It is a huge blow for BP says Faulkner. "It will be a smaller company because of this,and it will have lost a great deal of capital that it needs now to invest in future oil exploration."
VOA: standard.2010.07.27
"We think it has growth potential but itneedscapital - we want to build up the value of the enterprise through time, " he said.
Paul Miller of Friedman Billings Ramsey, an investment bank, says a government bad bank can pay more for assets than a private investor because its cost of funds is irrelevant, itneeds no capital and can hold the assets to maturity.