[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/06/16/art.cnn.obama.escrowfundjpg caption="Obama announced Wednesday that BP will place $20 billion in an escrow fund to pay for claims in the Gulf of Mexico oil disaster ."]
Washington (CNN) - BP has reached an agreement with the federal government to place $20 billion in an escrow fund to pay for claims in the Gulf of Mexico oil disaster, President Barack Obama announced at the White House on Wednesday. The amount does not represent a total cap on the amount the oil giant may ultimately have to pay, the president said.
Obama's announcement came at the conclusion of a lengthy White House meeting between top administration and BP officials.
The $20 billion fund will be administered by an independent third party, Obama said. Attorney Kenneth Feinberg - who oversaw the compensation fund for victims of the September 11, 2001, terror attacks - will oversee the claims process, he added.
The fund "will not supersede individuals' or states' rights to present claims in court," he said. BP, he asserted, will remain liable for the environmental disaster in the Gulf.
BP has also voluntarily agreed to create a $100 million fund for the purpose of compensating oil rig workers now unemployed as a result of closure of other deepwater rigs after the April 20 Deepwater Horizon explosion, Obama said.
Well done Mr. President. When will you people learn – the president is here to stay. Like it or not.
I will never vote for republican candidates again. they are hateful party. there are screwballs on both sides. but as I see it GOP right wingers are the most toxic. do nothing robots I have ever seen. if America goes their way. it will be the end of this country and personal freedom and environmental integrity. china will become the new superpower.
Good move President Obama, I can't wait to see how the conservatives spin this, I already heard that Michael Steele complaining, when was the last time that he went to the gulf to see how bad it really is? It must be nice to sit in his nice cool office and complain about the president.
Once again, President Obama is working for the people. All the people. The media (right and left) is doing nothing but hurting us with all their needs for instant gratification. This oil spill will take time to resolve. It's as simple as that. In the mean time our folks in the Gulf Coast need to survive. He is making sure that happens.
Mr. President, keep ignoring the idiots and keep working for the people, ALL THE PEOPLE...
After almost two months since the spill started, Obama has a TWENTY minute meeting with BP?! The buzz that BP was willing to set up an escrow account has been circulating for a couple of days now, so it's not like Obama had to work very hard to get this. You libs are so easily impressed. And I'm sure it was a very cozy meeting anyway since Obama was the biggest recipient of BP campaign cash.
"However, one needs to remember that these companies make Trillions in profit a year. "
Alright alright...take a few deep breaths, Captain Hyperbole. BP nets about $6B per quarter or $24B per year (i.e., 2.4% of $1T). While that's certainly not chump change, it does give you a proper scale by which to understand just how much money and how significant an amount it is to BP that Obama is forcing them to put into escrow....about 10 months worth of net profit. That's a HUGE hit for BP considering that it only has approximately $7B in liquid assets lying about. My guess is that they have to piny up something lie $5B from the get-go and then pay into the escrow fund in installments. The goal isn't to bankrupt BP, force it into receivership, force a sell-off of its assets, etc. The goal is simply to make the people, wildlife and the natural resources of the Gulf whole again. Punishment comes later after a federal grand jury decides some necks need to stretch.
Scramble for more dirt, Republicans and Teaparty folks....All the talk about Obama not saying anything in his speech irritates me. If he were to say everything will be cleared up by tomorrow and and all new jobs will replace the old and all of the oil will be gone, then the Fox people and a few other non-journalists would be claiming he is a liar and thinks he is God and ruler of all. He spoke the truth, perhaps not in detail but I do not believe anyone can give details with this disaster. It is an on-going huge problem. If the Republicans and Teaparty people are so brilliant, where is their answer?.Oh I remember, they don't have any solutions only "NO" to everything the President tries to do. Political games are really out of hand. He doesn't need hard hats, standing on ships with signs of MISSION ACCOMPLISHED. I believe he is at least talking to all the experts he can find. If he tries to handle more than one problem at a time thenhe is said to be moving too fast in too many directions. If he tries to concentrate on an immediate problem he is then not doing enough. Keep going President Obama, you are making a difference and the country knows this.
This is huge for the people and businesses affected, think Exon where it took decades for expensive litigation to get far less than this, and the lawyers took much of it.
PRESIDENT OBAMA HITS A GRANDSLAM!
While the President was doing a political imitation of Muhammad Ali's "Rope-a-Dope"; Liberal Democrats were having a "psycho-hissie fit" blaming Obama for being too weak on BP.
President walks into a 20-minute meeting with BP and walks out with:
(1.) – $200,000,000,000.00 (Billion) with "No Cap" from BP;
(2.) – $100,000,000.00 (Million) for out-of-work oil riggers impacted by BP catastrophe;
(3.) – Removal of BP from the claims process because they will drag the process;
(4.) – A public apology from BP to the nation from the steps of the White House.
INDEPENDENTS LOVE YOU PRESIDENT, even when Liberal Democrats turn their backs on you and when Republican-GOP lie on you.
This is a joke. The man has no interest in this matter. It took 57 days to meet with bp 57 days... and he has been in charge i ask in charge of what holding a meeting or traveling and spending more money to do nothing and get nothing done. well there is always bush to blame....get rid of him
"Make it an even trillion and lets get Rush and his dittoheads to clean it up,they caused it."
YOU drive a car? YOU caused it!!!!
Obama is the man for the american people it not about talk but action and that is what we need in this country look at the republicans blocking
unemployment and supporting BP for the oil spill by saying that they were being pick on to much can you honestly say they care about you
or are you still uneducated like the tea party
Gawd we are stupid. We are all to blame.
Obama has done nothing but use this to promote his green agenda and his cap and scam bill but the liberals have their heads to far up his butt to realize it. If we could have been drilling on land and shallow water this would not be going on but the far left and tree huggers prevented that. It's not Bush's fault it's the tree huggers and far left's fault.
Sounds like big government to me.. Wonder what "small".. .....government could do?.. Ask a Republican that question.... and at the same time ask them why they do not believe Oil Companies shoud be controlled more instead of just let out without a leach..... Just like their Wall Streeter friends.. et al...So we had small government.... when the Republicans were in power last 8 years... didn't we?.. Huh?
If that amount is offered in the same way as the oil spill numbers were, the final number should be nearer a TRILLION!
Sad SAD days ahead for America,
The American people should thank President Obama for holding BP accountable because I do. The President told the nation last night that he was going to hold BP accountable for this oil mess in the Gulf and he delivered!! Obama told the nation two years ago that he would sign a federal healthcare bill into law before the end of his term and he delivered!! President Obama will go down in history as being one of the best presidents in U.S. history. I plan to vote for him again when he runs for a second term.
THANK YOU MR. PRESIDENT!!
I never heard of a company making a trilion $ profit a year..Is it correct?
Obama seems pretty adament that BP should cleanup its own mess, and I couldn't agree more- there needs to be accountability. But it's been almost two months- BP has already taken the beating it needed and deserved. It is now time for the federal government to become directly involved in the cleanup alongside BP.
It's a 20 billion dollar slush fund that Obama will be managing. The unions will benefit again.
Seems like 86 is on BP side hum......typical rethuggery
The census is budgeted for a decade... This happened 60 days ago... If it wasn't for republicans trying to scare people with overspending then maybe things would be different... Enough said