The BP escrow fund to help payments?
A BP escrow fund has been created by BP executives and also the Obama administration. The company is expected to set aside money in the BP escrow fund. 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 Resource: BP Escrow fund - Helpful or hurtful
Cap of liability not created with 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." Administration officials have also said that if the BP escrow fund ends up not being enough cash to pay damages, BP will nevertheless be held responsible for the cost.
BP escrow fund will be headed up by Kenneth Fineburg
Currently serving as the "pay czar" of TARP fund banks, Kenneth Fineburg is being tapped to administer the BP escrow fund. Fineburg has also administered the escrow fund for the September 11, 2001 attacks.
BP escrow fund in response to complaints
The BP escrow fund is, in part, a response to difficulties with BP’s claims process. BP has paid some claims, but by no means all of them. Victims are being asked to provide up to two or three years of tax documents, among other documentation.
Will the BP escrow become a distraction?
Some politicians are questioning the timing of the BP escrow fund. Last year, BP earned $ 5.6 billion in profits. Haley Barbour, governor of Mississippi, has said the BP escrow fund is a bad idea. She worries that when BP pays money into the escrow fund, they'll consider it case closed.
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