A BP escrow fund has been created by BP executives and also the Obama administration. The BP escrow fund will be used to pay the damages from the oil spill. Victims of the oil spill can be paid for lost income and other damages. The $20 billion figure is not a cap, though some are questioning whether the escrow fund is going to help or hurt efforts to stop the gusher and clean up the environmental, political and economic mess.

Source for this article: BP Escrow fund - Helpful or hurtful

BP escrow will not be a cap

Cleaning up the BP oil spill and restoring lost income could cost as much as $ 100 billion. On the Today Show, David Axelrod assured reporters that “this is not a get-out-of-the-situation-free card." Administration officials have also said that if the BP escrow fund ends up not being enough cash to pay damages, BP will nevertheless be held responsible for the cost.

Kenneth Fineburg to administer BP escrow fund

At the moment, Kenneth Fineburg is the “pay czar” for the federal government’s TARP bailout. Fineburg has also administered the escrow fund for the September 11, 2001 attacks.

BP escrow fund addresses complaints

The BP escrow fund is, in part, a response to difficulties with BP’s claims process. Some BP damage claims have been paid, though others are nevertheless “in consideration”. Some oil spill victims have been asked to provide up to 3 years of documentation of their income.

Will the BP escrow become a distraction?

There are some commentators, though, who are concerned the BP escrow fund will not be helpful. Financial reports show that BP earned $ 5.6 billion in profit in 2009. The BP escrow fund is a bad idea, according to governor of Mississippi Haley Barbour. Her concern is that once BP pays into the escrow fund, it may wash its hands of the oil spill.

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