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Thoughts on BP as Obama and the top executives of BP meet today


(I started to write this about three hours ago and just finished it up as I heard a deal was done with Obama and BP)

Some backroom out of the camera deals I would imagine will be made or have already been made.

Obama gets the escrow of maybe 10-20 billion dollars within 90 days (BP needs to raise the money). BP in return gets a limit in the amount of fines and penalties it has to pay the government. This works well for Obama as it makes him look good and it puts a number around the costs that BP will end up paying the government.

Obama can not risk that he pushes BP to far and they pull the plug and simply file for Bankruptcy and leave the bill on Obama’s tab. Politically this would be a negative at a time when Obama does not want to appear to be in less control then he already is.

If BP goes along which I will guess they will this also means they do not think they are going to file bankruptcy and who better to know than
BP along with the help of Goldman Sachs. This will be a good thing for those on the sidelines waiting to get in and especially those that have been holding on.