BP in the news again

Finally, the news media and the market started to think the possibility of BP bankruptcy. New York times published an article about BP today to speculate the worst case scenario. I actually pointed this possibility in my blog on May 1 and May 21st. I would like to discuss the the most likely outcome. Since BP is a UK company and the failure of BP will cause panic and market crash in U.K., U.K government probably will negotiate a deal with U.S. on behalf of BP. It will be structured like a tobacco liability deal. BP will pay 10-20 billion dollar a year for next 5-10 years. BP will avoid bankruptcy and U.S. government and legal compensations will be paid.