In a private, closed-door meeting, Obama administration officials and BP executives agreed to the creation of a $20 billion BP escrow fund. The business is expected to set aside money in the BP escrow fund. Victims of the oil spill will be paid for lost income and other damages. The real problem, though, is the question of if the BP escrow fund will really help.
BP escrow will not be a 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.” BP has already been told that if the $ 20 billion runs out, they’ll be expected to pay more.
Fineburg tapped to administer BP escrow fund
Kenneth Fineburg works as the “pay czar” for banks that received the TARP bailout. The escrow fund for victims of the September 11, 2001 attacks was also administered by Kenneth Fineburg.
Complaints spur creation of BP escrow fund
The BP escrow fund, called for originally by President Obama, is being created because of problems with BP’s response to claims. 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 fund distract from cleanup?
There are some commentators, though, who are concerned the BP escrow fund will not be helpful. Financial reports show that BP earned $ 5.6 billion in profit in 2009. The BP escrow fund is a bad idea, according to governor of Mississippi Haley Barbour. Her concern is that once BP pays to the escrow fund, it may wash its hands of the oil spill.
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