Remember back in 2009 when Obama lent Petrobras $2 billion-plus. It seems scandal follows Obama. Now Petrobras is under a cloud of dust and scandal. Petrobras Chief Executive Maria das Gracas Sila Foster, plus five other executives, have been asked to step down. The company’s stock rallied on the news before settling 0.2% higher. The resignations raised fresh questions about the future of the company, whose stock is down nearly 60% since early September, wiping out $78 billion of value.
Petrobras is the most indebted oil major and is so strapped for cash that Brazil’s government has indicated it will step in to pay bondholders if Petrobras can’t. Wonder if we will ever get our $2 billion back? The company’s swoon has paralyzed critical sectors of Brazil’s economy, thrown thousands of Brazilians out of work and sparked public outrage at the alleged looting of Brazil’s most important company by some businessmen and politicians.
The fast-moving scandal could prove explosive for President Dilma Rousseff’s ruling Workers’ Party. Indictments of high-ranking politicians are expected in coming weeks, and the opposition is pushing for a fresh congressional corruption probe. It seems Ms. Rousseff was the chairwoman of the Petrobras board when the alleged wrongdoing took place, although she has not been implicated in any wrongdoing at the present time.
Tuesday, August 18, 2009
Obama gives $2 Billion to Brazil for offshore drilling.
We can’t drill our own oil here in America off shore, but Obama is happy to lend $2 billion to Brazil to finance their national oil company. Last I checked I thought this country was broke. Why is Obama who talks up green tech and saving the planet happy to stop America from enjoying its own resources while giving money to Brazil.
You read that headline correctly. Unfortunately, the Obama Administration is financing oil exploration off Brazil.
The U.S. is going to lend billions of dollars to Brazil’s state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil’s Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil’s planning minister confirmed that White House National Security Adviser James Jones met this month with Brazilian officials to talk about the loan.
The U.S. Export-Import Bank tells us it has issued a “preliminary commitment” letter to Petrobras in the amount of $2 billion and has discussed with Brazil the possibility of increasing that amount. Ex-Im Bank says it has not decided whether the money will come in the form of a direct loan or loan guarantees. Either way, this corporate foreign aid may strike some readers as odd, given that the U.S. Treasury seems desperate for cash and Petrobras is one of the largest corporations in the Americas.
How about if we cut back our own government to the constitutional size which is a fraction of the size it is now.