A BP escrow fund has been created by BP executives and also the Obama administration. The business is expected to set aside money within the BP escrow fund. Victims of the oil spill can be paid for lost income and other damages. The real problem, though, is the question of if the BP escrow fund will really help.
Article Resource: BP Escrow fund - Helpful or hurtful
BP escrow fund not a liability cap
The estimate of damage from the BP oil spill run from $ 1 billion 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 will be expected to pay more.
BP escrow fund to be administered by Fineburg
Currently serving as the "pay czar" of TARP fund banks, Kenneth Fineburg is being tapped to administer the BP escrow fund. 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 is, in part, a response to issues with BP’s claims process. Some BP damage claims are paid, though others are nevertheless “in consideration”. Some oil spill victims are asked to provide up to three years of documentation of their income.
Will distraction ensue from BP escrow fund?
There are some commentators, though, who are concerned the BP escrow fund will not be helpful. Last year, BP earned $ 5.6 billion in 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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