A BP escrow fund has been created by BP executives and the Obama administration. The BP escrow fund is money the business sets aside for paying oil spill damages. It can be used to pay claims of lost income, companies, and other damages by human victims of the Deepwater Horizon oil spill. The real problem, though, is the question of if the BP escrow fund will really help.
Resource for this article: BP Escrow fund – Helpful or hurtful
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. Obama advisor David Axelrod assured the public today 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.
BP escrow fund to be administered by Fineburg
Kenneth Fineburg works as the "pay czar" for banks that received the TARP bailout. A lawyer, Kenneth Fineburg has experience in administering disaster escrow funds – he administered the victims’ fund for the September 11, 2001 attacks.
Complaints ensured creation of BP escrow fund
The BP escrow fund, called for at first by President Obama, is being created because of issues 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 have to provide 3 years of tax returns.
Will BP escrow fund distract from spill?
Some politicians are questioning the timing of the BP escrow fund. In 2009, BP reported $ 5.6 billion in operating profits. However, Governor Haley Barbour of Mississippi has spoken out against the BP escrow fund. Her concern is that once BP pays into the escrow fund, it may wash its hands of the oil spill.
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NowPublic.com
ABC News
AP News
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