Obama announces BP escrow account for Gulf Oil Spill damages

BP will set aside $20 billion to pay the victims of the massive oil spill in the Gulf, senior administration officials said Wednesday, a move made under pressure by the White House as the company copes with causing the worst environmental disaster in U.S. history.

The independent fund will be led by lawyer Kenneth Feinberg, who oversaw payments to families of victims of the Sept. 11, 2001, terrorist attacks. In his current rule, Feinberg is known as Obama's "pay czar," setting salary limits for companies getting the most aid from a $700 billion government bailout fund.

Obama was to announce the deal in a Rose Garden statement later Wednesday after wrapping up a meeting with BP executives at the White House.

The officials familiar with the details spoke to the AP on condition of anonymity before the announcement.

The still-unfolding disaster in the Gulf, as tens of thousands of gallons of oil continue to pour from the broken well daily, is jeopardizing the environment and ecosystems along with the livelihoods of tens of thousands of people across the coastal areas of Louisiana, Mississippi, Alabama and Florida. Those affected ranged from fishermen to restaurant to oil rig workers idled by Obama's temporary halt to new deep-sea oil drilling.

Several big questions remain unanswered, including when BP would start processing claims and paying people out of the fund; who and what would exactly be covered under the plan; how the White House and BP came up with a figure of $20 billion; and whether other involved companies will be required to chip in.

At $20 billion, the size of the fund is the same that was recommended by congressional democrats.

BP has taken the brunt of criticism about the oil spill because it was the operator of the Deepwater Horizon rig that sunk. It also is a majority owner of the undersea well that has been spewing oil since the explosion.

But when the day of reckoning finally comes, it may not be the only one having to pay up. That's because Swiss-based Transocean Ltd. owned a majority interest in the rig. Anadarko Petroleum, based in The Woodlands, Texas, has a 25 percent non-operating interest in the well.

Feinberg ran the unprecedented $7 billion government compensation program for the victims of the 2001 terrorist attacks.

It was a job that lasted nearly three years as he decided how much compensation families of the victims should get, largely based on how much income they would have earned in a lifetime.

As pay czar, Feinberg has capped cash salaries at $500,000 this year for the vast majority of the top executives at the five major companies that received bailout funding: American International Group, GMAC Financial Services, Chrysler Financial, Chrysler and General Motors.

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[gqunit69]

the victims are the animals in the ocean u dumbass obama that are dead now , i dont think they care for money

[IranContraScumDid911]

@gqunit69 That is all Obama cares about.

[cureworks]

Where's the cash now?

[chiman1000]

Don't worry people I am hearing ad's Obama Regime will bailout BP. So BP does not pay the tax payers do!!!

[GOLDENARMY1000]

OBAMA GOT PLAYED THEY WALKED OUT OF THERE LAUGHING KNOWING THAT THEY ARE GOING TO MAKE THAT MONEY BACK IN A BLINK OF AN EYE AND THE MONEY IS BEING PAID OUT 5 BILLION A YEAR. THE OIL IS COMING OUT NOW SO TAKE THAT MONEY NOW ALL OF IT AND STILL STICK IT TO BP. JUST LIKE THE OTHER COMMENT THEY WILL RAISE PRICES BY .05 AND POOF THEY HAVE THE MONEY BACK WHERE IT BELONGS ,WITH THEM. 20 BILLION ISNT SHIT!!!!!!!!!!!!!!!!!!!!!!!!!!­!!!!!!!!!!!!!!!!!!!!!!!!!!

[GOLDENARMY1000]

In the last four years (including the first quarter of 2010), BP has made a total of $82 billion, according to Google Finance – putting the cost of the cleanup so far at just 1.2% of profits. If you assume BP would have made about as much as it has averaged over the past four years, the cost of the Gulf oil spill so far amounts to just under 5% of BP annual profits

[AndrewDeLong]

@Salt231

Please state how any laws are being broken here? All I see is a company getting its dues. If an entire nation (England) feels the pinch because of that, it not our problem. That's just poor economics on their part. We went through our stint of monopolization from the mid 1800's to the early 1900's, and we had to deal and get out of that practice. I guess England has similar, albeit different, but still similar issues to handle.

[Salt231]

Obama is fair in getting BP to pay for the cleanup but he is literally attacking BP. He has damaged its reputation by bullying it into submission and modifying international laws to get at them.

It is hurting all of England because 1/6 of all pension funds in that country are invested in BP. The stock value of this company is dropping rapidly and is costing more money than the 20billion dollar compensation.

If this company goes down England will go with it.

You are BREAKING THE LAW OBAMA.

[eatmelibs]

F YOU!! YOU F*CKIN' PRICK!! You are Such a F*ing! Socialist Piece of Sh*t!! Ya, they(BP) agreed....You Threatened Them just as you did the banks with the bailout....We won't forget...Wells Fargo DID NOT WANT THE BAILOUT UNTIL YOU SAID "YOU WILL SIGN ON, FARGO!" YOU'RE SUCH A F*CKIN' LIAR!! Who did you have in there with you and BP....Al "Shake down" Sharpton?!?, Reverend Jesse "Thug" Jackson! This is total Lawlessness.....Oh, Ya, your from Chicago. (Jimmy Carter #2)

[iamavet]

20 Billion is a joke, Obama either is stupid or took advice from his idiot advisers.

BP had reported 14 billion in 2009

This oil disaster will still be causing American people troubles for the next 10 to 20 years. Divide the 20 billion by 10 years than by 5 States.

They can also pass those costs of 20 billion onto American people by rising the price of gas by $.05