BP (BP) Gulf Settlement May Cost Twice as Much as Originally Intended
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Rating Summary:
22 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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BP plc (NYSE: BP) may be nearing the end for its Macondo well oil spill disaster, according to one analyst Thursday.
An analyst from Morgan Stanley believes BP might pay anywhere from $20 billion to $25 billion to the U.S. Department of Justice in order to settle the April 2010 event. Costs included in the fee would be civil charges, criminal penalties, and Clean Water Act fines.
More importantly, the number could be more than double the $12 billion BP set aside for such a settlement.
Following the event, BP took about $40 billion in charges and set-up a $20 billion fund for victims of the incident, which ranged from family members of those killed to the loss of fishing business in and around the area where the incident occurred in the Gulf of Mexico.
The Morgan Stanley analyst sees BP making the settlement announcement following its fourth-quarter numbers, expected out on February 7th.
An analyst from Morgan Stanley believes BP might pay anywhere from $20 billion to $25 billion to the U.S. Department of Justice in order to settle the April 2010 event. Costs included in the fee would be civil charges, criminal penalties, and Clean Water Act fines.
More importantly, the number could be more than double the $12 billion BP set aside for such a settlement.
Following the event, BP took about $40 billion in charges and set-up a $20 billion fund for victims of the incident, which ranged from family members of those killed to the loss of fishing business in and around the area where the incident occurred in the Gulf of Mexico.
The Morgan Stanley analyst sees BP making the settlement announcement following its fourth-quarter numbers, expected out on February 7th.
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