Should BP Cut Dividends to its Shareholders?

Monday, June 14, 2010

What do New York State's pension plan, the Bill and Melinda Gates Foundation, and numerous mutual funds have in common? They are all major shareholders in BP. As reports surfaced over the weekend that President Obama will force BP to set up a $20 billion escrow account for the victims of the oil spill in the Gulf of Mexico, questions are being raised over whether or not BP should pay out a dividend to its shareholders. Investors claim that a suspension of payment will upset financial markets, as many pension funds worldwide have investments in BP. WNYC's Economic Editor Charlie Herman talks about the finding the balance between making an political statement while being fiducially responsible, and the BBC's Russell Padmore reports from BP's board meeting in London.  

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