BP

In this latest column I discuss BP as a case study in management failure to maintain a margin of safety on multiple levels. While most of the commentary has focused on the company's shortcuts in its exploration business, BP also was operating on a razor-thin margin in its balance sheet, despite its professed strong cash flows and low leverage.

Quick link to shocking photo. Ran across this while writing a Bloomberg column (about money, not tarballs) and thought it should be shared.

New York Times tonight has a good article discussing the financial impact of possible criminal charges on BP. Click on the box halfway down on the left side "How Much Will BP Really Pay" to go to Room for Debate, the Times' forum of experts on the subject. I wrote an op-ed today as a panelist. Please note this piece went up before the escrow details were announced.

My latest column. A $20B fund, or any capped fund, proposed by Obama or anybody else, makes NO sense. We need to reduce the chance of taxpayers being on the hook to ZERO as long as BP has earnings available to pay for cleanup and claims.