Knock on effect of BP's $20 Billion cleanup....

vivatifosi

OP, it isn't great news for pensions, however no pension scheme in this country would be solely invested in BP. For that matter, it is very unlikely to be invested solely in UK shares, unlikely to be invested only in shares whatever the country of origin and is more likely to built up of a mix of investments with different levels of risk. As Thrug says, diversity is key. Equally, BP is likely to end up massively out of pocket, but is by no means likely to go pop in its entirety. Each of these waters down the level of risk, so newspaper headlines shouting about how we are all going to lose a substantial part of our pensions are somewhat disingenous.

1984ReturnsForReal_2

vivatifosi wrote: »

OP, it isn't great news for pensions, however no pension scheme in this country would be solely invested in BP.

I was listening to an pension industry spokesperson the other day & she pretty much shrugged off the BBCs stance saying it threatened pensions.

She said that the shares are spread far & wide so it will have pretty much no effect whatsoever...

:rotfl:

It was funny listening to the presenter basically have to mumble his way out from that point on...

vivatifosi

1984ReturnsForReal wrote: »

She said that the shares are spread far & wide so it will have pretty much no effect whatsoever...

:rotfl:

It was funny listening to the presenter basically have to mumble his way out from that point on...

My bigger concern at the moment is that we are all being sold this vision of "sensible" banking vs high stakes "casino" banking, without being told where our pensions are going to be kept. Clearly investment banks are needed for investing and it does concern me when they are made out to be like something out of the wild west.

setmefree2

Attacks on BP are Injustice to Investors: Hobbs

http://www.cnbc.com/id/37761163/

1984ReturnsForReal_2

headcone wrote: »

I will cos I know;)

Whats happening with those BP shares?



And no one has said sh*te about $20bn not being enough yet.....

Wookster

1984ReturnsForReal wrote: »

Whats happening with those BP shares?



And no one has said sh*te about $20bn not being enough yet.....

There is still enormous uncertainty, as to the size of the leak, when it will be finally stopped and how much the US government will fine BP i.e. will they throw the book at them or will it be a more considered penalty.

1984ReturnsForReal_2

headcone wrote: »

I will cos I know;)

How is your investment doing?



& yet still no mention of $20bn not being enough money....

1984ReturnsForReal_2

headcone wrote: »

Probably a good time to buy in the next few days.

Come on then....


How much are you down??;)

Thrugelmir

1984ReturnsForReal wrote: »

How is your investment doing?



& yet still no mention of $20bn not being enough money....

Down at 306p today a drop of 6%.

$20 billion is only the compensation fund.

Unlikely BP will ever return to its former state. BP has suffered a major downgrading in the credit markets. So its cost of borrowing is being pushed upwards and asset sales are likely in order to raise capital finance. There are stories that a $30 billion borrowing facility is being arranged.

michaels

Yeah - looking like a Greece / Northern Rock really - increasing borrowing costs and no where near enough liquidity despite the asset base once the fines and jury awarded compensation claims come in. If there really is the opportunity of jettisoning the US business it needs to be done now (possibly folding the rest of the company in to Royal Dutch/Shell?) - but I suspect the US courts and authorities would try to deny that option.

Thrugelmir wrote: »

Down at 306p today a drop of 6%.

$20 billion is only the compensation fund.

Unlikely BP will ever return to its former state. BP has suffered a major downgrading in the credit markets. So its cost of borrowing is being upwards and asset sales are likely in order to raise capital finance. There are stories that a $30 billion borrowing facility is being arranged.