President Obama announced Wednesday afternoon, after meeting with BP executives, that the company would put $20 billion into a fund for the victims of the Gulf of Mexico oil spill. But as far as Cramer is concerned, that’s not enough.
The Mad Money host originally had called on BP to post a $20 billion bond for this purpose, but he’s now changed his mind. He thinks $48 billion is a better estimate, considering this spill could take as long as two years to clean up. To put that in perspective, BP North America’s total assets equal $50 billion.
Cramer said President Obama should have called for the $48 billion and threatened BP with the potential loss of the land on which it is presently drilling, especially given the enormous political capital he holds in regards to this issue.
“The president really had all the cards,” Cramer said.
A previous version of this story misstated BP's annual cash flows.
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