G20 Presses Germany
Germany continues to hold out as G20 nations ask it to contribute to a larger EU bailout facility. The U.S., China and Japan want to see a greater financial commitment from European countries before they invest more money in the International Monetary Fund that would go to help the eurozone sovereign debt problem. German public opinion is against a greater investment. And the Merkel government thinks the current bailout fund is big enough as long as its weak neighbors embrace more austerity measures. Taken together, these factors mean that Germany is an unlikely source of new bailout capital.
BP’s Settlement Offer
The progress of the case against BP (NYSE: BP) by plaintiffs who claim that they were damaged by the oil leak from the Deepwater Horizon has slowed. BP may offer to agree to a settlement of $14 billion to pay off all claims, as long as it is protected from future litigation. The money would come from its Gulf Coast Claims Facility, which was originally capitalized with $20 billion. Even if a settlement is reached, BP will have to face the federal government in court on charges that it did too little to prevent the catastrophe and should pay billions of dollars in fines.
A Warren Buffett Successor
Warren Buffett said the board of Berkshire Hathaway (NYSE: BRK-A) has picked a successor who will take over as CEO when he is gone. The announcement hardly matters. Buffett said he does not plan to leave. He also refused to disclose the name of the CEO-in-waiting.
Douglas A. McIntyre
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