Friday, 18 June 2010

BP CEO Tony Hayward, Congress and the 5th Amendment

I had the joy of watching the Kangaroo Court US Congressional panel grilling BP CEO Tony Hayward by a bunch of Congressmen in a competition on who could bag the afore mentioned CEO the most. It was nauseating, the picture of the oil covered bird the icing on the cake of a repulsive spectacle. Obviously the question was “What went wrong” which is a fair enough question. The answer “We don’t know yet” didn’t go down too well and the US press and Political class was screaming for blood after accusing Hayward of stonewalling. And may I ask the members of congress what he was supposed to say bearing in mind that we don’t actually know exactly what the fault was yet and how exactly it was caused. Was it weak cement, unexpected pressure, weakening the area by removing mud, not having spare pipes, a catastrophic failure of the Blowout preventer, would having more have helped and or all of the above? And even if we did, is Mr Hayward supposed to say “its all our fault guv” bearing in mind he’s going to be raped in the courts.

Have the US Congress ever heard of the 5th Amendment? They’ve already broken the rule of law by forcing BP to put $20Bn in escrow before the total damage is worked out, and now they want to bully the guy into prejudicing his own defence. Will the BP escrow account be considered “Double Jeopardy” if the US courts drag BP into paying out a second time. As my blog colleague says, this is just the start of a witch hunt that is going to cause foreign capital to flee the US. There’s no way the British government will allow the US government to drive this company to the wall. BP will do all it can to fix the problem and then BP will leave, and congress have just made BP say that its no longer worth it to remain in the US. Some may celebrate that fact, right up to the point they have to refill their SUV.


Anonymous said...

And don't you just feel sorry for the BBC, their 'messiah' Obama having been shown to be just a posturing moron?

Perhaps the reason he is so miffed is that the oil leak has reduced the water tension so much that he can no longer walk on it!

Anonymous said...

"Bp will do all it can to fix the problem and then Bp will leave."

In my opinion I think that is the master plan and the reason for the kangaroo court yesterday. Bp has a prime oil location in the gulf and there are many US oil companies salivating right now and ready and willing to take over.

Oil companies, with the help of Obama's admin, are trying to drive Bp stock prices down by hitting them with hefty penalties, lawsuits, payouts and the threat of criminal charges. Then another oil company can buy and take over. Just my opinion. I also think as Rahm Emmanuel states "Never let a crisis go to waste" Obama is using this disaster to push their cap and trade bill through.

Many of us Americans are fed up with congress. We are tired of them cherry picking which companies they will punish and which ones will get a free pass like Fannie and Freddie. If any criminal chargs go through I would like to see our own federal regulators who gave Bp a pass first in line as well as some of our career politicians who have been far to cozy with Wall street making millions instead of doing their jobs, like working on an alternative energy plan over the last few decades.

There is alot of blame to go around and I'm not giving Bp a pass, but I did feel for Tony Hayward in that situation yesterday.

Lord T said...

On the plus sidemany more US companies pollute foreign countries on a regular basis. Now they allknow what they can do and get away with.

The rules will change, companies will create smaller ones for each drilling area, likemovie companies do, and each will go bust if a fly dies in an accident leaving the master company still floating.

They only get to do these things a few times before the market adapts. However, as we know Governments never look beyond the following week.

FireForce said...


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