LONDON — BP’s latest failed attempt to plug the oil spill and news that it faces a criminal investigation sent shares of the London-based oil giant tumbling 15 percent Tuesday in New York. BP shares fell $6.43 to close at $36.52, a 14-month low. The move wiped $20.1 billion off BP’s market capitalization. The stock has lost 40 percent of its value since the Deepwater Horizon drill rig exploded April 20.
The moves were equally stark on the bond side — the cost to insure five-year BP credit against default surged 78 percent, according to CMA Datavision.
Under the Oil Pollution Act, damages are capped at $75 million. Even if Congress retroactively boosts that cap to $10 billion, BP would be on the hook for just $6.5 billion, because it owns 65 percent of the concession.
That cap on damages goes out the window, however, if BP is shown to be negligent. MarketWatch
Investors react
