Obama administration officials have created a BP escrow fund for BP executives to put $20 billion in to pay damage claims from the oil spill. The BP escrow fund could be used to pay the damages from the oil spill. Those that are damaged by the oil spill will be able to make a claim to this BP escrow fund. The real problem, though, is the question of if the BP escrow fund will really help.
Liability cap not established by the BP escrow
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, David Axelrod assured reporters that “this is not a get-out-of-the-situation-free card.” Administration officials have also said that if the BP escrow fund ends up not being enough cash to pay damages, BP will still be held responsible for the cost.
Fineburg tapped to administer BP escrow fund
Kenneth Fineburg works as the “pay czar” for banks that received the TARP bailout. .
Complaints spur creation of BP escrow fund
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. Oil spill victims, when submitting claims to BP, have been told they need to provide 3 years of tax returns.
Will the BP escrow become a distraction?
There are some commentators, though, who are concerned that the BP escrow fund will not be helpful. In 2009, BP reported $ 5.6 billion in operating profits. Haley Barbour, governor of Mississippi, has said that the BP escrow fund is a bad idea. She expressed a concern that BP may consider it case closed once they pay to the fund.
Find out more:
NowPublic.com
ABC News
AP News
