear yesterday that the $20 billion was just a down payment and in no way represented a cap on BP’s liability. In fact, the President explicitly said that the fund would not preclude individuals or states from pressing claims in court, and that it would remain separate from BP’s liability for the damages to the environment. And these damages may include the costs of cleanup for damage far beyond what BP caused. The Washington Post today reports that a gulf restoration plan of the sort promised by President Obama could cost as much as $30 billion. That’s $50 billion in damages so far. And that does not include any future money, on top of the existing $100 million donation, the White House may press BP to pay to cover the unemployment caused by President Obama’s offshore drilling ban.

    Yes, BP did get the White House to say they do not want to see BP driven into bankruptcy. But who does that promise really serve? Clinton administration Deputy Attorney General turned BP lawyer Jamie Gorelick explains: “We know what it looks like when a company is driven into bankruptcy. The claims that come first are the creditors, then the employees, then the environmental claims, and then the likes of shrimpers. This would not be a good result for anyone.” Now look at how the deal between the White House and BP is structured. BP is not handing over a $20 billion novelty check tomorrow. Instead they are set to pay $3 billion in the third quarter of this year, $2 billion in the fourth, and then $1.25 billion per quarter thereafter. In the meantime, BP has identified $20 billion worth of assets in the United States that the federal government now has a lien on. In the event of a bankruptcy, guess who gets to jump in line and have their claims honored first? Still guessing? Then ask Chrysler’s secured creditors.

    Yesterday’s “voluntary” deal between BP and the Obama administration was nothing less than a continuation of President Barack Obama’s ongoing assault on the rule of law. Capitalism only succeeds if it is a profit and LOSS system. Well-managed firms should have every right to keep their profits, but mismanaged firms must be allowed to suffer losses. By all accounts of what transpired on the Deepwater Horizon, BP is a terribly mismanaged firm. If the damage they caused is great enough, they should be allowed to fail. Failure is a necessary component of capitalism. But this administration refuses to allow the rule of law to work. From Fannie Mae to Freddie Mac, from GM to Chrysler, from AIG to Citibank, our government continues to subvert the established rule of law. This lawlessness creates uncertainty in the business environment, and it is a huge reason why our economy is not recovering as it should be.

    Last night on CNN former Clinton Administration message man James Carville said: “It looks as if President Obama applied a little old-school Chicago persuasion to the oil executives.” Making “offers you can’t refuse” may be a great way to run the mob, but it is no way to run a country.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    92 Responses to Morning Bell: An Offer BP Couldn't Refuse

    1. Tressa, NV says:

      still all BS, all the dead animals to come, the devastation, and the the BS just to get what they are promising, a little slow, late, and not enough, by all parties our PRESIDENT and B P OIL, real sad

    2. James A - Longdrycre says:

      Gangster governent from Paulson to Holder to Obama. This is NOT America, but some mafia enclave in Sicily or Italy.

      We need to flush the political and money mafia. There is not place in honest government for a Paulson, a Holder, an Obama.

      Othewise, the Republic dies. But, of course, the Democrats in Congress stand and applaud because no senator, no representative has to register a vote.

      They are merely bystanders, as we, in the public, are forced to be.

      If we elect bystanders and pay them way beyond their value to the Republic, it is time to elect MCs and Senators of integrity and honor and honesty.

      We are short of those today.

    3. Dawn Owens, Braselto says:

      Can someone please educate the American public on the

      "Davis-Bacon" Act.

      We are a small business working as a subcontractor for commercial kitchen equipment – primarily county school systems.

      More & more with the stimulus monies going out to various facilities, the Davis-Bacon Act is being applied to the bid.

      From what I understand from the Dept. of Labor – this act was written around the 1950's to keep out of state bidders from coming to other areas to get cheap labor, therefore basically you have to use their pay scale (union wages??) on the project that you are bidding on.

      I don't understand (our government is broke, many, many, people would love to work at a reasonable rate – cheaper than the Davis Bacon wages I'm sure…but now the government is causing the projects to cost more that they have to.)

      I would love for the American public to know this. We could have alot of projects done for alot less money.

      It is causing us not to bid — not because of the labor rates, but because of all of the government paperwork involved. (Certified payrolls, etc. with every pay application made and special accounting programs that just make it ridiculous)


      Dawn Owens

    4. Jeanne Stotler, Wood says:

      Another slight of hand by the Obama administration. BP does NOT have this money on their books. BHO knows he is in the toilet and is trying to use smoke and mirrors to cover up his failure to lead. He(BHO) doesn't even make sense, he's ruining all kinds of businesses on the gulf, he puts a moratorium on drilling? How are these people going to survive? I have family in Ft. Myers, Fl. and I have seen the shrimp boats go out and come in, Rest. in the area are know for local seafood, tour boats are also a big business as well as the beaches up and down the west coast of Fl. this is just one state, Texas, Miss. Ala and La all have similiar problems this is 1/10th of our country and IT affects us all. It's time to stop playing politics and pointing blame and START correcting the problem, lets bring in those from across the ocean who have battled this problem, it's time for actions not hearings and idle talk.

    5. Jolene Atkins - Dall says:

      First of all, what happened to "Innocent until proven guilty"? The president must have been extremely happy that he could villify, twist arms, belittle, etc. His handling of this situation has been terrible. But, he had one of the oil corporations (BP) to vent his hate on. It is a sad day in America to see how these matters are being handled.

      He should have gathered a team of experts (I do not mean his Chicago people) come in immediately after the disaster. He should have waived the Jones Act as well as the EPA, and accepted the help from foreign countries when it was offered. He should have let the people of the Gulf Coast install sand berms, and do the things they know to do to correct the situation. Because of his lack of experience and action, the situation along the Gulf coastal states is much worse than it might have been.

    6. Mary.... WI says:

      I agree that Fannie, Freddie, AIG, Chrysler, Citibank should all have been left to fail. And though I feel BP should compensate all that have been impacted by this oil spill including wildlife/environment rehab, find out what happened, accept help from foreign countries, and most of all continue working on a way to cap this well gone wild.

      I do however, question whether Obama has the right to demand BP place money in an escarow account for a third party to determine/distribute to all with valid claims. Shutting down oil companies for the next 6 months is foolish and will most definitely hit us taxpayers once again in the pocketbook. What is he thinking!?!

      Obama is so out office as president of the USA in 2012…..that is IF there is anything or anyone left to vote. Even I have more business sense than he does and I work in a dental office as the office manager!

    7. John Hayward, Jubile says:

      Yet more reasons why limited liability reform is long overdue…

    8. DenofYork York, PA says:

      I am really starting to like the way James Carville has come around to a more centrist view and is critical of the so-called "messiah". It is about time someone from the left started to speak-out!

      This guy (POTUS) is clearly over his head, his administration is as bad for this country as the oil-leak is for the environment… Both will have devastatingly negative effects for years to come!

    9. Pete Kleff, Cypress, says:

      Frankly I am disappointed in BP execs. I had hoped that because it was a Brit company, they would stand up to intimidation from the White House. But like American execs, they failed to do so. Intimidation by this pseudo-tyrant will work only so long as these execs kowtow. Unfortunately, BP execs, as so many of their American counterparts, are not capitalists. Their underlying approach is fundamentally fascist. As with their predecessors in Germany in the 1930a, they apparently believe they can ultimately control the tyrant while holding on to their wealth by giving in to "some" government control. It did not work then, and it will not work now. Corporate responsibility does not equate to abandonment of corporate governance. Must we relearn this lesson of history?

    10. Gary Alaska/Nevada says:

      Does the Obama administration remind anyone else of the Batman movie where the "penquin" was driving the Batmobile?

      Of course for anyone familiar with the philosophy of Alinsky, the creation of chaos on as many fronts simultaneously, is the way to overthrow a free society, by shocking confusion. People will be stunned into inaction, by massive "change!" And be easily led. Wave goodbye to your freedom and prosperity.

    11. John, Houston says:

      Most Americans can see that BP and the Obama administration have made a deal that only benefits themselves – Obama gets more power and BP gets to survive a little longer as a company. Who will ultimately pay for the damages caused by a grossly mismanaged company and a detached president taking advantage of a crisis? We will — if Obama has his way.

    12. Laura K, Pennsylvani says:

      This is madness. It is incredible. I am really upset by the fact that there are Americans who are blinded to the fact that this little man is running his administrations as a "back door" deal. However, the gutless CEOs that succumb to "this type of deal" are equally to blame. What a disgrace!

    13. MN J says:

      I'd heard how bad the pressure on the banks was but had not realized, until you succinctly explained it, just how awful it was.

      Wonder if the O administration thinks it can strongarm and bully the leaders of Iran, Venezuela, Brazil, Turkey, Saudi Arabia, etc. Unfortunately, O may succeed here but those others, they play worse than Chicago.

      All his "talk" is just that – rhetoric that even Oberman can no longer support.

      Is there anyone who will stand up to Obama?

    14. Steven Coy Westminst says:

      Snakehead Carvelle has finally reaped the rewards of backing the Kenyan born Muslim white hating America Hating Mullato ( if hes Black why is he not also White?) Obamanation has deliberately let this drag out, keeping oil skimming rigs mfrom other nations out of the oil spill thereby polluting our shores so he can ban oil drilling offshore. Watch out America even though BP will pay out Billions we the people will pay for it at the pumps. Can you say $5.00 to $6.00 a gallon? Impeach the Ignorant Bastard NOW while we still have some part of the Republic left. Deport all Liberals and Muslims together that way Muslims will have someone to Murder.

    15. Alice Trusley, Homos says:

      It is appalling that our nation's leaders resort to such "old school Chicago tactics". It is sad, but I believe that our fishermen, shrimpers, and those whose livelihood has been damaged by this disaster will never see any of the billions that BP has supposedly agreed to set aside for claims.

    16. Mickey Gilbertson Da says:

      Sir this is a very good article, I'm surprised that a swede would let this administration dictate the articles of engagement.

      We are still in a free country where the rule of law should be the standard for the rich as well as the small people, kidding. I do believe that BP and the top administrators are engaged in a very dangerous game that could set a precedence above and beyond the normal standards of law.

      Where is the public at when even a company is mistreated and abused by the administration. I'm only one man but this is wrong,unless there is serious account of fault at the oil well it sell, then and only then should the rule of law be engaged.

    17. Marty Zegstroo, Buff says:

      Does anyone else feel like they are walking around in a permanent state of shock? My jaw has been in the dropped position for so many months that I am not sure that it will ever return to normal! What is going on is so blatently unconstitutional that I am shaken. Elections can not come soon enough for me!!!

    18. john, Houston says:

      It is apparent that Obama made a deal with BP that only benefits him and his legislative agenda of cap and trade, but at the expense of the Gulf victims and the American people. The federal government appears to be taking over BP now, as it has in the banking and auto industries.

    19. David Hickman says:

      I missed it: when did we move from having a president to having a King? We are supposed to be a country ruled by law not by men. The Constitution is nothing but a piece of paper locked in a vault in the National Archives. It has meaning only to the extent we the people hold it in our hearts, embrace its concepts, and insist that our Government comply. The tragedy is not what Obama has done; the tragedy is that we stand idly by and let him do it!

    20. bigdave ocala fl says:

      Someone somewhere is holding the world hostage, to include Bush, who would have never pushed this on his own. I smell a HUGE RAT somewhere and that RAT is also controlling Obama, who is simply not smart enough to run a cub scout group, much less a country. It appears the last election was rigged and nobody even brought it up. A conglomeration of lunatic liberals, including Hollywood's braindead actors and a news media replete with non-journalistic "scripted news readers" ( every channel except Fox has the EXACT SAME INFO WITH THE EXACT WORDING) has shoved down snoozing America's collective throats an OVERWHELMINGLY UNDER-ACHIEVING Community Organizer who did not possess the experience or skills to be a School Board president, much less the president of the United States! The Media claiming "he makes my legs tingle" and Hollywierd "he's sooo sexy" , obvious qualifications to be PRESIDENT!? And the BIGGEST of all quals…HE"S BLACK!! HOW WONDERFUL! And THEY have ALL lied, covered up and ignored his disastrous AMERICA-KILLING POLICIES which will harm 300 million people for a lifetime! And here we go again with Louisanna! Katrina, mishandled by a Democrat MAYOR and GOVERNOR who did nothing yet slammed BUSH along with a COMPLIANT MEDIA and now we have a REPUBLICAN GOVERNOR BEGGING for help and gets the cold shoulder from Obama, likewise countries and companies who OFFERED TO HELP, the coast gets OILED UP along with the wildlife…and again…Obama can do no wrong in the eyes of this CORRUPT and CONTROLLED MEDIA! NAWWW, theres no collusion or FAVORITISM IN THE MEDIA IS THERE?..?

    21. Blair, Franconia, NH says:

      BP got an offer it couldn't refuse because Obama, like a Mafia don, threatened to put

      BP's leadership in cement overcoats and cement overhoes.

    22. Norm Klevens says:

      The MSM failed to mention a couple of things. [What a surprise] The chief law enforcement officer for the USA was in the little corner room at the white house to add to the threat. And this very straight forward article forgets the stock owners of BP who will forgo their dividends for an entire year. It matters little whether they are US citizens or British. This is almost like the Chrysler bond holders as noted here. One would think that a professional CEO, as our president should be, would discuss what he is about to do with his counterpart, the British Prime Minister, with another country's major corporation. But the Obama is a long way from professional. And that would garner some respect that our previous chief executive is reported to have lost by taking action in that other CEO's country – Iraq. The subject BP well, with all of the safety violations, should have been shut down. Somewhere in all of this, that has been forgotten. But cutting corners to save millions is not a crime, Mr Waxman. It may have been an indication of a problem, but the regulatory agency did not find that, did they ? The Obama take away yesterday is another in a long line of abuses of power that should not go unnoticed in January 2011, Mr. Boehner, Speaker of the House.

    23. Angel, Ohio says:

      Sure they say they don't want them to go into bankruptcy — but what they really mean is "I can't wait to take control of BP". The government will take control of the $20 billion some way and they people that really deserve the help will get only a small portion. The lawyers will be making lots of money once again. Vila-phi big company man like always.

    24. Drew Page, IL says:

      Well, everyone was clamoring for him to "DO SOMETHING" about the oil spill. Now he's gone and done it. I hope everyone is now satisfied.

      We wanted him to "DO SOMETHING" about securing our borders. He did. He came out against Arizona's immigration bill and told Eric Holder to investigate the legality of it.

      We wanted him to "DO SOMETHING" about keeping the country safe from terrorism. He did. He went arounf the world apologizing for American arrogance, dismissiveness and derisiveness, so our enemies would think we were nice people.

      We wanted him to "DO SOMETHING" about 8% unemployment. He did. He passed an$800 billion Stimulus bill and that brought unemployment to over 10%.

      We wanted him to "DO SOMETHING" about the national debt. He did. He trippled it.

      We wanted him to "DO SOMETHING" about health care availability and cost. He did. Has anyone seen their health insurance rates come down? Has anyone with a pre-existing medical condition been able to buy individual health insurance today?

      We wanted him to "DO SOMETHING" about controlling government spending. He did. He formed an 18 member 'Blue Ribbon' Commission to tell him how to do it. The Commission's most recent report to the President said they had run out of funding and would need more money to continue their study.


    25. Timpclimber Provo, U says:

      After 59 days the twidle-dee president finally mets with the BP president. Thank goodness Obama never will manage an emergency room or a 911 center. Can you imagine the disasterous results?? On the other hand he stayed true to the unions and refused to suspend the Jones act so the help offered from 13 nations could not happen, November can't come fast enough for me!!

    26. Larry Welch, Idaho says:

      The evidence supporting impeachment grows every day.

    27. MJF, CT says:

      Mr. Obama has now become Dictator Obama with this move. In the old USA, the government never had a right to extort funds from a private industry (worse yet, a foreign business). Now, whatever Dictator Obama wants, he gets, any way he wants. How long will it be until we have to bow?

    28. Lloyd Scallan New Or says:

      The connections between Obama, BP, and the continuing oil spill continue to come to light. The two latest is BP actually participated in writing part of Obama's Cap and Trade bill. And now, we learn Jamie Gorelick (the Clinton lawyer that put-up the walls between the CIA and FBI which was part of the reason 9/11 attacks succeeded) is now working for BP. Those are just the last. Looking back, anyone would have to be brain dead not to start to realize their is something fishey going on here.

    29. Susan Shumway Phoeni says:

      I personally have no confidence in President Obama. I think he is all show. He cares more about how all of this looks in the media than about the actual folks it affects. If he did care why would he have waited so long to do anything about this spill and why in heaven's name would you turn down foreign nations who want to help and could actually do something to help mitigate the damage. He is going to destroy this country, I truly believe this. His ineptness is out there for all to see.There can be no more hiding Mr. President.

    30. ann, MA says:

      Soon enough, most workers – out of work because of this administration's designed policies of takeover and control – will be on the public dole. Then what happens when the money runs out? Or too much is printed and the dollar becomes worthless? National Geographic produced a program covering a little German history after World War I – too much worthless money, no work and guess who rode into absolute power on the tails of that unwasted crises?

    31. Cheryl, Sterling Hei says:

      Good article/post – thank you for keeping us informed!

      FYI – your link to what I assume is a reference to the Godfather is broken! :) (I did get the reference without it, but just wanted to let you know!)

    32. Barb, Wisconsin says:

      You can take the mob out of Chicago but you can't take the Chicago out of the mob. Mr. Obama has clearly made himself King Obama and damned be the US Constitution. This man has done so much deliberate damage to this nation in just one and a half years and we have two and a half to go. God help us.

      Yes, the case for impeachment grows daily but I last week wrote to my Republican Congressman asking him why no one in Congress seems to be whispering the impeachment word. I received a letter back from my Congressman yesterday that he serves on the Congressional Constitutional Committee and does not see any Obama actions yet that call for impeachment! I was stunned at the response! There is some viral disease that permeates Washington and we must vote all of the bums out. That is, if King Obama does not declare that there will be no more elections. Every day is frightening under this administration. Frightening!

    33. Ed Foster, Brevard, says:

      The assumption that BP is a poorly managed company is unfounded. Its safety record has improved under new management and its drilling plan was approved by the U.S. government. The BOP (Blow Out Preventer) suppopsedly was inspected 10 days before the accident. What good are rules, regulations and inspections if they are not carried out? The government is as much responsible for this accident as BP. Culpability by neglect! BP stood up to the plate and accepted responsibility immediately, They've already paid half the claims submitted and have done so out of cash flow. Obama has made them into a political football, but two can play that claim. Were I the British Prime Minister, I would immediately pull all British troops out of Iraq and Afganistan as a protest against the actions of its "ally" and to save enough money to pay BP's dividend on its behalf.

    34. toledofan says:

      The meeting was an old fashioned Chicage shakedown. It's almost like watching an episode of '24', but, the bad news is that this is happening in real life. I guess, for me, the question is why are we allowing it to happen, why isn't someone taking this guy on; where is the Congress, where's the ACLU, where is the public outcry, where are the Republicans and where is the media? It's like we're in Never-Never Land; it's almost sureal. When you throw in all the mismanagement, the outright blunders, the wasted money, the healthcare debacle, the oil spill, the deficeit, more spending, our foriegn policy blunders all equal a disaster of biblical proportions looming around the corner.

    35. Rich,Phila.Pa. says:

      Since this Oil-spill occured I've been a little down in the dumps,I'am just the little guy watching his country being destroyed & really can not do anything about it.Watch what happens if BP goes bankrupt,also watch our fuel prices go up & every thing else.The Nov.elections could not come fast enough,but there are no guarantees there either.The majority of Americans voted in for there President another Julius Ceasar.

    36. dale wendell says:

      Someone needs to tell the President that 'I'm not a subject …I'm a citizen". He sure is behaving like a king.

    37. Jill, California says:

      The people harmed by this disaster … including BP … should sue Obama for all he has done to delay and hamper efforts to protect the environment. And Obama should be forced to pay from his own assets, not taxpayer money.

    38. Brian K. - Rochester says:

      I certainly hope that "We the People" wake up not only this November… but November of 2012 as well. We no longer have a representative republic in this country! Our Constitution has been completely trampled since Jan 20, 2009 and has been replaced bythe Obama mob… and it is very, very scary! What bothers me the most is how in bed and unapologetic the State Run Media is and how they've almost encouraged this behavior! Our Founding Fathers could never imagine in all the strived for, that this once great country would ever elect a Morally Bankrupt, Lying, Theiving, Corrupt individual like Barack Obama! God Help US!!!!

    39. jason, Milwaukee says:

      First off in 2008 who was President? Bush. Secondly, should BP be allowed to go bankrupt? yes! But then who would pay for the clean up? Somebody has too. I agree our government has become too intertwined with big business but that is not going to change and has not since Ronald Reagan thru Bush, Clinton, Bush, and now Obama. People need to stop seeing this as Republican or Democrats as they are both ruining what this country is about.

    40. Dee, CT says:

      All that is happening to our country is very upsetting and scary to me. I just hope to God that the people who voted for Obama,are listening and watching at what he is doing. When I talk to young people in their 20-30's and older folks in their 70's, they have no idea what is going on and many of them voted for him. They are not listening or reading. I try to inform them, give them websites, and news shows, how many ignorant people are actually out there? God Help US…….

    41. ann kitay fulton, tx says:

      What weighs on my mind is how long will this 'punishment' continue and , if and when we are thrown a bit of relief, are we going to be grateful? Are we going to allow hope and a desire for trust to rise in our hearts? Stockholm syndrome anyone? As a footnote – who says there is not going to be a crisis that will be cause for abeyance of the dreamed for November elections. No, I don't trust this administration – but then I wouldn't trust anyone who broke into my home.

    42. J. R. Stephens, Texa says:

      I once called Obama and his administration "Chicago style Communist thugs." I was wrong. They're all Fascist thugs and worse. The earth tremors across the land come from the whirling bones of our ancestors. In their time this administration would be charged, tried and convicted of treason then punished accordingly. We can hope that is a change worth pursuing.

    43. Bob Wise, Spring, Te says:

      Did I hear anyone say $5 gasoline to pay for this? I bet this will be the end result although logically it shouldn't be so.

      You see the oil companies are not allowed to start new drilling and more and more we will be dependent on foreign oil (T.Boone PIckens called it the greatest transfer of wealth in the history of mankind) The idle rigs will be sent overseas and will be gone forever, exploration will dry up in the US and more people will lose their jobs in the petro chemical industry and so on. All driving up our huge foreign debt and the knock on effect ad nauseum. All because Obama is stupid enough to push his Marxist ideas all the while being the "smooth operator" while we all sink slowly into poverty with debt exceeding GDP daily!!

    44. Ben C. Ann Arbor, MI says:

      Be careful what you ask for – you might get it. I can only imagine the pay-back that will happen when the situation is reversed and one of our companies is hung out to dry. Obama has set a dangerous precident in his "governance" doctorine. But then what does he care – he will be out of office soon.

    45. Ken Jarvis - Las Veg says:

      HF – "it is a huge reason why our economy is not recovering as it should be."


      The reason it is "NOT recovering as it should be." -

      is that the HF and Murdoch's HATE OBAMA group


      When it IS OBVIOUS THERE IS.


    46. J. Moody Villa Rica, says:

      Why isn't the real culprit of this horrible environmental disaster being charged. The environmentalists who were responsible for making them drill in 5000 ft. of water. In shallower water or on land this could have been stopped immediately. When will we stop the environmentalist minority from ruling our lives and ruining the environment with their unreasonable decisions about things they know nothing about.

    47. Pingback: Instapundit » Blog Archive » SHADY MANEUVERING: An Offer BP Couldn’t Refuse. “Last night on CNN former Clinton Administration m…

    48. John , Indiana says:

      Why is it so hard to oust, {impeach}, a president that continually breaks the rule of law. Goes against what the constitution stands for, like making us buy health insurance, etc. Bribes, extorton, Surely, there is enough evidence. If I break the speed limit , my just reward is immediate.

    49. Pingback: No Runny Eggs » Blog Archive » The Godfather Presidency

    50. John Anthony, Byron, says:

      Hussein Obamanation, the Chicago mafioso, has learned his learned his shake down artistry well, in his shaking down of another private busines (this time being BP). He has learned his lessons well from his Chicago mobster teachers. First the bankers, then the auto industry leaders, then the medical industry, now the oil industry. Who next will he shake down? He has already thoroughly shaken down the tax payers.

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    52. sharon york,pa says:

      I agree with the shock syndrome! How sad to have a BUNCH OF THUGS running our government. One can bet this 20 billion dollars will be handed to the thugs with their hands out-not to the people that need it! How can these crooks that is berating Hayward look in the mirror? What happened w/BP is horrific, but the crooks throwing stones can't see the evil in their ways.

    53. Jeanne Stotler, Wood says:

      I too have talked to a lot of people, a lot who have "buyers remorse" I have heard many times about what an eloquent speaker BHO is, I remind them He isn't a speaker, he's a reader and NEEDS his teleprompters. I never cease to wonder why people DON'T listen to candidates prior to elections, they get swayed by a pretty face and eloquent actions and overlook the true quality of the person. There were many signs before 08 about what kind of man BHO was. 1st there was the hiding od birth records, school records etc., then his assoc. with known communist and J. Wright, etc. and yet the masses voted for him and "CHANGE" well they got it, Now lets us all fight to get back our REpublic and Constitution.

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    55. Pingback: SnarkyBytes » Nice oil company you have here. It would be a shame if something bad happened to it.

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    57. RL Atlanta says:

      Go to youTube and watch Obama's speech at West Point where he committed 30,000 more troops to Afghanistan. His body language, stammering and pauses indicate that he was under pressure, fearful even, from someone (the military industrial complex) to wage more war. Young men and women fighting, maimed and dying so a handful of war mongers can get richer. Even L'il Orphan Annie knew that Daddy Warbucks was a criminal. WAKE UP AMERICA YOU ARE BEING RAPED AND PILAGED BY YOUR OWN GOVERNMENT!!!!!!!!!

    58. barbara jakes says:

      how long will impeachment take? till the fall elections?hard to believe that there will any change – I so fear we are a lost nation -i am just a poor southern housewife but I feel the chicago heat!!!!!

    59. pamela creagh, los a says:

      Interesting comment, ann kitay fulton, tx on June 17th, 2010 at 9:38am, I have wondered about this Stockholm Syndrome thing as well.

      Would like to add that I heard a caller on a talk radio program (Rush), she's from Louisiana, say that the local media is reporting that all the oil skimmers have been ordered to stop skimming, for…."inspection". (!) I wonder what is up with that!

    60. T Kulcsar says:


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    63. Verparado says:

      Hate to tell you this, folks, but the Feds “extortion” is perfectly within their rights and power since BP is operating on Federal leases (both at the spill site and elsewhere).

      This happened to the oil company I worked for. They come to you and tell you that either you agree substantively to what they want or else they will simply cancel your leases and will not allow you to bid on any new lease sales.

      BP is huge in the gulf and simply made a sound business decision here. What’s amazing to me is that BP got off so lightly (and that the government came off so poorly in a bargaining situation in which they should have been able to essentially dictate their terms). The fund will be established over a three and one-half years period. BP may have a role in determining what does and doesn’t get paid (this isn’t clear yet) and any money left over reverts to them.

      The lesson is that when you do business with the Feds you agree to what would in any other circumstance be called tyranny. The answer is small government.

    64. Spiritof76, NH says:

      Stop celebrating July 4th as the day of Independence. It is a day of mourning.

      We have lost the rule of law in this country. The Congress and the WH have conspired to usurp the Constitution. The health care bill which requires a citizen to buy a product is blatantly against the supreme law of the land. Artbitrarily setting aside private contract terms (in the case of Chrysler and GM bond holders) by an executive elected to uphold the law is also a clear violation. Shaking down BP with no Constitutional authority is another blatant violation. How many more violations must we endure before we take action to remove the culprits from power for the sake of our country?

      Financial collapse of Fannie Mae and Freddie Mac, unbridled spending, borrowing and printing money and the destruction of the US economy through cap and tax are all being carried out with no protest (I mean massive protest that shuts down Washington DC). The business leaders of today are cowering under threats and misuse of power.

      Don't write about how free the US is. The US is a socialist country headed to Chavez like dictatorship.

    65. Leith Richmond, VA says:

      Don Obama has now declared war on oil companies. Why hasn't the press discussed George Soros and his involvement with a deep well off Brazil and his giving advice now to the Don.

    66. British Columbia, Ca says:

      No matter what BP is made to pay those who caused the whole mess should go to jail just like those who are criminals, because they will NEVER learn otherwise!

      I say this because they love the dollar over and above anything else – human & animal lives included! And it will be criminally negligent not to charge these folks! It will be looked on as a very SICK sort of favourtism in the worst way!

      Now that BP has really messed up the US they have come up to Canada!

      BP had better NOT mess with our environment, animals, and Canadian workers or there will be sheer HELL to pay! They are up here in British Columbia right now scouting out natural gas and they better NOT screw up NOR cut corners!

      Remember we are NOT as nice as Americans when it comes to polluting OUR environment!

    67. Pingback: Obama Takes Godfather Approach to BP

    68. Dave Dabbs, Richmond says:

      The linked WSJ article on Venezuela contains one of the funniest sentences I have ever seen in print:

      "In March, Mr. Zuloaga was briefly arrested for saying on a television show that the nation lacked freedom of expression."

      Funny but sad.

    69. Larry Templeton says:

      Our strength as a nation is that we are a nation of law. Our law is being damaged by failure to adhere to due process. A deal you can't refuse was offered to the first 9 bankers given the opportunity to sign TARP. The General Motors Corporation was taken over after forcing it's CEO to resign . It was subsequently declared to be bankrupt but the share holders were moved to the end of the line financially denying them their rights. Now we have the British Petroleum Company being summoned to an office and given an offer that they could not refuse. This deal that we are expected to believe was accepted without coersion . The 20 billion dollar cost is going to cause dividends to be cancelled for the rest of the year. This failure to follow established legal processes to accomplish what are perceived to be good goals is extremely harmful to our country.

    70. J.M. Butler says:

      When other businesses have failed they have hurt largely those people invested with them. In the case of the catastrophic accident in the Gulf, the damage is more far reaching. It includes potentially thousands of businesses in many states, and the destruction of wildlife and the environment for untold years to come. The damage to the environment can not be calculated.

      Also, Is there anyone who thinks that BP will miss the opportunity to pass the cost of cleanup and other disaster related problems along to the consumer with high prices at the pump? We will be twice damaged. Once with the initial spill, and twice when the cost of the cleanup and settlement of claims gets passed along to us.

      While I would agree that British Petroleum as well as other irresponsible companies shoud be allowed to fail when they have been managed badly, I can see, however, the logic behind having BP put money into an escrow account. At least this would provide some level of assurance that at least some of the cost of cleanup and damages would be paid by BP.

      Even though British Petroleum has been promising to pay all reasonable claims and clean up the oil, their history of manipulating the system knowing full well that they put at risk the potential for a problem of this magnitude, certainly does not speak well for the trustworthiness of the company.

      God help us if we somehow start to rationalize the spill and minimize the responsibillity of companies that use deep water oil drilling in the Gulf or anywhere else in the world.

    71. A_Nonny_Mouse says:

      Well, yeah, here-we-go, Obummer's disregarding the Constitution yet again.

      So, who can MAKE him follow rule-of-law? Well, my take-away understanding (based on the spate of lawsuits filed by private citizens to force Big O to show his birth certificate) is that We-The-People have absolutely NO standing to challenge his presidency. (Technically, the Electoral College elects the President, we citizens don't. I have no idea if the E.C. can threaten any action against him for any reason. Anyone?) Of course Congress has the power to impeach a president; but guess which party controls both houses? Impeachment –or the threat of it– ain't-a-gonna happen either. There's a slim possibility that the courts might grant standing to some individual state's Secretary of State, but I don't think that's a sure thing (and he'd probably lose his job for trying to go around his state's legislature).

      So again I ask — how are we going to make this Child-King turn back into a President who will "preserve, protect, and defend" –and of course OBEY– the Constitution? If public opprobrium is insufficient (ie, the man has no shame) and the political machine backing him is strong and well-funded and committed to increasing the power of the State over its citizens (which the Progressive Democrats sure seem to be at the moment), I think We-The-People are screwed until 2012 at the earliest. And even at that, we may not be able to vote the Great-Big-Government-and-Smothering-Nanny-State types out of office. The America of our forefathers may be dead already. Not a cheerful thought…

    72. Alex Simic, Windsor says:

      President Obama gives facsism a bad name.. He acts as though he has absolute power but is nowhere near it. Unfortunately, he is causing an incredible amount of damage to the American citizens while he attempts to accumulate power.

      Meanwhile, the entire world is watching all of this.

      I would not be suprised to see BP abandon all of it's assets and operations in U.S. territory. In fact, I wouldn't be suprised to see all multi national oil companies abandon it's U.S. operations.

      He has already embarassed and disgraced the Toyota execs. He is discouraging foreign investment and he is stiffling domestic economic activity.

      Hopefully, this can be reversed before the damage is too great.

      Here is the sad part. Obama has created the scenario where foreign allies will only trust America one election at a time.

      I would like to conclude with a slogan from the Canada Free Press

      "Because without America there is no free world"

    73. Pingback: Obama declares 'reckless' BP will pay Gulf cleanup

    74. Inapart, S.C. says:

      This administration would put the mafia to shame. Kind of frightening, and every REAL AMERICAN should be aware that this criminal administration will not stop until they have full control of the country, and your daily lives. Already we’ve lost freedoms, and it’s just a matter of time before we’ll be enslaved by this criminal.


      I think that “our” government held up(shook down) BP!! It would have been taken care of by the rule of law. This bunch of thugs in the White House need to be voted out of office as soon as posible!!!!!!!!!!! God Bless the USA!!!!!!!!!!!!!!!!!!

    76. harv, Pa says:

      We are screwed, even if we manage to vote new blood in on election day (Nov.) ,the lame duck congress will be pushing through as many bills as they possibly can until they leave office.And you know they are not going to be the kind that benifit the American people. FREEDOM IS NOT FREE! and neither are we , we're handcuffed by the law that is supposed to enable us to seek and get justice. The Constitution is being ignored, walked on, and disrespected by a government that controls congress, our only recourse is blocked until election day. But ever that is not soon enough, the road to ruin continues at a faster and faster pace nad there's nobody to throw on the brakes. I think that when government usurp the laws of the people that the majority of states have the right to request the Supreme Court to remove gross offenders from office.

    77. Tenn Slim, Western T says:


      The list of OBNA controlled, influenced and out right directed companies continue to grow. As the list grows, the GNP declines, Socialism at its finest.

      Recall the Transformation of America in the Vision of Obama, requires a re -structure of all Capitalistic processes, Production, Energy, Food and Information flows. So far, while the BP Spill takes our attention , FCC is clamping down on doing business on the NET, EPA is taking control of the actual energy production companies, and the Dept of Education continues to subvert the Schools of the Nation. The USA is slowly sinking into a morass of debt, loss of confidence, rising unemployement without a murmer of protest from the MSM.

      If I were a Democratic Strategist, I would be dancing in the streets.


      Semper Fi

      We WILL Prevail


    78. Scott, Montana says:

      Having grown up in, and worked in the oilfield for most of my life, I shudder to think of the repercussions that this Government's policies are going to have. It's been bad enough, what with the government making it more profitable to remain unemployeed then to return to work, now they're going to take away the work from those of us who want to work. I live in the middle of one of the largest oil plays in the United States, the Balkin reserve. There's over a 1,000 positions that need to be filled in this area, but nobody want's to do it because it's easier to remain unemployeed and collect a government check. These are good, well paying positions. But they do require that you break a sweat. Evidently, most people are not willing to do that anymore.

      Now, with this government shakedown of BP, and the new safety committee that has been appointed by Obama, they're probably going to start shutting down new drilling around here. When are the people of this country going to say enough and retake control of our country from these petulant children. Look at them, if things don't go their way, they throw a fit and then a tantrum, and blame everybody else. Obama's the worst of the bunch.

      The industries of this country need to stop bowing before the circus in Washington, and tell these children that they're not going to stand for it any more. Washington needs us more then we need them. If we start to push back, by invoking our Constitutional protections and rights, they loose all power. Stand up America.

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    80. eray seven mileohio says:

      to stop bp oil leak your big moth on the pipe. im sure it will fit. heritage you are bias

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    82. Ron says:

      Where are the oil skimmers? http://bestcreditrepair23.com

    83. Sue Marie, Detroit says:

      Obama and his mafia men do not care what the Average American or Heritage Foundation thinks. They are out to ruin this country and the planet. Control and destruction of the human soul is their goal. They want a political class who George Soros picks and the rest of us are their serfs or slaves whatever term you want to use.

    84. Derek, Florida says:

      We can vote BHO out in 2012, if he is not impeached first. Now lets put the Senate and Congress on notice! Let's vote them ALL out, and show them that We The People will not tolerate the wanton corruption in Washington. TARP, FANNIE MAE, FREDIE MAC, STIMULUS I , JJ, BP'S 20B & 100M, not to mention the buying and selling of BHO former seat.

      No incumbents, they will all be on equal terms!

    85. bob says:


    86. JOSEPH P.MARTINO says:







    87. Maya Libretti, Calif says:

      In the article above, the term "free institution" is an oxymoron. The act of incorporation "protects" businesses right from the start. The first thing that a corporate charter does is create an entity that is intended to be immortal, or at least succeed past the lifetimes of the founders. This is already unnatural. The owners of the corporation are also protected from personal liability, which is an artificial shield. And then we can list all the corporate tax breaks. I agree that companies should be allowed to freely succeed or FAIL. But if businesses choose to enjoy the government-sponsored advantages of incorporation, then I propose they have an added responsibility *to* the government. The era of corporations having their cake and eating it too I hope is coming to an end. If a business wants to enjoy the protections of incorporation, great. They can agree to things like community liability and CEO pay caps. If however, a business wants to be freer, then fine. They can operate and risk freely, without the advantages of incorporation. If they profit, great, and if they fail, then the owners will also be personally liable. To me this seems fair and much more in line with a true free market idea than the rhetoric of the "poor beleaguered" corporations whose CEOs will still walk away with hundreds of millions even if the "company" fails. To say nothing of their whining about having to be responsible to the community which granted them their charter in the first place.

    88. Laird O The darks Is says:

      Dear President you have forgotten something very Important why is the Firm who built the Rigg not being harrassed and sued. They are more to blame the BP

      Sorry Obama I had hope for you but your bout as big a plonker as Bush was

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