...and arm-twists BP with open threats – is this ethical, if not illegal?
In a sequence of events reminding one more of the mafiosi-like Putin administration, Obama and his White House staff – with Chief of Staff Rahm Emanuel leading from the front – first hounded BP officials (read a detailed story on BP in our strategy section in this issue), then threatened them, and finally arm-twisted them to set up an escrow account of $20 billion for providing relief to the claims arising out of the BP oil spill.
There are many reasons why this particular case of money jostled out by Obama from BP is unethical and even illegal – despite the general public viewpoint – and one believes done purely for playing to the galleries for benefit at the hustings. Firstly, in the capitalist setup that the United States operates in, it is the insurance company (Jupiter Insurance Inc. in this case) that covers the spill that needs to be steamrolled by Obama and not BP. It doesn’t matter that Jupiter Insurance is more or less owned by BP; equity ownership always comes with zero additional liability – that is, BP cannot be legally asked to pay a penny more than its investment in Jupiter Insurance.
In a sequence of events reminding one more of the mafiosi-like Putin administration, Obama and his White House staff – with Chief of Staff Rahm Emanuel leading from the front – first hounded BP officials (read a detailed story on BP in our strategy section in this issue), then threatened them, and finally arm-twisted them to set up an escrow account of $20 billion for providing relief to the claims arising out of the BP oil spill.
There are many reasons why this particular case of money jostled out by Obama from BP is unethical and even illegal – despite the general public viewpoint – and one believes done purely for playing to the galleries for benefit at the hustings. Firstly, in the capitalist setup that the United States operates in, it is the insurance company (Jupiter Insurance Inc. in this case) that covers the spill that needs to be steamrolled by Obama and not BP. It doesn’t matter that Jupiter Insurance is more or less owned by BP; equity ownership always comes with zero additional liability – that is, BP cannot be legally asked to pay a penny more than its investment in Jupiter Insurance.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
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IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
