BP Agrees To Put $20B In Escrow Account For Spill Claims
30 replies, posted
[url=http://tpmlivewire.talkingpointsmemo.com/2010/06/nyt-bp-agrees-to-put-20b-in-escrow-account-for-spill-claims.php?ref=fpb]TPM[/url]
[release]BP has agreed to place about $20 billion in an escrow account to be used to pay damage claims resulting from the Gulf Coast oil spill, The New York Times is reporting.
CNN and the AP have also confirmed the deal.
The Times is also reporting that the fund will be overseen by Kenneth Feinberg -- the pay czar charged with overseeing top Wall Street salaries under TARP. Feinberg also oversaw the 9/11 victims compensation fund.
BP executives met with President Obama at the White House today. Before the meeting, Bloomberg reported that the administration and BP hadn't yet reached a deal on the escrow account.
According to the Times, BP likely won't be in any rush to deposit $20 billion in the escrow account anytime soon: The deal's "preliminary terms would give BP several years to deposit the full amount into the fund so it could better manage cash flow, maintain its financial viability and not scare off investors."
The White House also released details this afternoon on how the claims will work. Feinberg will serve as "independent claims administrator," and a panel of three judges will hear any appeals of his decisions on claims of individuals and businesses harmed by the spill. Government agencies will still make claims directly to BP.
BP will put $5 billion a year into the account in each of the next four years, beginning in 2010. In the meantime, it will set aside $20 billion in U.S. assets to assure its commitments.
And the damages may not stop at $20 billion: "This account is neither a floor nor a ceiling on liability," the White House announced.
And it sounds like claimants will still be able to sue BP, even if they do get payouts from this account: "Dissatisfied claimants maintain all current rights under law, including the right to go to court or to the Oil Spill Liability Trust Fund."
BP will also contribute $100 million to a foundation supporting unemployed oil right workers.
Editor's Note: This post has been added to since it was first published.
[/release]
rate me hearts
[QUOTE=Lambeth;22669695]
rate me hearts[/QUOTE]
Why?
I'm gonna carry my mouse to the right from the heart and give you a tool.
[QUOTE=Craptasket;22669716]Why?[/QUOTE]
nice thing for BP to do?
[QUOTE=Lambeth;22669731]nice thing for BP to do?[/QUOTE]
Itty bitty portion of their profits that will barely be useful in cleaning up the spill/rehabilitating the environment.
yeah it's so nice
[QUOTE=Craptasket;22669716]Why?[/QUOTE]
Because BP did something...polite/nice/friendly?
[editline]04:17PM[/editline]
[QUOTE=Guardian-Angel;22669797]Itty bitty portion of their profits that will barely be useful in cleaning up the spill/rehabilitating the environment.
yeah it's so nice[/QUOTE]
Wow, so unless they fix it 100% they're still total assholes?
At this point the oil spill has transcended any sort of monetary amount. The damage that has been done to the Gulf's ecosystem is almost unfixable.
[QUOTE=Gummylamb;22669800]Wow, so unless they fix it 100% they're still total assholes?[/QUOTE]
Uhhh yeah. It was completely their fault to begin with, they consciously cut down their spending on maintenance and safety, and now their reckless greed has led us into what you may as well consider a catastrophe. It was THEIR fault, and THEY should be the ones who pay out of pocket for this fuck-up.
Oh man, they've been fucked
add a few another 0 in there and then come back to us trying to look good
[QUOTE=matark;22669956]At this point the oil spill has transcended any sort of monetary amount. The damage that has been done to the Gulf's ecosystem is almost unfixable.[/QUOTE]
Don't be stupid, environmental damage is always repaired it just takes time to recover.
[editline]12:46AM[/editline]
[QUOTE=Guardian-Angel;22670025]Uhhh yeah. It was completely their fault to begin with, they consciously cut down their spending on maintenance and safety, and now their reckless greed has led us into what you may as well consider a catastrophe. It was THEIR fault, and THEY should be the ones who pay out of pocket for this fuck-up.[/QUOTE]
And they are?
Did you not see? They've just put $20B into an account along with no cap on costs.
BP have acted quite well, obviously people will criticize them because they haven't found the magical cure for the problem but they've done what they can.
Its CEO moved to the Gulf to personally oversee operations. It mobilized a fleet of ships and planes to disperse the oil, flew in experts from around the world, initiated an internal investigation, and more. It's not like they've done nothing and fobbed it off.
time to buy bp stocks
[QUOTE=BAZ;22670303]Don't be stupid, environmental damage is always repaired it just takes time to recover.
[editline]12:46AM[/editline]
And they are?
Did you not see? They've just put $20B into an account along with no cap on costs.
BP have acted quite well, obviously people will criticize them because they haven't found the magical cure for the problem but they've done what they can.
Its CEO moved to the Gulf to personally oversee operations. It mobilized a fleet of ships and planes to disperse the oil, flew in experts from around the world, initiated an internal investigation, and more. It's not like they've done nothing and fobbed it off.[/QUOTE]
hey, I know what the magic cure is
it's not cutting on safety equipment
can i have that 20 billion dollars now?
that would be the magic vaccine
20 billion is nothing. It's a pittance. It wouldn't cover the claims from the Texas coast alone.
[QUOTE=Mr. Scorpio;22673219]hey, I know what the magic cure is
it's not cutting on safety equipment
can i have that 20 billion dollars now?[/QUOTE]
That's not a cure, that's a way to stop it from happening again, try again, hahaha.
[QUOTE=Lambeth;22673313]that would be the magic vaccine[/QUOTE]
Oh, sorry.
[editline]08:25PM[/editline]
But yeah, either way..
Oh man, I remember an article about Feinberg's dealings with the families of 9/11 victims. He sounds pretty capable of handing that money out sparingly, it's no wonder he's chosen for things like this.
$20B ($20,000,000,000) is nothing for these guys. I would be satisfied if they would just liquidated the company.
Just do you guys know, BP didnt do this out of the kindness of their heart. They where told by Obama to do it. And you would think they would have this set-up by now not 3 months into this.
[QUOTE=BAZ;22670303]Don't be stupid, environmental damage is always repaired it just takes time to recover.
[editline]12:46AM[/editline]
And they are?
Did you not see? They've just put $20B into an account along with no cap on costs.
BP have acted quite well, obviously people will criticize them because they haven't found the magical cure for the problem but they've done what they can.
Its CEO moved to the Gulf to personally oversee operations. It mobilized a fleet of ships and planes to disperse the oil, flew in experts from around the world, initiated an internal investigation, and more. It's not like they've done nothing and fobbed it off.[/QUOTE]
Actually, they're spending ridiculous amounts of money purely on publicity to limit the public reaction, not what I call acting well when that money could go towards the victims or helping fix the still leaking well.
[QUOTE=BAZ;22670303]Don't be stupid, environmental damage is always repaired it just takes time to recover.
[editline]12:46AM[/editline]
And they are?
Did you not see? They've just put $20B into an account along with no cap on costs.
BP have acted quite well, obviously people will criticize them because they haven't found the magical cure for the problem but they've done what they can.
Its CEO moved to the Gulf to personally oversee operations. It mobilized a fleet of ships and planes to disperse the oil, flew in experts from around the world, initiated an internal investigation, and more. It's not like they've done nothing and fobbed it off.[/QUOTE]
Do you work for BP or something? 20 billion dollars is jack shit for an oil company, especially over 4 years.
[QUOTE=Zackin5;22669717]I'm gonna carry my mouse to the right from the heart and give you a tool.[/QUOTE]
Oops i went left... my bad
20 billion dollars is not jack shit for anyone. Oil companies are not an exception. This money is in addition to the millions (billions?) they have spent in trying to fix the spill
They have done everything possible to try and fix this, and they are still trying. Do you know how hard it is to stop a pressurized stream of crude oil, coming out at 6000 psi, a mile down in the ocean? They are acting as well as anyone can.
And all the idiots claiming they would want the company liquidated and stripped of its assets and sold or taken over by the government, you really have no idea how global economy works do you? It was America's shitty regulations that has led to a huge recession, and now do you really think liquidating one of the biggest companies around would help US' fragile economy? And if US goes down, everyone goes down as demonstrated last year.
[QUOTE=jalit;22674961]Do you work for BP or something? 20 billion dollars is jack shit for an oil company, especially over 4 years.[/QUOTE]
Yeah, maybe if they put all their money in they can use the notes to soak up the oil.
Please be serious, this isn't about making BP bankrupt. This is about making BP pay for the damage, which they have done.
[editline]12:53PM[/editline]
[QUOTE=Bassplaya7;22674915]Actually, they're spending ridiculous amounts of money purely on publicity to limit the public reaction, not what I call acting well when that money could go towards the victims or helping fix the still leaking well.[/QUOTE]
I think you'll find they are helping the victims massively. BP have the money to cover both operational costs. They can help the victims and are trying to keep up the company image. How is that a bad thing?
[QUOTE=Guardian-Angel;22670025]Uhhh yeah. It was completely their fault to begin with, they consciously cut down their spending on maintenance and safety, and now their [B]reckless greed[/B] has led us into what you may as well consider a catastrophe. It was THEIR fault, and THEY should be the ones who pay out of pocket for this fuck-up.[/QUOTE]
Because naturally BP are the only oil company in the world that would take these sorts of risks. someone somewhere needs to do a review, and i imagine they'll find that many other rigs have made similar cuts. Exxon Mobil, for instance. they're a pretty big company, and i'm sure they got that large by being health and safety conscious.
it's all well and good pinning everything all this shit on BP, and rightly so, it was their fault, but it's annoying when people claim that it's the sort of thing only BP would do.
Thats nice of BP
But do they have the money?
[QUOTE=jalit;22674961]Do you work for BP or something? 20 billion dollars is jack shit for an oil company, especially over 4 years.[/QUOTE]
No, it's not. BP has a revenue of ~$250b, and a net income of [I]less[/I] than $20b.
[editline]06:11PM[/editline]
[QUOTE=minilandstan;22683969]Thats nice of BP
But do they have the money?[/QUOTE]
it's more than their income
[editline]06:12PM[/editline]
never mind, i thought it was over 1 year. $5b is still over 1/4 of BP's income though.
[QUOTE=Sigma-Lambda;22673385]20 billion is nothing. It's a pittance. It wouldn't cover the claims from the Texas coast alone.[/QUOTE]
how much are we talking per person?
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