Feds probe BP on possible insider trading following spill
The U.S. Justice Department is trying to determine whether BP’s gross underestimates of how much oil was spewing into the Gulf of Mexico after the Deepwater Horizon explosion is tied to more than a mere effort to evade the maximum pollution fines.
The Times-Picayune reports that federal investigators have been speaking with several BP officials at their homes recently to question whether execs used non-public info to engage in illegal insider trading in an attempt to manipulate BP’s sharply declining stock following the spill.
BP repeatedly offered lower spill levels than government scientists were reporting during what turned out to be the largest oil spill in American history, which more than angered Gulf Coast residents and federal officials trying to cope with the disaster:
The amount of oil had an immediate impact on efforts to contain the spill and still factors heavily into how much BP and other responsible parties can be fined for polluting the Gulf.
But the difference between what BP officials knew about flow rate and what they were telling others has sparked the interest of Justice Department Criminal Division investigators, according to the sources. Giving false statements to a federal agency is a five-year felony.
There are no public records indicating that BP executives took advantage of inside information to beat the stock market, where BP shares lost more than half their value in the six weeks after the April 28 disclosure that BP’s initial estimate of a 1,000-barrel-a-day spill was wrong. But major BP investors allege in a civil case in Houston that the company low-balled the spill’s effects to artificially buttress the stock price.
Read more on the latest federal investigation here.
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DEC 8 - Maybe that wasn't such a good idea, after all. This post on the Louisiana Oil & Gas Association's site says we're looking at oil prices that are tanking because there's so much oil coming out of the Gulf. Some are even predicting a glut. What's likely to be the result? Lower gas prices, higher refinery profits, and more pressure on the feds to loosen export restrictions.
DEC 8 Here's the latest from blogger Robert Mann, and it's on one of his favorite topics: Bobby Jindal. He's taking a look at Jindal's record and his current maneuvering, which of course is a ploy to position him for a run for the White House. "America Next," Jindal's current big idea, is just as vague about what it is proposing as Jindal usually is, Mann says. And it won't protect him from his "unimaginative record," as Mann describes it.
DEC 8 - Don't know what that is? Then run on over to LaPolitics and read this post by Jeremy Alford, which serves as a history lesson about the famed tonic and it's purveyor, Dudley LeBlanc. It's really a fascinating story and Alford's description of Dudley as an "icon of Louisiana politics and culture" is not an exaggeration.
DEC 8 In this editorial, the Picayune again urges Gov. Jindal to take the Medicaid money. But the piece's exhortation that Jindal "be sensible" is a little misplaced, isn't it? Because Jindal's not being stupid -- well, maybe he is -- but he's following orders from people he believes can get him into the White House. This editorial is engaging in the argument that Jindal is publicly making, without acknowledging what his true motivations are. Somebody send these guys a clue.
DEC 8 Columnist Mark Ballard is writing about the impact of Vance McAllister's defeat of Neil Riser in this post. He starts out talking about how McAllister's more reasonable approach was more attractive to voters than was Riser's hard-line (tea-party-ish) rants. Dan Claitor, a state lege from BR who is expected to run for Congress soon, expressed it best when he said voters aren't looking for candidates who are "throwing temper tantrums when they can't get their way."
DEC 8 It's always gratifying when a Louisiana son makes international headlines. And our son, David "former KKK grand poobah" Duke is back in the news, making us all proud. This (UK) Telegraph story, unearthed by the Dead Pelican, tells us that Duke has been expelled from Italy but is trying to return. The Italians say he is trying to "establish a pan-European, extremist neo-Nazi group in northern Italy." Huh. You don't say.
DEC 9 This is a kind of puzzling post from columnist Jim Beam, in which he discusses a recent appearance by former Gov. Edwin Edwards in Lake Charles. He said he's surprised by EWE's "grasp of current events." Did Jim never meet Slick Eddie? He's no dummy, and for Beam to assume he is -- well, given he covered the man for 50 years, that's the surprise.
DEC 9 A "suspicious package" shut down part of Zachary Sunday, WAFB tells us in this post. The package, which eventually was "rendered safe" (bomb squad lingo for blown up) was found in a storage unit that someone quit paying on. Other cop gear was found in the unit, so it is possible the thing was a training tool, police say. But they leave out the best part: who bought it? Barry, Jarrod or Darrell?
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