Patterico's Pontifications

6/16/2010

BP Agrees to $20B Fund

Filed under: Obama — DRJ @ 10:17 am



[Guest post by DRJ]

In its meeting at the White House today, BP has reportedly agreed to a $20 billion fund to be administered by the President’s Pay Czar:

“BP will set aside $20 billion to pay the victims of the massive oil spill in the Gulf, senior administration officials said Wednesday, a move made under pressure by the White House as the company copes with causing the worst environmental disaster in U.S. history.

The independent fund will be led by lawyer Kenneth Feinberg, who oversaw payments to families of victims of the Sept. 11, 2001, terrorist attacks. In his current role, Feinberg is known as Obama’s “pay czar,” setting salary limits for companies getting the most aid from a $700 billion government bailout fund.”

Feinberg has been the President’s pit bull on matters such as the AIG bonuses, salary caps for Wall Street executives including mid-level workers, executive pay caps at bailed out banks, and bankruptcy lawyer compensation.

BP has, not surprisingly, given in so I guess this is another lost opportunity to find out whether the Pay Czar is constitutional.

— DRJ

24 Responses to “BP Agrees to $20B Fund”

  1. Another slush fund for The One!

    Have Blue (854a6e)

  2. Does this mean that BP is agreeing to bail out Baracky and his disasterous idea to issue a moratorium on drilling? Why in the hell would they agree to pay for Barcky’s political autocratic decision?!

    JD (4b684a)

  3. Bad move on BP’s part. I doubt the $20 billion caps their liability, they’ll remain liable for any damages over that amount. By handing off control, the amount paid per claim is likely to be higher than it would be if BP were handling it themselves (people are always more generous when they’re spending someone else’s money). It won’t make the demagogues in Congress quiet down. It won’t lead to Obama reversing his hold on drilling.

    So, other than panic, why do it?

    steve (369bc6)

  4. I wondered during the speech what the constitutional basis was for the government ordering BP to put money in escrow like this.

    aphrael (e0cdc9)

  5. aphrael – Nobody seems to ask that question. Nobody. They assert it, so it must be.

    steve – If this “independent” czar makes BP pay for Teh One’s political choices, is there any indication that BP will have any mechanism to contest that?

    JD (4b684a)

  6. its like the war on terror. Don’t solve the actual problem. just be ready to help the victims. sigh.

    Aaron Worthing (b1db52)

  7. Rush just chortled that this now puts the “Slow Pay” problem entirely within the White House.

    AD - RtR/OS! (eef339)

  8. Notice how much time is being spent on taking billions from BP, and advancing Tax&Destroy, as opposed to fixing the damn problem.

    I still cannot believe that BP would agree to pay for his misguided political decisions.

    JD (4b684a)

  9. This ensures that the damage claims will total AT LEAST $20B. Every aggrieved party, knowing that the pot is anted with $20B, is going to grab for it until it’s all gone.

    My major impression of BHO’s speech last nite was: “My, that all sounds _expensive_.” And so it is.

    gp (72be5d)

  10. You feed the dragon hoping that it will eat you last.

    AD - RtR/OS! (eef339)

  11. Good point, AW. Now they cannot blame BP, though it doesn’t really take that much time to blow through other people’s money, as noted above.

    JD (4b684a)

  12. And you know that a bunch of that money is going to go to “environmental education and outreach,” “grassroots community mitigation efforts,” tinpot commissions and panels and taskforces and “study groups,” and all their f’n lawyers.

    gp (72be5d)

  13. I want to know who is watching the “pay czar”. And how much is he getting paid?

    PatAZ (9d1bb3)

  14. Hey, this is completely off topic, but big hollywood makes a compelling case that when Perez Hilton distributed upskirt pictures of Miley Cyrus, that he violated the child porn statutes.

    http://bighollywood.breitbart.com/bshapiro/2010/06/15/breaking-perez-hilton-could-get-up-to-36-years-in-prison/#more-361414

    But i wonder if he can get away with a first amendment defense that it was nonetheless newsworthy. its worth noting that the surpreme court has taken a very strict approach on child porn, but based on the theory that to create it you necessarily have to abuse a child. That’s not true, here, and where it isn’t, like in the case of computer generated child porn (involving no actual children, in other words), the supreme court has opted for a more classic obsenity approach.

    But i will fully confess, i am not fully versed in all of the jurisprudence in this area.

    Aaron Worthing (e7d72e)

  15. There’s no question that our thugly cowardly president told BP that we would destroy them unless they obeyed.

    The British people should boycott all American products until our little country’s cowardly thug street trash president learns to behave in the manner the world had become accustomed I think.

    happyfeet (71f55e)

  16. happyfeet, what’s interesting is that America is as invested in BP (40% of the company) as the UK is.

    They are critical to Britain’s finances, but a lot of Americans are just as invested.

    I agree with you that Obama bullied them into forgoing their legal rights. Obama is playing the Chicago game here. I wonder if some at BP are perfectly happy with that. They are hardcore democrat and perhaps don’t mind losing their shareholder’s money, keeping theirs, and promoting cap and tax.

    All the while, Petrobas is really reaping the rewards of the entire approach Obama has been taking.

    Dustin (b54cdc)

  17. Oh my, BP’s Chairman says he cares about “the small people.”

    It turns out that no one likes to be called “small.”

    http://news.yahoo.com/s/ap/20100616/ap_on_bi_ge/us_bp_small_people_4

    btw, bp founded the lobbying organization pushing for cap and trade. so obama last night basically said, “bad bp. bad, bad, baaad bp. but let’s follow their policy proposals.”

    Aaron Worthing (e7d72e)

  18. The BP ones have already amply demonstrated their essentially cowardly nature by not shouldering responsibility for their accident and allowing our sad little dictator to make the case that he needed to shut down all new drilling cause of the cause of the accident was such a mystery even Nobel homo Chu was perplexed in his Nobel homo head.

    But it’s not the fag-ass Brits’ character I’m worried about it’s ours, and it turns out our character isn’t at all what I had been raised to believe it to be.

    happyfeet (71f55e)

  19. distribute someone
    else’s cash to third parties
    core of liberals

    ColonelHaiku (523269)

  20. “Nice little company you have there….”

    Kevin Murphy (805c5b)

  21. happyfeet,

    Nobel homo … Nobel homo head … fag-ass

    was that necessary?

    aphrael (e0cdc9)

  22. Do BP stockholders have any recourse?

    JD (4b684a)

  23. So, BP has set up a $20 billion fund for damages and remediation. That’s 20 times $1,000,000,000,000 in American dollars.

    It’s hard to keep up, but the current national debt is around $13 trillion. That’s a debt load on every taxpayer of about $118,000 and by that I mean someone who is making a contribution to society. Fortunately, national assets are around $73 trillion.

    My only point is when you start to get to dollars more than a billion and try to extrapolate them to the worth of labor necessary to make the dollars real, it seems to me, you run into problems.

    And it really doesn’t matter if happy says someone is a homo, because the worth of a dollar means nothing when googol is the answer.

    Ag80 (1b8eea)

  24. AG80: $ 20 billion is the annual salary of 200,000 workers making $100,000 a year.

    And I find happy’s use of ‘homo’ to be somewhat offensive, which is why I asked him about it.

    aphrael (73ebe9)


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