Say, What’s The Deal With The $20 Billion BP Slush Fund?

Something I have been wondering about all day, after listening to the news reports about people still suffering, their businesses still closed or business vastly reduced, people out of work, on this 1 year anniversary of the BP blowout. Remember this

Mr. Obama said the fund would be run by Kenneth Feinberg — the administration’s Wall Street “pay czar” who also administered payments to the families of 9/11 victims — and does not represent a cap, nor does it mean those affected in the region cannot pursue claims in court.

“The people of the Gulf have my commitment that BP will meet its obligations to them,” he told reporters Wednesday after meeting with BP CEO Tony Hayward, Chairman Carl-Henric Svanberg and other top executives.

How’s that working out?

The fund established to compensate Gulf Coast residents in the aftermath of last year’s massive BP oil spill said Monday it has paid out $3.8 billion so far.

The Gulf Coast Claims Facility, established last August with $20 billion in seed money from BP (BP), said it has approved 300,000 claims from businesses and individuals hurt by the spill, out of approximately 857,000 claims submitted.

Now, had it been President Bush at the helm on this first anniversary, the media would be screaming this from the rafters. With Obama, it is relegated to “eh.” Good thing that

“We continue to hold BP and other responsible parties fully accountable for the damage they’ve done and the painful losses that they’ve caused.”

Then he flew to San Francisco for a campaign event disguised as a town hall, followed by two DNC events this evening.

Crossed at Right Wing News and Stop The ACLU.

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3 Responses to “Say, What’s The Deal With The $20 Billion BP Slush Fund?”

  1. captainfish says:

    Teach, keep reading down that page for the kicker….
    Quote:
    The fund employs 3,200 people in five states and has 35 offices. It is independently administered by Ken Feinberg,

    THAT’S NEARLY 100 PEOPLE PER OFFICE?!!?!? WHO NEEDS 100 PEOPLE TO VET CLAIMS AND WHY?

    Quote:
    It will continue to pay claims until August 2013.

    WHY?!?!!? Is the oil still coming out and damaging stuff? Why put an end date on it anyway if the oil supposedly prevents future revenue from fishing and tourism?

    Quote:
    While it seems like the $20 billion may not be exhausted by 2013, analysts don’t foresee BP getting any of that money back.

    “It’s like the tobacco money,” said Douglas Youngson, an oil analyst at Arbuthnot Securities, a London-based investment bank. “It’s now one big pot of cash, and it will get spent.”

    Yeah, give it to the government to take money from a company and never give it back.

    Ok, if you go with the 3.8Billion spent on 300,000 claims.. that is an average of $12,666 paid per claim. WOWOWOW.

    and that was from nearly a million claims. Are there really that many fishermen and hotels on the North gulf coast beach?

  2. gitarcarver says:

    Are there really that many fishermen and hotels on the North gulf coast beach?

    Well, you have to remember that the people can make claims in support industries as well. For example, fishermen can make a claim, and so can the shop that services their engines. And so can the deli that feeds the guys in the shop that fixes the engines. And so can the meat company that makes the meat for the deli that makes the sandwiches for the guys in the shop that fix the engines of the fishermen.

    This payout is taking a long time which is typical of government workers. If they have until 2013, they will take until 2013.

    At the same time, after the disaster of FEMA payouts in New Orleans, where the spigot of money never stopped and people sued to have it continue to gush forth payments, I welcome some oversight and diligence.

    Unfortunately, I don’t expect oversight and diligence from the government to be the same as competent oversight and diligence.

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