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   BP to pay nearly $5 billion in fines, or about 16 days worth of profits

15 Nov 2012 11:51 AM   |   2080 clicks   |   USA Today
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JackieRabbit     
Price of gas to go over $4 in 5.... 4.... 3... 2...

15 Nov 2012 11:55 AM
ristst     

JackieRabbit: Price of gas to go over $4 in 5.... 4.... 3... 2...


Damn, ya beat me to it.

15 Nov 2012 11:56 AM
sweetmelissa31     
People who made decisions that led to the disaster still filthy rich.

15 Nov 2012 11:58 AM
Satanic_Hamster     
Remember: Kill a dozen workers due to lax safety standards, cover it up, massively pollute the environment and have the federal and state governments incur massive cleanup costs? Why, those people are Republican heroes!

15 Nov 2012 11:59 AM
Aidan     
Was listening to NPR this morning. They (dunno who precisely) figured it could be as high as 20B, but probably around 11B. They said BP had 3B saved up to pay already.

Not impressed. 4.5B is not enough, IMO.

15 Nov 2012 12:03 PM
Ehh     
My god! This could mean Carl-Henric Svanberg doesn't get a new superyacht this year!

15 Nov 2012 12:03 PM
ZAZ    [TotalFark]  

According to the press release,

As part of the resolution, BP has agreed to plead guilty to 11 felony counts of Misconduct or Neglect of Ships Officers relating to the loss of 11 lives; one misdemeanor count under the Clean Water Act; one misdemeanor count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress.
...
Under U.S. law, companies convicted of certain criminal acts can be debarred from contracting with the federal government. BP has not been advised of the intention of any federal agency to suspend or debar the company in connection with this plea agreement. BP will continue to work cooperatively with the debarment authority.

15 Nov 2012 12:04 PM
ZAZ    [TotalFark]  
Aidan

The fine is supposed to be related to the crime. Only two misdemeanor counts relate to the oil spill itself: BP got oil in the water and on birds.

15 Nov 2012 12:06 PM
Random Anonymous Blackmail     
JackieRabbit

Price of gas to go over $4 in 5.... 4.... 3... 2...

Commodity markets do not work that way, only banks.

15 Nov 2012 12:07 PM
netringer    [TotalFark]  
What happend to "BP will not leave the gulf until we have cleaned up every drop?"

Instead they run commercials with, "BP is committed to working to help cleanup..."

How great it is that BP will help clean up the environmental disaster that BP created!

Joe Barton wants to apologize again.

15 Nov 2012 12:07 PM
Representative of the unwashed masses     

Aidan: Was listening to NPR this morning. They (dunno who precisely) figured it could be as high as 20B, but probably around 11B. They said BP had 3B saved up to pay already.

Not impressed. 4.5B is not enough, IMO.


FTFA "From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf. We apologize for our role in the accident, and as today's resolution with the U.S. government further reflects, we have accepted responsibility for our ctions."

and...

Those fines and settlements could total more than $40 billion if BP is found "grossly negligent" by a federal judge, LeCesne said. A federal judge in New Orleans will hear a trial to assess fault in the case in late February, he said.

"BP is facing a very daunting potential financial bill for the remainder of this case," LeCesne said.

BP has booked provisions of $38.1 billion to cover its liabilities from the incident, but the company has said the final cost remained highly uncertain. BP also recently announced that it expects to make the final payment this year to a $20 billion trust fund to cover damage from the blowout.

In March, BP announced a settlement estimated at $7.8 billion with more than 100,000 individuals and businesses for medical and economic losses.


They aren't saints but the 4.5 Billion isn't the only cheque they have to stroke by a long shot. Sounds like they are taking responsibility and paying up to me...

15 Nov 2012 12:08 PM
Perverted Idiotic Nobleman     
Obstruction of Congress? What does that entail?

15 Nov 2012 12:09 PM
rdu_voyager     
If a person convicted of a felony lose the right to vote, can a corporation convicted of 11 felonies lose the right to lobby congress and donate to candidates and PACs?

15 Nov 2012 12:13 PM
AcneVulgaris     
There should be no more BP.

15 Nov 2012 12:14 PM
ZAZ    [TotalFark]  
Obstruction of Congress? What does that entail?

If Tony Hayward lied to the committee, that would count.

15 Nov 2012 12:14 PM
The more you eat the more you fart     
Yeah, the 4.5B is a small amount, but that's the fine.

They HAVE paid for clean up and paid ppl for their losses due to closed fishing grounds, etc.

15 Nov 2012 12:14 PM
dj_spanmaster    [TotalFark]  
FTA: "From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf. We apologize for our role in the accident, and as today's resolution with the U.S. government further reflects, we have accepted responsibility for our ctions."

Two notes:
- "legitimate" is a terrible, relative word
- dude's so cheap he couldn't even drop $250 on an 'a' at the end.

15 Nov 2012 12:15 PM
plcow     
This is just the criminal fines. i.e. penalties. This doesn't include the money that BP has to pay in terms of compensation for damage caused. So relax everybody.

15 Nov 2012 12:16 PM
Firethorn     

netringer: What happend to "BP will not leave the gulf until we have cleaned up every drop?"


Logically speaking, and we've seen this with other spills, at some point you cause more environmental damage going after those remaining drops over just leaving them for the bacteria to eat. 

So I see it mostly as 'truth in advertising'. They're not going to get every drop. Other agencies are cleaning up on their own, the bacteria is eating tons of it a day, etc...

15 Nov 2012 12:17 PM
ZAZ    [TotalFark]  
rdu_voyager

Actual humans convicted of felonies still have a right to speech.

As noted in the press release I quoted, a company convicted of a felony can be disbarred from federal contracts. I don't know if that's a big deal for BP. There's a lot of "too big to fail" in enforcement of contracting laws.

15 Nov 2012 12:17 PM
SweetDickens     
Good luck ever seeing a dime of that..........Exon still says FU Alaska........politicians paid off.......

oh, you still have a bit of oil left....... EVERYWHERE

15 Nov 2012 12:20 PM
sigdiamond2000    [TotalFark]  

ZAZ: rdu_voyager

Actual humans convicted of felonies still have a right to speech.


Actual humans convicted of felonies also generally face jail time.

15 Nov 2012 12:21 PM
vudukungfu    [TotalFark]  
If you're not hanging them by the neck for what they did, then you deserve a cock punch.
Assholes on every side of this cluster fark.
Bought and paid for.

15 Nov 2012 12:24 PM
SpectroBoy     
I, for one, and glad that this has been settled and that oil companies will never again take foolish risks on safety items again!

15 Nov 2012 12:24 PM
SpectroBoy     

Satanic_Hamster: Remember: Kill a dozen workers due to lax safety standards, cover it up, massively pollute the environment and have the federal and state governments incur massive cleanup costs? Why, those people are Republican heroes!


You forgot to say "job creators"

Every time a worker dies, a new person gets a job! !!!

15 Nov 2012 12:25 PM
star_topology     
Something tells me that if Romney won the election, this would not be happening.

15 Nov 2012 12:28 PM
vudukungfu    [TotalFark]  
Holder

Bought and Piad for.

15 Nov 2012 12:31 PM
vudukungfu    [TotalFark]  

plcow: This is just the criminal fines. i.e. penalties. This doesn't include the money that BP has to pay in terms of compensation for damage caused. So relax everybody.


People were killed.
They didn't just keel over.

You or me would be wearign a #10 can sized but hole about now, if we were in charge.

15 Nov 2012 12:33 PM
Aidan     

Representative of the unwashed masses: They aren't saints but the 4.5 Billion isn't the only cheque they have to stroke by a long shot. Sounds like they are taking responsibility and paying up to me...


That's true. I know they've put a lot of money into the cleanup. The thing is that these kind of fines are supposed to drastically discourage anyone from ever thinking of doing this again (I'm specifically speaking to ignoring safety regulations). That's *on top* of paying to have everything cleaned up.

15 Nov 2012 12:34 PM
Comic Book Guy     

star_topology: Something tells me that if Romney won the election, this would not be happening.


Except if Romney would have been elected, Obama wouldn't have vacated the office until January.

15 Nov 2012 12:35 PM
GoldDude     
SEVERE MATH FAIL.

FTFA: Profits were $5.5B in Q3, or about $60M/day. This fine is $4.5B, so about 75 days of profit.
And this is not the end of the lawsuits over this incident, and company has booked provisions of $38.1B, or about 635 days of profit, or about 1.75 years.
So think on a personal level, if you had a fine that was 2 years of your salary.

I'm not defending the company, but no need to exaggerate like the fine is less than a tip on one of their boozy business lunches.

15 Nov 2012 12:36 PM
grimlock1972     
way too low of a fine should have been at minimum 20 billion but id have like to have seen 100 billion. A fine that big would be enough to make the opil industry sit up and take notice and do something to improve their spill avoidance procedures and equipment.

15 Nov 2012 12:44 PM
Marsh Maven     
This settlement is only for the criminal charges. It does not cover the Clean Water Act penalties and Natural Resource Damage Assessment fines that will address the environmental damages of the spill.

15 Nov 2012 12:51 PM
GranoblasticMan     

AcneVulgaris: There should be no more BP.


There should be more DP.

15 Nov 2012 12:57 PM
WorkingInParadise     
FTA: Seaman's Manslaughter Act. Oh God, if that's a felony we're all going to Federal PMITA prison!

15 Nov 2012 01:01 PM
GranoblasticMan     

WorkingInParadise: FTA: Seaman's Manslaughter Act. Oh God, if that's a felony we're all going to Federal PMITA prison!


No, you're getting it confused with the Semen Manslather Act

15 Nov 2012 01:03 PM
WorkingInParadise     
Oh, wait. Seaman. Never mind...

15 Nov 2012 01:03 PM
FeFiFoFark     
Remove their charter to do business in USA (or the equivalent). Fu(k. Them.

15 Nov 2012 01:04 PM
Comic Book Guy     

sigdiamond2000: ZAZ: rdu_voyager

Actual humans convicted of felonies still have a right to speech.

Actual humans convicted of felonies also generally face jail time.


I would have loved it if Sarbanes-Oxley tied the Chairman to all company aspects, and not just the accounting numbers. You're absolutely right, if the company is convicted of a felony, the head of that company needs to bear the brunt of that outcome.

15 Nov 2012 01:06 PM
ringersol     
GoldDude: "So think on a personal level, if you had a fine that was 2 years of your salary."

So... about what the rest of us would pay for getting busted sharing a couple mp3s?

15 Nov 2012 01:18 PM
SnyderCat     
I'm waitin' for $7 a gallon gas.

15 Nov 2012 01:20 PM
Avonmore     
As someone currently sitting in a BP office I'm getting a kick, etc.


/no I don't work for them

15 Nov 2012 01:33 PM
Too Pretty For Prison     
If I read that right, they've made a profit of $43B since then and their fine is 10% (roughly). They've also set aside another $20B - so after all that, they are still roughly $20B in the black. Guess the big boys will have to light their cigars with 50's instead of 100's for a few weeks 'till they get caught up.

15 Nov 2012 01:48 PM
rrife     
$5B is NOT 16 days worth of profit, more like 3 months worth.

15 Nov 2012 01:57 PM
dj_spanmaster    [TotalFark]  

rrife: $5B is NOT 16 days worth of profit, more like 3 months worth.


Hardly the point.

15 Nov 2012 02:03 PM
SquiggsIN     

rdu_voyager: If a person convicted of a felony lose the right to vote, can a corporation convicted of 11 felonies lose the right to lobby congress and donate to candidates and PACs?


There would just be 1000 loopholes to dissolve and reincorporate under a new banner to get around such restrictions.

15 Nov 2012 02:29 PM
TheGogmagog     

15 Nov 2012 02:32 PM
SquiggsIN     

SnyderCat: I'm waitin' for $7 a gallon gas.


Gas is about $8.12 / gallon in the UK based on exchange rates. If Americans could do the math themselves, there'd be a lot less rage in regard to fuel prices.

15 Nov 2012 02:36 PM
SheaKub     
Subby used "revenue" as most do. Revenue means no expenses, and expenses are massive. Usually you can take 95% of revenue away for expenses for a company of this size in this industry.

Net income, often called profit, makes this payment about 1 quarter worth.

Before you poo-poo that, consider that this is only ONE payment BP is making. Cost of cleanup, other lawsuits and such add another $30 billion to this number.

This means BP has paid two years worth of profits due to this disaster, not 16 days worth of profits. If you think any company just says "oh well, no big deal, lets keep going" after losing two years worth of profits, you are obviously not investor material.

I make no defense of BP, but the subby is obviously downplaying the impact of the disaster to BP for, likely, some political reason. I'm an investor and the numbers are the truth - this disaster hurt BP badly.

15 Nov 2012 02:37 PM
SquiggsIN     

SheaKub: Subby used "revenue" as most do. Revenue means no expenses, and expenses are massive. Usually you can take 95% of revenue away for expenses for a company of this size in this industry.

Net income, often called profit, makes this payment about 1 quarter worth.

Before you poo-poo that, consider that this is only ONE payment BP is making. Cost of cleanup, other lawsuits and such add another $30 billion to this number.

This means BP has paid two years worth of profits due to this disaster, not 16 days worth of profits. If you think any company just says "oh well, no big deal, lets keep going" after losing two years worth of profits, you are obviously not investor material.

I make no defense of BP, but the subby is obviously downplaying the impact of the disaster to BP for, likely, some political reason. I'm an investor and the numbers are the truth - this disaster hurt BP badly.


Why don't you invest in a green company for a change? You'll sleep better at night knowing that your great grandchildren will be able to breathe.

15 Nov 2012 02:40 PM
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