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110-475: In 2018, the group had $ 174 billion in assets, $ 30.8 billion of gross written premiums and approximately 31,000 employees. Its core operating insurance companies are rated "AA" (Very Strong) for financial strength by Standard & Poor's and "A++" (Superior) by A. M. Best with stable outlooks from both agencies. Fitch rates Chubb Limited and its subsidiaries "AA" (Very Strong) for financial strength, "AA−" for issuer default and "A+" for senior debt. Moody's rates

220-540: A $ 5 billion lawsuit: U.S. v. McGraw-Hill Cos et al., U.S. District Court, Central District of California, No. 13-00779. Since it did not charge Fitch and Moody's and because the Department did not give access to evidence, there has been speculation whether the lawsuit may have been in retaliation for S&P's decision to downgrade. On April 15, 2013, the Department of Justice was ordered to grant S&P access to evidence. On November 11, 2011, S&P erroneously announced

330-473: A 125-tonne (280,000 lb) containment dome over the largest leak and piped the oil to a storage vessel. While this technique had worked in shallower water, it failed here when gas combined with cold water to form methane hydrate crystals that blocked the opening at the top of the dome. Pumping heavy drilling fluids into the blowout preventer to restrict the flow of oil before sealing it permanently with cement (" top kill ") also failed. BP then inserted

440-464: A 9% decline. On 2 August 2010, the EPA said dispersants did no more harm to the environment than the oil and that they stopped a large amount of oil from reaching the coast by breaking it down faster. However, some independent scientists and EPA's own experts continue to voice concerns about the approach. Underwater injection of Corexit into the leak may have created the oil plumes which were discovered below

550-594: A chain of commercial technical schools which grew out of the company's employee training program, but the schools were sold for $ 1 to a partnership of private equity firms Great Hill Partners and the High-Tech Institute in 2004. In 2007, Chubb was named the Readers' Choice winner as "Best Admitted Property/Casualty Insurance Company" by Business Insurance . In 2010 Chubb was number five on Chicago Business "Best Places to Work" list. ACE (American Casualty Excess) Limited

660-445: A component used by S&P in assessing an enterprise's overall creditworthiness. S&P updated its management and governance scoring methodology as part of a larger effort to include enterprise risk management analysis in its rating of debt issued by non-financial companies. "Scoring of management and governance is made on a scale of weak, fair, satisfactory or strong, depending on the mix of positive and negative management scores and

770-521: A diversification process that brought the ACE Group of Companies global status. One of the multiple acquisitions made during this time was the global property and casualty business of Cigna Corporation (most significantly the Insurance Company of North America , known as INA), which was purchased for $ 3.45 billion in 1999. In 2004, Evan G. Greenberg became president and CEO of ACE Ltd. In 2004, ACE

880-580: A division of S&P Global that publishes financial research and analysis on stocks , bonds , and commodities . S&P is considered the largest of the Big Three credit-rating agencies, which also include Moody's Ratings and Fitch Ratings . Its head office is located on 55 Water Street in Lower Manhattan , New York City . The company traces its history back to 1860, with the publication by Henry Varnum Poor of History of Railroads and Canals in

990-478: A large oil slick began to spread at the former rig site. The oil flowed for 87 days. BP originally estimated a flow rate of 1,000 to 5,000 barrels per day [bbl/d] (160 to 790 m /d). The Flow Rate Technical Group (FRTG) estimated the initial flow rate was 62,000 bbl/d (9,900 m /d). The total estimated volume of leaked oil approximated 4.9 MMbbl (210,000,000 US gal; 780,000 m ) with plus or minus 10% uncertainty, including oil that

1100-399: A letter to investors, customers, and brokers defending the move. Despite having deep personal connections to Trump, Greenberg claimed "we frankly left our own personal feelings aside" when deciding to issue the bond. Standard %26 Poor%27s S&P Global Ratings (previously Standard & Poor's and informally known as S&P ) is an American credit rating agency (CRA) and

1210-459: A local native set up a network for people to volunteer their assistance in cleaning up beaches. Boat captains were given the opportunity to offer the use of their boats to help clean and prevent the oil from further spreading. To assist with the efforts the captains had to register their ships with the Vessels of Opportunity; however, an issue arose when more boats registered than actually participated in

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1320-653: A majority stake in Siam Commercial Samaggi Insurance PCL from Siam Commercial Bank. Following a subsequent tender offer in June 2014, ACE and its local partner owned 93.03% of the Samaggi. In October 2014, ACE Limited acquired the large commercial property and casualty business of Itaú Unibanco Holding SA. The transaction made ACE the largest property and casualty insurer in Brazil. In April 2015, ACE Limited acquired

1430-460: A replacement blowout preventer was installed. On 16 September 2010, the relief well reached its destination and pumping of cement to seal the well began. On 19 September 2010, National Incident Commander Thad Allen declared the well "effectively dead" and said that it posed no further threat to the Gulf. In May 2010, BP admitted they had "discovered things that were broken in the sub-surface" during

1540-553: A result, some critics have contended that the credit ratings agencies are beholden to these issuers in a conflict of interests and that their ratings are not as objective as they ought to be, due to this "pay to play" model. In 2015, Standard and Poor's paid $ 1.5 billion to the U.S. Justice Department, various state governments, and the California Public Employees' Retirement System to settle lawsuits asserting its inaccurate ratings defrauded investors. In April 2009,

1650-425: A riser insertion tube into the pipe and a stopper-like washer around the tube plugged at the end of the riser and diverted the flow into the insertion tube. The collected gas was flared and oil stored on board the drillship Discoverer Enterprise . Before the tube was removed, it collected 924,000 US gal (22,000 bbl; 3,500 m ) of oil. On 3 June 2010, BP removed the damaged drilling riser from

1760-448: A scale from A-1 to D. Within the A-1 category, it can be designated with a plus sign (+). This indicates that the issuer's commitment to meet its obligation is very strong. Country risk and currency of repayment of the obligor to meet the issue obligation are factored into the credit analysis and reflected in the issue rating. S&P has had a variety of approaches to reflecting its opinion of

1870-417: A scale from AAA to D. Intermediate ratings are offered at each level between AA and CCC (such as BBB+, BBB, and BBB−). For some borrowers issuances, the company may also offer guidance (termed a "credit watch") as to whether it is likely to be upgraded (positive), downgraded (negative) or stable. Investment Grade Non-Investment Grade (also known as speculative-grade) The company rates specific issues on

1980-467: A sponge. Although that method did not remove the oil completely, chemicals called dispersants were used to hasten the oil's degradation to prevent the oil from doing further damage to the marine habitats below the surface water. For the Deep Horizon oil spill, cleanup workers used 1,400,000 US gal (5,300,000 L; 1,200,000 imp gal) of various chemical dispersants to further breakdown

2090-465: A study done in 2013 found that one of the plumes of dispersant-treated oil had reached a shelf 80 mi (130 km) off the Tampa Bay region. According to researchers, there is "some evidence it may have caused lesions in fish caught in that area". First, BP unsuccessfully attempted to close the blowout preventer valves on the wellhead with remotely operated underwater vehicles . Next, it placed

2200-667: A study from Georgia Tech and Universidad Autonoma de Aguascalientes in Environmental Pollution journal reported that Corexit used during the BP oil spill had increased the toxicity of the oil by 52 times. The scientists concluded that "Mixing oil with dispersant increased toxicity to ecosystems" and made the gulf oil spill worse. The three basic approaches for removing the oil from the water were: combustion, offshore filtration, and collection for later processing. USCG said 33,000,000 US gal (120,000 m ) of tainted water

2310-467: A subscription to access. These include Indexology, VIX Views and Housing Views. Credit rating agencies such as S&P have been cited for contributing to the financial crisis of 2007–08 . Credit ratings of AAA (the highest rating available) were given to large portions of even the riskiest pools of loans in the collateralized debt obligation (CDO) market. When the real estate bubble burst in 2007, many loans went bad due to falling housing prices and

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2420-423: A total of 1,074 mi (1,728 km) had been oiled since the spill began. As of December 2012 , 339 mi (546 km) of coastline remain subject to evaluation and/or cleanup operations. The reported 3.19 million barrels of spilled oil was not the only effect of this disaster. A report detailed the release of thousands of tons of hydrocarbon gases (HC) into the atmosphere. Concerns were raised about

2530-630: A weekly investment advisory newsletter for individuals and professional investors, published continuously since 1922. Credit Week is produced by Standard & Poor's Credit Market Services Group. It offers a comprehensive view of the global credit markets, providing credit rating news and analysis. Standard & Poor's offers numerous other editorials, investment commentaries and news updates for financial markets, companies, industries, stocks, bonds, funds, economic outlook and investor education. All publications are available to subscribers. S&P Dow Jones Indices publishes several blogs that do not require

2640-518: The Federal Court of Australia found that: "A reasonably competent ratings agency could not have rated the Rembrandt 2006-3 CPDO AAA in these circumstances"; and "S&P’s rating of AAA of the Rembrandt 2006-2 and 2006-3 CPDO notes was misleading and deceptive and involved the publication of information or statements false in material particulars and otherwise involved negligent misrepresentations to

2750-972: The Intracoastal Waterway and on Pensacola Beach and the Gulf Islands National Seashore . In late June, oil reached Gulf Park Estates , its first appearance in Mississippi. In July, tarballs reached Grand Isle and the shores of Lake Pontchartrain . In September a new wave of oil suddenly coated 16 mi (26 km) of Louisiana coastline and marshes west of the Mississippi River in Plaquemines Parish . In October, weathered oil reached Texas. As of July 2011 , about 491 mi (790 km) of coastline in Louisiana, Mississippi, Alabama and Florida were contaminated by oil and

2860-526: The Louisiana coast. BP was the operator and principal developer of the Macondo Prospect with a 65% share, while 25% was owned by Anadarko Petroleum , and 10% by MOEX Offshore 2007 , a unit of Mitsui . At approximately 7:45 pm CDT , on 20 April 2010, high-pressure methane gas from the well expanded into the marine riser and rose into the drilling rig, where it ignited and exploded, engulfing

2970-560: The SEC of a series of reinsurance transactions, together with the SEC reporting of a further 16 unaffiliated re-insurers. Evan Greenberg said that his company's investigation should be completed within a month. According to Greenberg, contracts appeared "generally structured in a way to provide for appropriate risk transfer and accounted for properly." The Spitzer investigations also triggered civil litigation by policyholders who claim they were victimized by

3080-532: The Standard Statistics Bureau , with the view to providing financial information on non-railroad companies. Instead of an annually published book, Standard Statistics would use 5-by-7-inch cards, allowing for more frequent updates. In 1941, Paul Talbot Babson purchased Poor's Publishing and merged it with Standard Statistics to become Standard & Poor's Corp. In 1966, the company was acquired by The McGraw-Hill Companies , extending McGraw-Hill into

3190-618: The United States Department of Justice settled federal criminal charges, with BP pleading guilty to 11 counts of manslaughter , two misdemeanors , and a felony count of lying to the United States Congress . BP also agreed to four years of government monitoring of its safety practices and ethics, and the Environmental Protection Agency announced that BP would be temporarily banned from new contracts with

3300-589: The "top kill" effort. Oil slicks were reported in March and August 2011, in March and October 2012, and in January 2013. Repeated scientific analyses confirmed that the sheen was a chemical match for oil from the Macondo well. The USCG initially said the oil was too dispersed to recover and posed no threat to the coastline, but later warned BP and Transocean that they might be held financially responsible for cleaning up

3410-617: The Atlantic Companies. Also in 2008, ACE relocated from the Cayman Islands to Zürich , Switzerland. Evan Greenberg described the move as a "natural progression" that would provide ACE with a "better strategic flexibility…and a solid legal and regulatory environment…" The re-domestication was completed in July that year. In 2010, the ACE company ESIS Inc. was hired by BP to process claims made by

Chubb Limited - Misplaced Pages Continue

3520-592: The Chairman and CEO of the new company, while Chubb Chairman and CEO John Finnegan became Executive Vice Chairman for North America External Affairs. The company's board was expanded to 18, with 4 of them coming from Chubb. The new combined company then decided to adopt the Chubb name. The deal received ACE and Chubb shareholder approval and all required regulatory approval, and closed on 14 January 2016. In 2004 New York Attorney General Eliot Spitzer conducted an investigation in

3630-564: The Chubb name in January 2016 after the acquisition was completed. In 1882, Thomas Caldecot Chubb and his son Percy started a marine underwriting business in New York City. They collected $ 1,000 from 100 prominent merchants and focused on insuring ships and cargoes. The Chubb Corporation was incorporated in 1967 and was listed on the New York Stock Exchange in 1984. Beginning in 1970, the corporation owned The Chubb Institute ,

3740-537: The Coast Guard was assured that no journalists were on board. In another example, a CBS News crew was denied access to the oil-covered beaches of the spill area. The CBS crew was told by the authorities, "This is BP's rules, not ours," when trying to film the area. Some members of Congress criticized the restrictions placed on access by journalists. The FAA denied that BP employees or contractors made decisions on flights and access, saying those decisions were made by

3850-543: The EC said in its statement of objections which lays the groundwork for an adverse finding against S&P. "The (numbers) are indispensable for a number of operations that financial institutions carry out – for instance, reporting to authorities or clearing and settlement – and cannot be substituted.” S&P has run the CUSIP Service Bureau , the only International Securities Identification Number (ISIN) issuer in

3960-624: The EPA that Corexit use continued after that date and a GAP investigation stated that "[a] majority of GAP witnesses cited indications that Corexit was used after [July 2010]". According to a NALCO manual obtained by GAP , Corexit 9527 is an "eye and skin irritant. Repeated or excessive exposure ... may cause injury to red blood cells (hemolysis), kidney or the liver". The manual adds: "Excessive exposure may cause central nervous system effects, nausea, vomiting, anesthetic or narcotic effects". It advises, "Do not get in eyes, on skin, on clothing", and "Wear suitable protective clothing". For Corexit 9500,

4070-536: The FAA and Coast Guard. The FAA acknowledged that media access was limited to hired planes or helicopters, but was arranged through the Coast Guard. The Coast Guard and BP denied having a policy of restricting journalists; they noted that members of the media had been embedded with the authorities and allowed to cover response efforts since the beginning of the effort, with more than 400 embeds aboard boats and aircraft to date. They also said that they wanted to provide access to

4180-452: The Fireman's Fund high net-worth personal lines insurance business in the U.S. from Allianz for $ 365 million. ACE Private Risk Services is one of the largest high net worth insurers in the U.S. On 1 September 2020, Chubb announced the introduction of the latest update of its Enterprise Guard Plus product for the emerging needs of Hong Kong business insurance. In February 2021, Chubb Limited and

4290-578: The Gulf. The report led by the Department of the Interior and the NOAA said that "75% [of oil] has been cleaned up by Man or Mother Nature"; however, only about 25% of released oil was collected or removed while about 75% of oil remained in the environment in one form or another. In 2012, Markus Huettel, a benthic ecologist at Florida State University, maintained that while much of BP's oil was degraded or evaporated, at least 60% remains unaccounted for. In May 2010,

4400-488: The U.S. companies "A1" and the unsecured loan notes "A3". On 1 July 2015, property & casualty insurer Ace Limited (ACE) announced that it would acquire the original Chubb Corporation for $ 28.3 billion in cash and stock. ACE stated that Chubb's current headquarters in Warren, New Jersey , will have a substantial portion of the headquarters function for the combined company's North American Division. The combined company adopted

4510-602: The US, on behalf of the American Bankers Association . In its formal statement of objections, the EC alleged "that S&P is abusing this monopoly position by enforcing the payment of licence fees for the use of US ISINs by (a) banks and other financial services providers in the EEA and (b) information service providers in the EEA." It claims that comparable agencies elsewhere in the world either do not charge fees at all, or do so on

Chubb Limited - Misplaced Pages Continue

4620-448: The USCG conducted a subsea survey; no oil coming from the wells or the wreckage was found and its source remains unknown. In addition, a white, milky substance was observed seeping from the wreckage. According to BP and the USCG, it is "not oil and it's not harmful." In January 2013, BP said that they were continuing to investigate possible sources of the oil sheen. Chemical data implied that

4730-537: The United States . This book compiled comprehensive information about the financial and operational state of U.S. railroad companies. In 1868, Henry Varnum Poor established H.V. and H.W. Poor Co. with his son, Henry William Poor , and published two annually updated hardback guidebooks, Poor's Manual of the Railroads of the United States and Poor's Directory of Railway Officials . In 1906, Luther Lee Blake founded

4840-476: The United States government. BP and the Department of Justice agreed to a record-setting $ 4.525 billion in fines and other payments. As of 2018 , cleanup costs, charges and penalties had cost the company more than $ 65 billion. In September 2014, a United States District Court judge ruled that BP was primarily responsible for the oil spill because of its gross negligence and reckless conduct. In April 2016, BP agreed to pay $ 20.8 billion in fines,

4950-654: The White House advisory committee for trade policy and negotiations. When Chubb announced the securing of the bond, they claimed that this would be the only bond secured as Trump has another $ 454 million bond pending for his New York civil fraud case. On 18 March 2024, Trump's lawyers notified the Appellate Division of Manhattan Supreme Court that he was unable to secure a bond for the civil fraud case, seeming to confirm Chubb's position on not underwriting additional bonds for Trump. On 13 March 2024, CEO Evan Greenberg issued

5060-595: The World Health Organization announced the roll out of a no-fault compensation scheme for COVID-19 vaccinations for low and middle-income countries. On 1 July 2015, ACE announced that it would acquire Chubb Corporation for $ 28.3 billion in cash and ACE stock. Upon completion, ACE shareholders held 70% while Chubb shareholders got 30% of the new combined company. The new company was to be based in Zürich, where ACE Limited's headquarters were. Evan Greenberg of ACE became

5170-530: The amount collected in 2012. Oil continued to be found as far from the Macondo site as the waters off the Florida Panhandle and Tampa Bay , where scientists said the oil and dispersant mixture is embedded in the sand . In April 2013, it was reported that dolphins and other marine life continued to die in record numbers with infant dolphins dying at six times the normal rate. One study released in 2014 reported that tuna and amberjack exposed to oil from

5280-449: The appearance of underwater, horizontally-extended plumes of dissolved oil. Researchers concluded that deep plumes of dissolved oil and gas would likely remain confined to the northern Gulf of Mexico and that the peak impact on dissolved oxygen would be delayed and long-lasting. Two weeks after the wellhead was capped on 15 July 2010, the surface oil appeared to have dissipated, while an unknown amount of subsurface oil remained. Estimates of

5390-546: The basis of distribution cost, rather than usage. Deepwater Horizon oil spill The Deepwater Horizon oil spill (also referred to as the " BP oil spill ") was an environmental disaster which began on 20 April 2010, off the coast of the United States in the Gulf of Mexico on the BP -operated Macondo Prospect , considered the largest marine oil spill in the history of

5500-408: The bid rigging and commission schemes. On 8 March 2024, Federal Insurance Company, part of The Chubb Corporation, posted a $ 91.63 million bond for Donald Trump in the E. Jean Carroll v. Donald J. Trump case. Despite an estimated net worth of over $ 2 billion, Trump needed a cash bond posted by Chubb in order to secure his appeal. While President, Trump appointed Chubb CEO Evan G. Greenberg to

5610-457: The booms would threaten wildlife. For a time, a group called Matter of Trust, citing insufficient availability of manufactured oil absorption booms, campaigned to encourage hair salons, dog groomers and sheep farmers to donate hair, fur and wool clippings, stuffed in pantyhose or tights, to help contain oil near impacted shores, a technique dating back to the Exxon Valdez disaster. The spill

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5720-592: The class of potential investors in Australia, which included Local Government Financial Services Pty Ltd and the councils, because by the AAA rating there was conveyed a representation that in S&;P’s opinion the capacity of the notes to meet all financial obligations was “extremely strong” and a representation that S&P had reached this opinion based on reasonable grounds and as the result of an exercise of reasonable care when neither

5830-424: The clean-up efforts – only a third of the registered boats. Many local supporters were disappointed with BP's slow response, prompting the formation of The Florida Key Environmental Coalition. This coalition gained significant influence in the clean-up of the oil spill to try to gain some control over the situation. Containment booms stretching over 4,200,000 ft (1,300 km) were deployed, either to corral

5940-425: The company assumed management of Corporate Officers & Directors Assurance Limited (CODA), expanding ACE Bermuda's product line. Walter Scott became Chairman, President, and CEO of ACE in 1990 and saw the company listed on the New York Stock Exchange in 1993. Brian Duperreault succeeded Scott in 1994 as Chairman, President & CEO and worked for the next ten years as ACE went through a series of acquisitions and

6050-470: The company called for "new faces" in the Irish government , which was seen as interfering in the democratic process. In a subsequent statement they said they were "misunderstood". S&P acknowledged making a US$ 2 trillion error in its justification for downgrading the credit rating of the United States in 2011, but stated that it "had no impact on the rating decision". In November 2012, Judge Jayne Jagot of

6160-603: The consumer than the bid offered by the insurance company paying the highest commissions. As part of an $ 80 million settlement that abated further inquiry, ACE signed an Assurance of Discontinuance in which they acknowledged their prior conduct and agreed to alter their business practices. Evan Greenberg himself admitted no fault in Spitzer's allegations although a junior executive did plead guilty to criminal charges. Spitzer's insurance industry probe additionally looked in early 2005 into ACE Ltd's subsidiary ACE Tempest Re's reporting to

6270-408: The containment cap was removed to replace it with a better-fitting cap ("Top Hat Number 10"). Mud and cement were later pumped in through the top of the well to reduce the pressure inside it (which did not work either). A final device was created to attach a chamber of larger diameter than the flowing pipe with a flange that bolted to the top of the blowout preventer and a manual valve set to close off

6380-562: The cut of France's triple-A rating (AAA). French leaders said that the error was inexcusable and called for even more regulation of private credit rating agencies. On January 13, 2012, S&P truly cut France's AAA rating, lowering it to AA+. This was the first time since 1975 that Europe's second-biggest economy, France, had been downgraded to AA+. The same day, S&P downgraded the rating of eight other European countries: Austria , Spain , Italy , Portugal , Malta , Slovenia , Slovakia and Cyprus . The company publishes The Outlook ,

6490-604: The digestion of the oil by microbes but conflicting results have been reported on this in the context of the Deepwater Horizon oil spill. Mixing dispersants with oil at the wellhead would keep some oil below the surface and, in theory, allow microbes to digest the oil before it reached the surface. Various risks were identified and evaluated, in particular, that an increase in microbial activity might reduce subsea oxygen levels, threatening fish and other animals. Several studies suggest that microbes successfully consumed part of

6600-404: The dispersants add to the toxicity of a spill, increasing the threat to sea turtles and bluefin tuna . The dangers are even greater when poured into the source of a spill, because they are picked up by the current and wash through the Gulf. According to BP and federal officials, dispersant use stopped after the cap was in place; however, marine toxicologist Riki Ott wrote in an open letter to

6710-463: The error "had no impact on the rating decision" and adding: In taking a longer term horizon of 10 years, the U.S. net general government debt level with the current assumptions would be $ 20.1 trillion (85% of 2021 GDP). With the original assumptions, the debt level was projected to be $ 22.1 trillion (93% of 2021 GDP). In 2013, the Justice Department charged Standard & Poor's with fraud in

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6820-511: The existence and severity of governance deficiencies." On August 5, 2011, following enactment of the Budget Control Act of 2011 , S&P lowered the US's sovereign long-term credit rating from AAA to AA+. The press release sent with the decision said, in part: The United States Department of the Treasury , which had first called S&P's attention to its $ 2 trillion error in calculating

6930-436: The field of financial information services. As a credit rating agency (CRA), the company issues credit ratings for the debt of public and private companies, and public borrowers such as governments, governmental agencies, and cities. It is one of several CRAs that have been designated a nationally recognized statistical rating organization (NRSRO) by the U.S. Securities and Exchange Commission . S&P rates borrowers on

7040-447: The flow once attached. On 15 July, the device was secured and time was taken closing the valves to ensure the attachment under increasing pressure until the valves were closed completing the temporary measures. Transocean's Development Driller III started drilling a first relief well on 2 May 2010. GSF Development Driller II started drilling a second relief on 16 May 2010. On 3 August 2010, first test oil and then drilling mud

7150-477: The flow, the well was declared sealed on 19 September 2010. Reports in early 2012 indicated that the well site was still leaking. The Deepwater Horizon oil spill is regarded as one of the largest environmental disasters in world history. A massive response ensued to protect beaches, wetlands and estuaries from the spreading oil utilizing skimmer ships, floating booms , controlled burns and 1,840,000 US gal (7,000 m ) of oil dispersant . Due to

7260-475: The inability of bad creditors to refinance. Investors who had trusted the AAA rating to mean that CDO were low-risk had purchased large amounts that later experienced staggering drops in value or could not be sold at any price . For example, institutional investors lost $ 125 million on $ 340.7 million worth of CDOs issued by Credit Suisse Group , despite being rated AAA by S&P. Companies pay S&P, Moody's, and Fitch to rate their debt issues. As

7370-495: The information while maintaining safety. On 15 April 2014, BP announced that cleanup along the coast was substantially complete, while the United States Coast Guard work continued using physical barriers such as floating booms, the cleanup workers' objective was to keep the oil from spreading any further. They used skimmer boats to remove a majority of the oil and they used sorbents to absorb any remnant of oil like

7480-510: The insurance industry. ACE, American International Group (AIG), Marsh & McLennan , and other large insurers and brokerages were named in Spitzer's investigation for possibly participating in questionable insurance practices including the payment of contingent commissions, bid-rigging, price-fixing, and improper accounting. Spitzer asserted that contingent commissions contributed to a widespread practice of "bid-rigging" where brokers solicited fake bids with deliberately less favorable terms for

7590-469: The largest environmental damage settlement in United States history. Deepwater Horizon was a 10-year-old semi-submersible, mobile, floating , dynamically positioned drilling rig that could operate in waters up to 10,000 ft (3,000 m) deep. Built by South Korean company Hyundai Heavy Industries and owned by Transocean , the rig operated under the Marshallese flag of convenience , and

7700-493: The manual advised, "Do not get in eyes, on skin, on clothing", "Avoid breathing vapor", and "Wear suitable protective clothing". According to FOIA requests obtained by GAP, neither the protective gear nor the manual were distributed to Gulf oil spill cleanup workers. Corexit EC9500A and Corexit EC9527A were the principal variants. The two formulations are neither the least toxic, nor the most effective, among EPA's approved dispersants, but BP said it chose to use Corexit because it

7810-417: The months-long spill, along with adverse effects from the response and cleanup activities, extensive damage to marine and wildlife habitats and fishing and tourism industries was reported. In Louisiana , oil cleanup crews worked four days a week on 55 mi (89 km) of Louisiana shoreline throughout 2013. 4,900,000 lb (2,200 t) of oily material was removed from the beaches in 2013, over double

7920-410: The new oil. USGS director Marcia McNutt stated that the riser pipe could hold at most 1,000 bbl (160 m ) because it is open on both ends, making it unlikely to hold the amount of oil being observed. In October 2012, BP reported that they had found and plugged leaking oil from the failed containment dome, now abandoned about 1,500 ft (460 m) from the main well. In December 2012,

8030-417: The oil or as barriers to protect marshes, mangroves, shrimp/crab/oyster ranches or other ecologically sensitive areas. Booms extend 18–48 in (0.46–1.22 m) above and below the water surface and were effective only in relatively calm and slow-moving waters. Including one-time use sorbent booms, a total of 13,300,000 ft (4,100 km) of booms were deployed. Booms were criticized for washing up on

8140-501: The oil. The state of Louisiana received funding by BP to do regular testing of fish, shellfish, water, and sand. Initial testing regularly showed detectable levels of dioctyl sodium sulfosuccinate , a chemical used in the clean up. Testing over 2019 reported by GulfSource.org, for the pollutants tested have not produced results. Due to the Deepwater Horizon spill, marine life was suffering. Thousands of animals were visibly covered in oil. The U.S. Fish and Wildlife Service, working with

8250-410: The oil. By mid-September, other research claimed that microbes mainly digested natural gas rather than oil. David L. Valentine, a professor of microbial geochemistry at UC Santa Barbara , said that the capability of microbes to break down the leaked oil had been greatly exaggerated. However, biogeochemist Chris Reddy said natural microorganisms are a big reason why the oil spill in the Gulf of Mexico

8360-483: The operations. Local and federal authorities citing BP's authority denied access to members of the press attempting to document the spill from the air, from boats, and on the ground, blocking access to areas that were open to the public. In some cases photographers were granted access only with BP officials escorting them on BP-contracted boats and aircraft. In one example, the U.S. Coast Guard stopped Jean-Michel Cousteau 's boat and allowed it to proceed only after

8470-473: The petroleum industry and estimated to be 8 to 31 percent larger in volume than the previous largest, the Ixtoc I oil spill , also in the Gulf of Mexico. Caused in the aftermath of a blowout and explosion on the Deepwater Horizon oil platform , the United States federal government estimated the total discharge at 4.9 MMbbl (210,000,000 US gal; 780,000 m ). After several failed efforts to contain

8580-407: The platform. Eleven missing workers were never found despite a three-day U.S. Coast Guard (USCG) search operation and are believed to have died in the explosion. Ninety-four crew members were rescued by lifeboat or helicopter, 17 of whom were treated for injuries. The Deepwater Horizon sank on the morning of 22 April 2010. The oil leak was discovered on the afternoon of 22 April 2010 when

8690-412: The product. Although usage of dispersants was described as "the most effective and fast moving tool for minimizing shoreline impact", the approach continues to be investigated. A 2011 analysis conducted by Earthjustice and Toxipedia showed that the dispersant could contain cancer-causing agents, hazardous toxins and endocrine-disrupting chemicals. Environmental scientists expressed concerns that

8800-411: The project. By 3 October 2012, federal response costs amounted to $ 850 million, mostly reimbursed by BP. As of January 2013 , 935 personnel were still involved. By that time cleanup had cost BP over $ 14 billion. It was estimated with plus-or-minus 10% uncertainty that 4.9 MMbbl (780,000 m ) of oil was released from the well; 4.1 MMbbl (650,000 m ) of oil went into

8910-424: The relative strength of a company's corporate governance practices. Corporate governance serves as investor protection against potential governance-related losses of value, or failure to create value. S&P developed criteria and methodology for assessing corporate governance. It started issuing Corporate Governance Scores (CGS) in 2000. CGS assessed companies' corporate governance practices. They were assigned at

9020-476: The released amount is not enough to pose an added cancer risk to workers and coastal residents, while a second research team concluded that there was only a small added risk. Oil was collected from water by using skimmers . In total, 2,063 various skimmers were used. For offshore, more than 60 open-water skimmers were deployed, including 12 purpose-built vehicles. EPA regulations prohibited skimmers that left more than 15 parts per million (ppm) of oil in

9130-833: The request of the company being assessed, were non-public (although companies were free to disclose them to the public and sometimes did) and were limited to public U.S. corporations. In 2005, S&P stopped issuing CGS. S&P's Governance, Accountability, Management Metrics and Analysis (GAMMA) scores were designed for equity investors in emerging markets and focused on non-financial-risk assessment, and in particular, assessment of corporate governance risk. S&P discontinued providing stand-alone governance scores in 2011, "while continuing to incorporate governance analysis in global and local scale credit ratings". In November 2012, S&P published its criteria for evaluating insurers and non-financial enterprises' management and governance credit factors. These scores are not standalone, but rather

9240-456: The residual ranged from a 2010 NOAA report that claimed about half of the oil remained below the surface to independent estimates of up to 75%. That means over 100 × 10 ^  US gal (380 Ml) (2.4 million barrels) remained in the Gulf. As of January 2011 , tar balls, oil sheen trails, fouled wetlands marsh grass and coastal sands were still evident. Subsurface oil remained offshore and in fine silts. In April 2012, oil

9350-709: The response effort. All flights in the operations' area were prohibited except flight authorized by air traffic control ; routine flights supporting offshore oil operations; federal, state, local and military flight operations supporting spill response; and air ambulance and law enforcement operations. Exceptions for these restrictions were granted on a case-by-case basis dependent on safety issues, operational requirements, weather conditions, and traffic volume. No flights, except aircraft conducting aerial chemical dispersing operations, or for landing and takeoff, were allowed below 1,000 m (3,300 ft). Notwithstanding restrictions, there were 800 to 1,000 flights per day during

9460-568: The response. The first video images were released on 12 May, and further video images were released by members of Congress who had been given access to them by BP. During the spill response operations, at the request of the Coast Guard, the Federal Aviation Administration (FAA) implemented a 900 sq mi (2,300 km ) temporary flight restriction zone over the operations area. Restrictions were to prevent civilian air traffic from interfering with aircraft assisting

9570-464: The shore with the oil, allowing oil to escape above or below the boom, and for ineffectiveness in more than three- to four-foot (90–120 cm) waves. The Louisiana barrier island plan was developed to construct barrier islands to protect the coast of Louisiana. The plan was criticised for its expense and poor results. Critics allege that the decision to pursue the project was political with little scientific input. The EPA expressed concern that

9680-473: The spill developed deformities of the heart and other organs which would be expected to be fatal or at least life-shortening; another study found that cardiotoxicity might have been widespread in animal life exposed to the spill. Numerous investigations explored the causes of the explosion and record-setting spill. The United States Government report, published in September 2011, pointed to defective cement on

9790-430: The substance might be residual oil leaking from the wreckage. If that proves to be the case, the sheen can be expected to eventually disappear. Another possibility is that it is formation oil escaping from the subsurface, using the Macondo well casing as flow conduit, possibly intersecting a naturally occurring fault, and then following that to escape at the surface some distance from the wellhead. If it proves to be oil from

9900-413: The subsurface, then that could indicate the possibility of an indefinite release of oil. The oil slick was comparable in size to naturally occurring oil seeps and was not large enough to pose an immediate threat to wildlife. The fundamental strategies for addressing the spill were containment, dispersal and removal. In summer 2010, approximately 47,000 people and 7,000 vessels were involved in

10010-438: The surface. Because the dispersants were applied at depth, much of the oil never rose to the surface. One plume was 22 mi (35 km) long, more than 1 mi (1,600 m) wide and 650 ft (200 m) deep. In a major study on the plume, experts were most concerned about the slow pace at which the oil was breaking down in the cold, 40 °F (4 °C) water at depths of 3,000 ft (900 m). In late 2012,

10120-519: The ten-year deficit reduction under the Budget Control Act, commented, "The magnitude of this mistake – and the haste with which S&P changed its principal rationale for action when presented with this error – raise fundamental questions about the credibility and integrity of S&P's ratings action." The following day, S&P acknowledged in writing the US$ 2 trillion error in its calculations, saying

10230-425: The top of the blowout preventer and covered the pipe by the cap which connected it to another riser. On 16 June, a second containment system connected directly to the blowout preventer began carrying oil and gas to service vessels, where it was consumed in a clean-burning system. The United States government's estimates suggested the cap and other equipment were capturing less than half of the leaking oil. On 10 July,

10340-800: The victims of the Deepwater Horizon oil spill . In 2010, ACE Limited purchased Rain and Hail, LLC for $ 1.1 billion. Rain and Hail Insurance Service, headquartered in Johnston, Iowa , is an industry leader in crop insurance in the United States. ACE Limited also acquired the Hong Kong and Korea life insurance operations of New York Life. In 2011, ACE Limited purchased agribusiness insurer Penn Millers. In 2012, they purchased Indonesian insurer Asuransi Jaya Proteksi. In 2013, they purchased Mexican Surety Lines Company Fianzas Monterrey and Mexican Personal Lines Insurer ABA Seguros. In April 2014, ACE Limited acquired

10450-451: The water. Many large-scale skimmers exceeded the limit. Due to use of Corexit , the oil was too dispersed to collect, according to a spokesperson for shipowner TMT . In mid-June 2010, BP ordered 32 machines that separate oil and water , with each machine capable of extracting up to 2,000 bbl/d (320 m /d). After one week of testing, BP began to proceed and, by 28 June, had removed 890,000 bbl (141,000 m ). After

10560-452: The well was capped, the cleanup of shore became the main task of the response works. Two main types of affected coast were sandy beaches and marshes . On beaches, the main techniques were sifting sand, removing tar balls, and digging out tar mats manually or by using mechanical devices. For marshes, techniques such as vacuum and pumping, low-pressure flush, vegetation cutting, and bioremediation were used. Dispersants are said to facilitate

10670-451: The well, faulting mostly BP , but also rig operator Transocean and contractor Halliburton . Earlier in 2011, a White House commission likewise blamed BP and its partners for a series of cost-cutting decisions and an inadequate safety system, but also concluded that the spill resulted from "systemic" root causes and "absent significant reform in both industry practices and government policies, might well recur". In November 2012, BP and

10780-414: Was also investigated by New York Attorney General Eliot Spitzer for participating in a bid rigging and price fixing scheme with insurance broker Marsh & McLennan . In 2008, ACE purchased the accident and health insurance provider Combined Insurance Company of America (founded by W. Clement Stone in 1919) from Aon Corporation for $ 2.56 billion and the high-net-worth personal lines business of

10890-490: Was also notable for the volume of Corexit oil dispersant used and for application methods that were "purely experimental." Altogether, 1.84 × 10 ^  US gal (7,000 m ) of dispersants were used; of this, 771,000 US gal (2,920 m ) were released at the wellhead. Subsea injection had never previously been tried but, due to the spill's unprecedented nature, BP, together with USCG and EPA, decided to use it. Over 400 sorties were flown to release

11000-790: Was available the week of the rig explosion. On 19 May, the EPA gave BP 24 hours to choose less toxic alternatives to Corexit from the National Contingency Plan Product Schedule and begin applying them within 72 hours of EPA approval or provide a detailed reasoning why no approved products met the standards. On 20 May, BP determined that none of the alternative products met all three criteria of availability, non-toxicity and effectiveness. On 24 May, EPA Administrator Lisa P. Jackson ordered EPA to conduct its own evaluation of alternatives and ordered BP to reduce dispersant use by 75%. BP reduced Corexit use by 25,689 to 23,250 US gal (97,240 to 88,010 L) per day,

11110-550: Was chartered to BP from March 2008 to September 2013. It was drilling a deep exploratory well, 18,360 ft (5,600 m) below sea level, in approximately 5,100 ft (1,600 m) of water. The well is situated in the Macondo Prospect in Mississippi Canyon Block 253 (MC253) of the Gulf of Mexico , in the United States' exclusive economic zone . The Macondo well is found roughly 41 mi (66 km) off

11220-452: Was collected or burned before it could enter the Gulf waters. According to the satellite images, the spill directly affected 70,000 sq mi (180,000 km ) of ocean, comparable to the area of Oklahoma . By early June 2010, oil had washed up on 125 mi (201 km) of Louisiana's coast and along the Mississippi , Florida , and Alabama coastlines. Oil sludge appeared in

11330-535: Was collected, making it the world's largest accidental spill. BP challenged the higher figure, saying that the government overestimated the prefaced volume. Internal emails released in 2013 showed that one BP employee had estimates that matched those of the FRTG, and shared the data with supervisors, but BP continued with their lower number. The company argued that government figures do not reflect over 810,000 bbl (34 million US gal; 129,000 m ) of oil that

11440-689: Was established in 1985 in response to the U.S. liability insurance crisis of the mid-1980s. It was formed with the assistance of insurance broker Marsh & McLennan and funded by a group of 34 U.S. companies seeking difficult-to-obtain Excess Liability and Directors and Officers (D&O) insurance coverage. That year, ACE and its Bermuda subsidiary , incorporated in the Cayman Islands and headquartered in Hamilton, Bermuda , wrote its first insurance policy with John Cox as its president and CEO. In 1987

11550-631: Was not far worse. Genetically modified Alcanivorax borkumensis was added to the waters to speed digestion. The delivery method of microbes to oil patches was proposed by the Russian Research and Development Institute of Ecology and the Sustainable Use of Natural Resources . On 18 May 2010, BP was designated the lead "Responsible Party" under the Oil Pollution Act of 1990 , which meant that BP had operational authority in coordinating

11660-406: Was pumped at a slow rate of approximately 2 bbl (320 L) per minute into the well-head. Pumping continued for eight hours, at the end of which the well was declared to be "in a static condition." On 4 August 2010, BP began pumping cement from the top, sealing that part of the flow channel permanently. On 3 September 2010, the 300- ton failed blowout preventer was removed from the well and

11770-679: Was recovered, including 5,000,000 US gal (19,000 m ) of oil. BP said 826,800 bbl (131,450 m ) had been recovered or flared. It is calculated that about 5% of leaked oil was burned at the surface and 3% was skimmed. On the most demanding day, 47,849 people were assigned on the response works and over 6,000 Marine vessels, 82 helicopters, and 20 fixed-wing aircraft were involved. From April to mid-July 2010, 411 controlled in-situ fires remediated approximately 265,000 bbl (11.1 million US gal; 42,100 m ). The fires released small amounts of toxins , including cancer-causing dioxins . According to EPA 's report,

11880-454: Was removed from the Louisiana coast. Although only "minute" quantities of oil continued to wash up in 2013, patches of tar balls were still being reported almost every day from Alabama and Florida Panhandle beaches. Regular cleanup patrols were no longer considered justified but cleanup was being conducted on an as-needed basis, in response to public reports. It was first thought that oil had not reached as far as Tampa Bay, Florida ; however,

11990-454: Was still found along as much as 200 mi (320 km) of Louisiana coastline and tar balls continued to wash up on the barrier islands. In 2013, some scientists at the Gulf of Mexico Oil Spill and Ecosystem Science Conference said that as much as one-third of the oil may have mixed with deep ocean sediments , where it risks damage to ecosystems and commercial fisheries. In 2013, more than 4,600,000 lb (2,100 t) of "oiled material"

12100-668: Was true and S&P also knew not to be true at the time made." In conclusion, Jagot found Standard & Poor's to be jointly liable along with ABN Amro and Local Government Financial Services Pty Ltd. In November 2009, ten months after launching an investigation, the European Commission (EC) formally charged S&P with abusing its position as the sole provider of international securities identification codes for United States of America securities by requiring European financial firms and data vendors to pay licensing fees for their use. "This behavior amounts to unfair pricing,"

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