A BP escrow fund has been created by BP executives and also the Obama administration. The BP escrow fund can be used to pay the damages from the oil spill. Victims of the oil spill could be paid for lost income and other damages. The $20 billion figure is not a cap, though some are questioning whether the escrow fund is going to help or hurt efforts to stop the gusher and clean up the environmental, political and economic mess.
Article Source: BP Escrow fund – Helpful or hurtful By Personal Money Store
BP escrow will not be a cap
Cleaning up the BP oil spill and restoring lost income could cost as much as $ 100 billion. Obama advisor David Axelrod assured the public today 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
Currently serving as the “pay czar” of TARP fund banks, Kenneth Fineburg is being tapped to administer the BP escrow fund. A lawyer, Kenneth Fineburg has experience in administering disaster escrow funds – he administered the victims’ 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. BP has paid some claims, but by no means all of them. Some oil spill victims have been asked to provide up to three years of documentation of their income.
Will distraction ensue from BP escrow fund?
Some politicians are questioning the timing of the BP escrow fund. In 2009, BP reported $ 5.6 billion in operating profits. The BP escrow fund is a bad idea, according to governor of Mississippi Haley Barbour. She expressed a concern that BP may consider it case closed once they pay into the fund.
Sources:
NowPublic.com
ABC News
AP News
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