Reply #7: Silverstein had the insurance [View All]

[dr.strangelove]

Silverstein Properties signed a 99 year lease. As part of the lease, Silverstein was responsible for upkeep of the buildings. Silverstein purchased 3.55 billion in insurance (hardly enough considering his own people put a 7 billion value on teh building before he finalized the insurance). Under the lease, Silverstein is entitled to the rents and is responsible for returning the WTC to the Port Authority at the end of the lease. The PA is not seeking to get the same building back that they rented, but they do expect the same square footage and amenities.

While Silverstein didn;t buy enough insurance, he also has agreed not to bankrupt US Air and American, along with the Logan Airport and the City of Boston, with the lawsuit he could have brougth.

The long and short is that the fed is going to face these costs and get little in return other than keeping the two largest air carriers flying and the Port of Logan Airport in business.