BP (NYSE:BP): Declaring Bankruptcy

Andrew Ross Sorkin, writes that Wall Street is starting to look seriously at BP (NYSE:BP) and their potential to file bankruptcy.

"The idea that BP might one day file for bankruptcy, particularly as part of a merger that would enable it to cardon off it's liabilities from the spill, is starting to percolate on Wall Street. Bankers and lawyers are already sizing up potential deals (and counting their potential fees.) Given the plunge in BP's share prices, the company has lost more than a third of its value since Deepwater Horizon blew. Some bankers and analysts say BP is starting to look like take over bait. The question is, who would buy BP given its enormous potential liabilities," said Sorkin.

Federal Reserve chairman, Ben Bernanke predicts, "we'll have continued recovery but it won't feel terrific." He offers cautious reassurance that the U.S. recovery is on track, despite the turmoil we've seen in the financial markets. "There seems to be a good bit of momentum in consumer spending and investments," says Bernanke.

Although BP isn't verifying or denying weather they are declaring bankruptcy or not, they seem quite confident. Despite the fact they still have yet to contain the fuel spill spewing onto the seabed, have already spent over a billion dollars, and haven't even started on the fuel cleanup, or dealt with the legal claims that are pouring in.