Tuesday, June 15, 2010

BP Hires Blackstone Group

Reuters reported:

BP has hired investment banks Blackstone Group, Goldman Sachs Group and Credit Suisse Group as advisers, a source familiar with the matter said, without identifying the purpose of the advice.
Private equity firms like Blackstone have stellar political connections, know how to ring fence liability, and have billions in dry powder. They love buying stressed assets on the cheap. Yet, President Obama remains positive.

“I am confident that we’re going to be able to leave the Gulf Coast in better shape than it was before,’’ said Obama.

Financial pirates stand ready to take advantage of the catastrophe. It's a shame they aren't contributing their assets. It wouldn't take much for the man in charge to ask them for help.

Update: BP plans to sell assets and divert funds from three quarterly dividends. BP will also reduce expenditures, the very thing that contributed to its Texas City plant explosion and Deepwater Horizon nightmare well.