Robert Reich's Blog
June 1, 2010
Five reasons Obama should put BP under receivership
It’s time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP’s operations in the Gulf of Mexico until the gusher is stopped. This is the only way the public can know what’s going on, be confident enough resources are being put to stopping the gusher, ensure BP’s strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the President is ultimately in charge.
If the government can take over giant global insurer AIG and the auto giant General Motors and replace their CEOs, in order to keep them financially solvent, it should be able to put BP’s north American operations into temporary receivership in order to stop one of the worst environmental disasters in U.S. history.
The Obama administration keeps saying BP is in charge because BP has the equipment and expertise necessary to do what’s necessary. But under temporary receivership, BP would continue to have the equipment and expertise. The only difference: the firm would unambiguously be working in the public’s interest. As it is now, BP continues to be responsible primarily to its shareholders, not to the American public. As a result, the public continues to worry that a private for-profit corporation is responsible for stopping a public tragedy.
Five reasons for taking such action:
1. We are not getting the truth from BP.
2. We have no way to be sure BP is devoting enough resources to stopping the gusher.
3. BP’s new strategy for stopping the gusher is highly risky.
4. Right now, the U.S. government has no authority to force BP to adopt a different strategy.
5. The President is not legally in charge.
The President should temporarily take over BP’s Gulf operations. We have a national emergency on our hands. No president would allow a nuclear reactor owned by a private for-profit company to melt down in the United States while remaining under the direct control of that company. The meltdown in the Gulf is the environmental equivalent.
Please read the full article with the full details on the five reasons at:
http://www.csmonitor.com/Money/Robert-Reich-s-Blog/2010/0601/Five-reasons-Obama-should-put-BP-under-receivership