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Entries in Dividends (1)

Wednesday
Jun092010

BP Should Suspend Dividend Payments, Marketing Campaigns, Say House Democrats

By Robert Hune-Kalter
Talk Radio News Service

Rep. Peter Welch (D-Vt.) and other House Democrats today called on oil company BP to suspend making dividend payments and creating marketing campaigns.
A letter sent by Welch to BP CEO Tony Hayward earlier this week contained the following statement:

“As BP presides over one of the greatest environmental and economic catastrophes of our time, we find it troubling that your company plans to divert financial resources to shareholder dividends and slick marketing campaigns."

Despite the fact that Hayward told the House Transportation Committee that his company had a plan in place to deal with large spills, Cohen charged on Wednesday that this was not the case. The Tennessee Democrat said BP's legacy will forever be tied to the ongoing spill.

“We’re two days after World Ocean Day and we’re polluting one of our most precious bodies of water and possibly destroying the economic vitality and future of the Gulf Coast. BP is going to be known in the future as Biggest Polluter,” he said.

Rep. Lois Capps (D-Calif.) suggested that the best public relations campaign for BP would be transparency and responsibility, putting its profits in reserve to meet its obligation to the Gulf Coast.

“The public does not like these ads, and when they hear of these dividends they’re going to see right away how terrible this is, that a company would be thinking so much of its shareholders when so many people are suffering on the Gulf Coast,” she said.

Cohen said Democrats are hoping to put BP into receivership so that the company cannot escape its financial responsibility through bankruptcy.

“I believe that they will eventually go bankrupt. I see BP pulling out, just like they pulled out of New Orleans after Andrew Jackson went to New Orleans in the Battle of Britain. The losers will be the people who obligations are due to,” he said.