Company stock tanks as BP criminal investigation begins
It isn’t the first time that BP will have been called criminals, but the Attorney General has launched a BP criminal investigation. As if the government and Eric Holder making life even more miserable for the energy giant was not enough, it was also announced that on the heels of that news, the stock price for BP plummeted. The “top kill” method for dealing with the BP oil leak has apparently not worked, and the company has a public relations nightmare unlike any since Rob Reiner made “North.”
BP criminal probe
Eric Holder, the Attorney General, has announced that his office is conducting a BP criminal investigation, to determine to what extent BP should be held liable. The oil rig explosion in and of itself cost 11 workers their lives, and the full extent of the environmental damage won’t be known for some time. Needless to say, it will cost BP a pretty penny, and they may need installment loans before it is all over. The actual investigation began several weeks ago, but it wasn’t announced until now, according to CNN.
BP stock sinks
To make matters worse for the company, BP stock has begun to slide down in a hurry, according to Forbes. Since the oil rig explosion and the subsequent Gulf of Mexico oil spill, BP stock has lost almost 37 percent of its value, costing the company $75 billion in market value. It is also reported that the BP oil spill has cost the company $930 million. The loss for Tuesday, June 1, alone was a 15 percent loss, as stocks lost more than $6 per share in value. This is piggy-backed on top of the failure of the top kill operation.
British Petroleum in trouble
Though British Petroleum is trying hard to remedy the situation, there is a hostile feeling among many against the British energy conglomerate. A BP criminal investigation may amount to little more than fines, and it isn’t known whether executives will be extradited to stand trialt. The stock losses do not bode well, though, and one wonders if they will perhaps go bankrupt before they can afford to clean up their mess.