Thursday, June 17, 2010

Give Obama Credit For Nailing Down BP's $20 Billion

And for calling it a down-payment.


Remember that Exxon paid out only a fraction of its true liabilities.

With the $20 billion escrowed, BP can't tap back into it or influence the payouts, as the fund is independently-managed.

With a more-than-$4,000-per-barrel fine assessable against BP's spilled oil, along with state and local fines, fees and other legal claims (criminal, possibly, also), BP may yet look for a merger, or bankruptcy filing.

In which case, Obama's $20-billion-in-hand will look like pretty smart negotiating.

1 comment:

enoughalready said...

Thanks for the reminder about what the Supreme Court did to Exxon's liabilities in Alaska. I do not think we can hear enough about that outrage. (I wish President Obama would mention it more himself.) Too many commentators, including David Brooks, seem to think we have a working claims process in this country that would justly compensate the injured parties in the Gulf if only we would let it.