In a private, closed-door meeting, Obama administration officials and BP executives agreed to the creation of a $20 billion BP escrow fund. The BP escrow fund will be used to pay the damages from the oil spill. It can be used to pay claims of lost income, businesses, and other damages by human victims of the Deepwater Horizon oil spill. Some politicians are wondering if this BP escrow fund is really distracting from the real problem.
Article Source: BP Escrow fund – Helpful or hurtful By Personal Money Store
Liability cap not established by the BP escrow
The estimate of damage from the BP oil spill run from $ 1 billion to $ 100 billion. On the Today Show, David Axelrod assured reporters 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 more.
Fineburg tapped to administer BP escrow fund
At the moment, Kenneth Fineburg is the "pay czar" for the federal government's TARP bailout. Fineburg has also administered the escrow fund for the September 11, 2001 attacks.
BP escrow fund addresses complaints
BP's claims process has garnered complaints, which increased calls for a BP escrow fund style system. While some residents say they got checks from BP for their damage claims “within days,” others are saying they have yet to see anything. Some oil spill victims have been asked to provide up to 3 years of documentation of their income.
Will distraction ensue from BP escrow fund?
A few politicians are wondering if the BP escrow fund is really a red herring. Last year, BP earned $ 5.6 billion in profits. The BP escrow fund is a bad idea, as outlined by governor of Mississippi Haley Barbour. Her concern is that once BP pays into the escrow fund, it may wash its hands of the oil spill.
Sources:
NowPublic.com
ABC News
AP News
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