Wednesday, June 16, 2010

Pony Up

"Under pressure from President Barack Obama, BP agreed today to set aside $20 billion in a spill recovery escrow account to compensate Gulf Coast fishermen and others who have lost wages and work because of the massive spill from a BP deep-water well.

The company also said it will suspend its quarterly dividend payments to shareholders for the rest of this year and will divert some of that cash to the escrow account, which would be managed by an independent administrator and be funded over three and a half years.

BP also agreed to set aside $100 million to compensate oil industry workers whose jobs disappear because of the government's moratorium on deep-water drilling and a delay of exploration in shallower depths while regulators develop new safety regulations. "
---Houston Chronicle

Congress dithered and couldn't get this done. BP evaded, pouring its money into PR and planning bonuses and stock dividends. President Obama got what no one else got close to accomplishing. And as he promised in his Oval Office speech, the fund will not be administered by BP, or the government, but a special third party administrator. It could even be considered a "mind-boggling accomplishment." The President emphasized that the $20 billion is a floor, not a ceiling on what BP will pay to (as they're now saying in their TV ads) make this right. Oddly if predictably, Rabid Right GOPers are upset.

No comments: