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Ohio Attorney General Suing British Petroleum Over Losses to State's Pension Plans

It was announced on July 21st Richard Cordray, Attorney General for the State of Ohio, is jockeying to be the lead attorney in a law suit filed against British Petroleum (BP), seeking class-action status. The law suit was filed on behalf of the state's five pension systems, which incurred substantial losses due to the decline in BP stock after the gulf disaster.

"Institutional investors, and the Ohio Funds in particular, have been greatly harmed by BP's alleged misconduct. By forming a partnership between New York and Ohio, we aim to compensate investors for what we believe was securities fraud and effect real change in the way BP and other companies do business," Cordray said.

Let me first and very clearly state that I am not in any way, shape, or form arguing in defense of BP in writing this. What I am arguing for is common sense and personal responsibility. I'm no expert in deep-see drilling, but it would certainly appear to me that it might be a bit risky drilling down several thousand feet in the middle of an ocean or gulf. I may also think remember past catastrophes like the Exxon Valdez--while not a drilling issue--a dirty disaster nonetheless and one that Exxon and Exxon investors paid dearly for.

If investors didn't know that an oil company had material risks involved in deep sea drilling, they're not too smart. Filing a law suit to recover losses because you're not too smart just doesn't sit well with me. I am a participant in the State Teacher's Retirement System of Ohio and an investor in the stock market, so I too was harmed. I guess the difference is--in my biased opinion--I'm not looking for a handout because of it.

The handouts or amounts for damages should be paid to those who are directly affected by the disaster in the gulf. Writing this from Ohio where virtually no natural disaster occurs, I can only image the impact on the local residents, business owners, rig workers, etc. along the gulf. These people's livelihoods will be harmed for a long time to come and some may be so irreparably. These are the people that need money from BP and not those that made a bad investment in hindsight.

Maybe Cordray is trying to make a name for himself....maybe he's trying to get money for Ohio's woefully underfunded pensions...maybe he is on sound legal basis for doing all this. Regardless, I don't think from a common-sense perspective what he is doing is right, and I'm ashamed to be an Ohioan on this day.

While some or many may not agree with my perspective, it is what it is. I don't believe people can go through life pointing fingers at others when things go wrong. You have to look in the mirror and accept responsibility for your decisions. I can only dream how much better we'd be off if more people had this perspective.

Click here for more information on the story.

Kevin Kroskey, CFP, MBA


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