In a private, closed-door meeting, Obama administration officials and BP executives agreed to the creation of a $20 billion BP escrow fund. The company is expected to set aside money within the BP escrow fund. Those that are damaged by the oil spill will be able to make a claim to this BP escrow fund. Some politicians are wondering if this BP escrow fund is really distracting from the real problem.
Resource for this article: BP Escrow fund – Helpful or hurtful By Personal Money Store
BP escrow fund not a liability cap
Estimates for the damages from the BP oil spill vary from as little as the amount of the BP escrow fund up to $ 100 billion. On the Today Show today, senior Obama adviser David Axelrod assured that “this is not a get-out-of-the-situation-free card.” The Obama administration has already said that if the $ 20 billion BP escrow fund is not enough to pay damages, BP can be responsible for a lot more.
Kenneth Fineburg to administer BP escrow fund
Currently serving as the “pay czar” of TARP fund banks, Kenneth Fineburg is being tapped to administer the BP escrow fund. A lawyer, Kenneth Fineburg has experience in administering disaster escrow funds – he administered the victims’ fund for the September 11, 2001 attacks.
BP escrow fund addresses complaints
The BP escrow fund is, in part, a response to difficulties with BP's claims process. While some residents say they got checks from BP for their damage claims “within days,” others are saying they have yet to see anything. Oil spill victims, when submitting claims to BP, are told they have to provide three years of tax returns.
Will BP escrow fund distract from spill?
A couple of politicians are wondering if the BP escrow fund is really a red herring. In 2009, BP reported $ 5.6 billion in operating profits. However, Governor Haley Barbour of Mississippi has spoken out against the BP escrow fund. She expressed a concern that BP may consider it case closed once they pay into the fund.
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NowPublic.com
ABC News
AP News
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