Reports are surfacing that BP is finally considering a suspension of its shareholder's dividend, but what could have been done differently to avert the public relations nightmare BP is facing? Two CNBC hosts had some ideas about that, and about what could have happened if BP chose not to play ball.
Jim Cramer and Erin Burnett shared their thoughts on the "Stop Trading" segment of "Street Signs" June 11. According to the "Mad Money" host, Obama could have set a foul precedent for multi-national businesses if BP (NYSE:BP) didn't agree to make some concessions on how it is handling its day-to-day operations in the wake of this ecological crisis.
"I think that this is a, a stock that represents great value but you're dealing with the government," Cramer said. "I saw that Nancy Pelosi, she's the second most powerful person in our country, saying that they shouldn't be paying a dividend. I mean, this is one of those situations where I know, the president's approval ratings are down and what you got to do is you got to go after BP if you're the president. I'm not saying I would do it but I'm saying if I were the president of the United States, BP is public enemy number one and you're not even going to listen to what the British say. You just gotta say, ‘Guys, here's the deal, we're not, we're not going to have any dividends here. And just you know, take it or leave it, partner, because this is a company that needs U.S. ball play."