There are already a number of concerns over the pressure from Obama to have BP (NYSE:BP) put $20 billion into an escrow fund to pay claims in the years ahead, with $5 billion a year being committed to the task.
One of the latest concerns is from Mississippi Gov. Haley Barbour, who said he's not sure it's a good idea because BP would be a more predictable company in using their capital to generate revenue, which in turn would make them a healthy company which would be able to pay for their responsibilities, rather than a company dumping billions into an account that produces nothing.
BP has already been paying out millions in claims, and it is questionable as to whether or not this fund will be more fair and faster than they are doing it now.
While acknowledging BP must pay all for the losses in the region, Barbour said it remains to be seen whether or not the escrow account was the most efficient way to accomplish it over the long term.
Showing posts with label claims process. Show all posts
Showing posts with label claims process. Show all posts
Thursday, June 17, 2010
Wednesday, June 16, 2010
BP (NYSE:BP) UPDATE: Legal Claim Process, Compensation Claims
BP (NYSE:BP) and President Obama reached an agreement on they will handle the company's compensation claim and claim process. A $20 billion fund will be set up to compensate the victims of the oil spill.
After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.
"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed
The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.
After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.
"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed
The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.
Tuesday, June 15, 2010
BP's (NYSE:BP) Compensation Claim and Claims Process
Robert Gibbs, White House spokesman ensured that Obama is poised to take over the handling of BP's (NYSE:BP) oil spill compensation claim and claims process if needed, to ensure people get the help needed to recover from this disaster.
On the matter of the disputed damage payment, Gibbs said. " We have to get an independent claims process. I think everyone agrees we have to get BP out of the claims processes, and as I said, make sure that fisherman, hotel owners have a fast and efficient and transparent claims process so that their getting their livelihoods replaced."
"This disaster has taken their way of making a living away from them," he said. "We need to do this quickly, and we have to make sure whatever money goes into that, that in no way caps what BP is responsible for. Whatever money they owe to anybody in the Gulf, there going to have to pay regardless of the amount."
According to Gibbs, the purpose of taking the control of the claims process out of BP's hands would be to make economically distressed individuals and businesses "whole." Obama has made an outline of a comprehensive response and recovery program.
On the matter of the disputed damage payment, Gibbs said. " We have to get an independent claims process. I think everyone agrees we have to get BP out of the claims processes, and as I said, make sure that fisherman, hotel owners have a fast and efficient and transparent claims process so that their getting their livelihoods replaced."
"This disaster has taken their way of making a living away from them," he said. "We need to do this quickly, and we have to make sure whatever money goes into that, that in no way caps what BP is responsible for. Whatever money they owe to anybody in the Gulf, there going to have to pay regardless of the amount."
According to Gibbs, the purpose of taking the control of the claims process out of BP's hands would be to make economically distressed individuals and businesses "whole." Obama has made an outline of a comprehensive response and recovery program.
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