BP stock plummets

By: Alexis Christoforous, CBS News
By: Alexis Christoforous, CBS News

June 10, 2010

NEW YORK---BP is not only gushing oil, but plenty of money, too. The company's stock price is dropping sharply after the Gulf rig explosion. Losses are in the billions.

BP stock traded higher this morning after plunging to a 14-year low on Wednesday (June 9), but BP's shares have steadily dropped more than 50 percent since the oil spill...a $90 billion loss for shareholders.

"There's just too much unknown with the company's ultimate liability here with the spill," said John Eade, president of Argus Research.

BP has spent almost $1.5 billion on the spill and cleanup, but it could cost the company tens of billions. And that doesn't account for thousands of potential lawsuits.

Wall Street investors are also worried because the US government is pressuring BP to stop paying stock dividends to investors.

But BP insists it has enough money to pay for the oil spill. The company has been running a series of ads to reassure the public and its shareholders.

British pension funds depend heavily on BP stock, and British politicians are standing behind the company.

"I think that the best thing now is not to get into too much name-calling and buck passing and attempts to damage the reputation of a great British company," said London Mayor Boris Johnson.

Next week, BP CEO Tony Heyward will defend his company when he testifies before Congress.

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