BP Agrees to Set Aside About $20 Billion for Spill Claims

[debk]

WASHINGTON — The White House and BP agreed on Wednesday that the oil giant would create a $20 billion fund to pay claims for the worst oil spill in American history. The fund will be independently run by Kenneth Feinberg, the mediator who oversaw the 9/11 victims compensation fund. .

President Obama announced the agreement to reporters at the White House Wednesday afternoon, after he and his top advisers met in the morning with BP’s top executives and lawyers to finalize the agreement.

After the president’s announcement, the chairman of BP, Carl-Henric Svanberg, announced that the company would suspend its dividend for the remainder of the year.

The agreement with the White House would give BP several years to deposit the full amount into the fund so it could better manage its cash flow, maintain its financial viability and not scare off investors.

http://www.nytimes.com/2010/06/17/us/politics/17obama.html


Obama is on tv now, saying that BP will make an INITIAL funding of $20 Billion, and will be controlled by an independent party. It's going to be Ken Somebody who handled the claims for 9/11.

Obama is going to get a bump on this.....

[thundley4]

I'm not so sure. Some are already thinking that this may help BP's case in limiting their liability. By law there is already a cap on how much they are responsible for, unless it is proven that there was negligence.

[debk]

I'm not so sure. Some are already thinking that this may help BP's case in limiting their liability. By law there is already a cap on how much they are responsible for, unless it is proven that there was negligence.

The way I understood what Obama said, BP was originally only going to fund $100 million....HE got them to fund $20 Billion to address claims.

I'm not talking about how much each individual will be able to receive, just the amount that will be initially put into the fund.

All people will hear is that Obama saved them by getting that nasty Big Oil Company to pay them.


edit.....

I made a mistake....BP is going to create a $100 million fund to pay jobless oil industry workers....

http://www.msnbc.msn.com/id/37725103/ns/disaster_in_the_gulf/

[rich_t]

I'm not so sure. Some are already thinking that this may help BP's case in limiting their liability. By law there is already a cap on how much they are responsible for, unless it is proven that there was negligence.

Under current federal law, BP's liabilty is $75 million.

[docstew]

Here's my question: what authority did 0bama have to be able to "demand" that BP put this money aside?  This question was asked by Neal Boortz and Chris Matthews.

[debk]

Here's my question: what authority did 0bama have to be able to "demand" that BP put this money aside?  This question was asked by Neal Boortz and Chris Matthews.

He didn't have it, he just did it, and it worked.

[IassaFTots]

Under current federal law, BP's liabilty is $75 million.

Well then, if that is all, then my question would be why are they forking out $20 Billion?

[bkg]

He didn't have it, he just did it, and it worked.

It's pure extortion... And it marks the end of the private sector in the USA.

innovation and risk will leave... no point in doing business here if Guito is stops by every Friday.

[Mike220]

Well then, if that is all, then my question would be why are they forking out $20 Billion?

Because they folded like a cheap suit while trying to save some scrap of reputation.

[rich_t]

Because they folded like a cheap suit while trying to save some scrap of reputation.

Yup....

[IassaFTots]

Because they folded like a cheap suit while trying to save some scrap of reputation.

Well, that is an awful lot of reputation.

[bkg]

Because they folded like a cheap suit while trying to save some scrap of reputation.

I think it's going to cost them their reputation, frankly.

[Mike220]

Well, that is an awful lot of reputation.

Bribing the feebs is an expensive venture. Any less and Obambi and Co. can crow how BP doesn't care about people and is just in it for the money. Now they can shut him up for a few weeks until it's time for the next round of protection money.

[Mike220]

I think it's going to cost them their reputation, frankly.

They don't really have any anymore. But it's like politicians caught diddling the office help.

"But look at all the good I've done. Don't think about my monumental screw ups."

 

[bkg]

They don't really have any anymore. But it's like politicians caught diddling the office help.

"But look at all the good I've done. Don't think about my monumental screw ups."

 

I mean from the perspective of investment. By captitulating prior to finalization of the investigation, they create a precident that may make them no longer viable for investors.

[Mike220]

I mean from the perspective of investment. By captitulating prior to finalization of the investigation, they create a precident that may make them no longer viable for investors.

Good point.

[IassaFTots]

I mean from the perspective of investment. By captitulating prior to finalization of the investigation, they create a precident that may make them no longer viable for investors.

That is why it didn't make sense to me.  I mean, there is a good possibility that others are to blame in this accident as well.  Why make such a grand gesture?  It reeks of guilt.  

[thundley4]

That is why it didn't make sense to me.  I mean, there is a good possibility that others are to blame in this accident as well.  Why make such a grand gesture?  It reeks of guilt.  

Or it reeks of collusion with Obumbler, and his green energy scheme of cap and tax.

[IassaFTots]

Or it reeks of collusion with Obumbler, and his green energy scheme of cap and tax.

A-yup.  At any rate, it doesn't look like a good business practice, they basically shot their foot off.  There has to be a significant reason behind that. 

[bkg]

Or it reeks of collusion with Obumbler, and his green energy scheme of cap and tax.

Exemptions, maybe?

[thundley4]

A-yup.  At any rate, it doesn't look like a good business practice, they basically shot their foot off.  There has to be a significant reason behind that. 

Tax breaks for "green energy" plans built into the upcoming Cap & Tax bill?

Exemptions, maybe?

Exactly.  That $20B will be a drop in the bucket.

[bkg]

Tax breaks for "green energy" plans built into the upcoming Cap & Tax bill?

Exactly.  That $20B will be a drop in the bucket.

Which would fit nicely into what Jason Lewis says... "We're a society that rewards people for ripping off their neighbor... "

[Ptarmigan]

Don't know if this true.
http://blog.seattlepi.com/seattlepolitics/archives/211288.asp?from=blog_last3

BP supports Cap and Trade.

[thundley4]

Don't know if this true.
http://blog.seattlepi.com/seattlepolitics/archives/211288.asp?from=blog_last3

BP supports Cap and Trade.

I still say there was some quid pro quo discussed at that 20 minute meeting today.  BP = Beyond Petroleum, not British Petroleum.

[cavegal]

the head of BP sold his stock 10 days before the fire.  Goldman Sachs sold 250million in BP stock just before the fire. BP gives in to Obama. In the end they still look good??NO? YES? .. BP was huge on the carbon footprint comercials remember? BP huge donor to Obama.  BP made 17 billion last year.  No point just sayin'!