Thursday, June 24, 2010

Dummies and Risk

I can't figure out under which socionomic category to file this story:

DiNapoli sues BP over investment losses from oil-spill disaster
by Eric Reinhardt
New York State Comptroller Thomas DiNapoli announced today he has hired a law firm to represent the New York State Common Retirement Fund in a class-action lawsuit against London-based BP, p.l.c. (NYSE: BP).

The state-pension fund will seek lead-plaintiff status in the action that stems from BP's explosion and spill at its Deepwater Horizon oil rig in the Gulf of Mexico...

...The fund held more than 19 million shares of BP, valued at more than $1.1 billion, at the time of the explosion April 20, according to DiNapoli. BP's share price has declined by about 50 percent since then...

Should it be under anger, for the legal actions on behalf of a pension fund manager whose guts have turned to ice water as the "value" declines? Under magical thinking for this fund manager who thinks that stocks only go up, that return is not commensurate with risk and everyone lives in a world of magical unicorns and the money fairy defecates 8.5% returns on everyone, every year for all eternity? Or under WTF since we are back to another example of just how insipid, callow and clueless the "best and brightest" that are "in charge" of our financial institutions truly are?

So much to choose from...

h/t Zero Hedge

3 comments:

Greg B said...

I read it as DiNapoli doing heavy-duty CYA and blame throwing. This way he can say to the impoverished pensioners "It's not my fault. It's BP's fault. I even tried to sue them for you."

It steers all the pensioner's anger to this years biggest hate magnet: BP

In a weaselly, slimey way it's kind of a smart move on his part...

Flagg707 said...

I hadn't looked at it like that. Great point - find a scapegoat and keep pointing at him to avoid having folks look too much at you. He's clever if nothing else, I guess...

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