Obama wants BP to set up escrow account for claims

[ProSense]

Source: AP

WASHINGTON – President Barack Obama will demand that BP create a special account with "substantial" reserves to pay Gulf oil claims and is readying aid packages for the region, his top political adviser said Sunday.

Obama, set to visit the Gulf Coast on Monday and Tuesday, also plans an Oval Office address Tuesday night after his return to Washington. He meets at the White House with BP executives, including the oil company's chairman, on Wednesday.

<...>

The White House wants an independent, third party to administer the escrow account and compensate those with "legitimate" claims for damages, he said. The amount of money set aside will be part of the White House discussions, but Axelrod said it should be "substantial."

In addition, the Obama administration will announce several aid packages and the president will make clear in his meeting Wednesday with BP's chairman, Carl-Henric Svanberg, and others about his expectation of BP's responsibility for caring for people affected by the spill.


Read more: http://news.yahoo.com/s/ap/20100613/ap_on_go_pr_wh/us_gulf_oil_spill_obama_3

[dipsydoodle]

1. Would need to be

a third party country. Wonder if he had one in mind ?

[pocoloco]

2. "not concerned that BP will go bankrupt"

Can they not comprehend the possible damage this spill will have caused
by the time it has been stopped, if that is even possible?

[metapunditedgy]

3. i'm afraid that this will turn out to be a way of putting a *cap* on the damages.

Suppose the account is $2B. Does that let bp off the hook for the rest?

[Moosepoop]

7. I wouldn't think so

though obviously I can't say for sure. If it were to work anything like the escrow account with my mortgage, increases in the bills (property taxes and house insurance for me, payouts to individuals and cleanup costs for BP) would result in higher payments into the escrow account.

The escrow for my taxes & insurance was begun with a preliminary amount deposited, based on prior tax & insurance bills. But the payments are ongoing, I pay into it each month in order to keep the funding high enough to pay each tax or insurance bill as it comes due. If a bill goes up, so does the amount that I have to put into the account each month in order to cover the projected cost (reflected in the form of a higher mortgage payment).

I'm guessing that BP will be asked (told?) to deposit a substantial starting amount, and then add to it regularly as the claims deplete the available funds. :shrug:

[JDPriestly]

20. I would do it so that BP had to put enough money in the account

to cover every claim made and increase the amount as more claims are made. If money is remaining at the end, BP gets that part back.

[wordpix]

4. put Robert Reich in charge of the escrow acct---and start fining based on

maximum amt for criminal wrongdoing ($4300/barrel + fines for various EPA, Fish & Wildlife, etc. violations).

Otherwise, I imagine BP has a F__K you in mind to the O admin.

[FailureToCommunicate]

17. Agreed. Here is his reasonable sounding proposal:

link
http://robertreich.org/post/650145579/why-obama-should-put-bp-under-temporary-receivership

[FBI_Un_Sub]

5. Has to be done

to get the funds out of BP's control.

[Skink]

6. We could surround all their oil rigs with military vessels.

[dipsydoodle]

8. Good luck with that

with the land based ones in Russia and China.

[Joanne98]

9. Obama wants BP to establish spill escrow account

Source: Reuters

Louisiana (Reuters) - President Barack Obama will press BP executives this week to set up an escrow account to pay damage claims by individuals and businesses hurt by the Gulf of Mexico oil spill disaster.

U.S. | Green Business | Gulf Oil Spill

The move comes as Obama, who will address the nation about the spill on Tuesday night, faces questions on his handling of the disaster, which has now dragged on for 55 days. Millions of gallons of oil have poured into the Gulf since an April 20 offshore rig blast killed 11 workers and blew out the BP well.

A U.S. official told Reuters on Sunday that Obama also will call for an independent panel to administer the payments when he meets Chairman Carl-Henric Svanberg and other BP officials at the White House on Wednesday.

The Politico newspaper, which first reported that Obama would discuss the escrow account, quoted an official as saying the president would "make clear that he expects, and that if necessary will exercise his full legal authority to ensure, that BP sets aside the funds required to pay individuals and businesses damaged by this massive spill."


Read more: http://www.reuters.com/article/idUSTRE6573FD20100613

[notesdev]

10. For our initial deposit we would like

the heads of every exec up the chain who knew that cutting corners was standard operating procedure and did nothing about it

[nenagh]

11. And for each day BP drags their collective feet on setting up an account..

He will exponentially release photos of oiled birds, beaches, marshes, as well photographic documentation of the massive unemployment brought about by the blowout of the BP well in the Gulf.

[defendandprotect]

12. We should at least put them into Receivership . . . ????

[jwirr]

13. JP Morgan Chase are their largest stockholders - put the pressure

on them. This is a good idea.

[Poll_Blind]

14. This is not a bad _start_. n/t

PB

[wordpix]

15. "exercise his full legal authority to ensure"---exercise it, O, don't back down

[marions ghost]

16. get the money gushing

:thumbsup: depending...

[Bette Noir]

18. 'Bout time.

[JDPriestly]

19. This is how this should be handled.

I would like to see a government agency handle the demands, but BP probably would not want that.