WRT the claims, that is legal decision on the part of BP. What they are doing is simply paying out any claim (with proper documentation) of less than $5000 (IIRC) within about 4-5 days. Which makes sense. $5000 is around the daily rate for a single attorney. Larger claims are processed differently.
I’m certain that’s false. Someone has to make a decision about whether the claim is legitimate. They’re not just paying every documented claim of damage based on someone’s theory about how the spill harmed them.
Some people will submit claims that are obviously legitimate, like people who own property directly damaged by oil or who work as shrimpers in damaged areas; some people will submit claims that are clearly illegitimate, like tourists who planned to visit the Gulf and had bought plane tickets and want a refund; and some will submit claims in the middle, like people who work on oil rigs owned by other companies who cannot work because of the moratorium. The claims processor has to decide which claims are legitimate, and which are illegitimate. And people with claims in the gray area who are denied will not like the decision.
With this plan, they blame the government, instead of BP.
Nah, the anger on the right here looks to be in the same class as their anger over Saddam’s involvement in 9/11 before the 2003 invasion.
That belief still isn’t dead.
The fund is good for BP. They are allowed to pretend they care about the damage they caused and hope to convince the people that they are going to make things right. Exxon showed how much they really care, as did Bhopal.
The tax code allows BP to take off the costs as a business loss. They will be able to write it off .
Of course they are evaluating each claim for legitimacy. Do a search for “ESIS”. They are the company BP has commissioned to handle the claims. You can find more specific info there.
Here is a link to BP’s claim site.
Is it important for you that they care? Or that they just pay for the clean-up?
The Republican argument is that Obama’s administration is going beyond collecting legitimate damages from BP and expanding their attack on big business in general (particularly oil). They believe that this is ultimately bad for the country as it will destroy businesses and jobs and weaken the economy. Of course, as you eliminate private sector jobs, that means the government must support even more people which means higher taxes.
So then what was your point when you wrote, “What they are doing is simply paying out any claim (with proper documentation) of less than $5000 (IIRC) within about 4-5 days.” You seemed to be responding to my argument that the government-run fund is better for BP because any anger at denial of claims will be directed against the government.
This argument doesn’t hold much water for me (no pun intended). That’s not to say I don’t feel bad for the workers, but sometimes businesses just go under. If they had followed the rules to begin with and followed the proper procedures BP wouldn’t be in the mess it’s in right now.
And besides I didn’t see too many conservatives shedding a tear for the workers or associated small businesses when GM was in dire straights last year. In fact their attitude was quite the opposite.
Of course my statement is speculation. That’s why I used the word ‘assume’
So we should be taking any measures necessary to prevent those small businesses, like shrimp boats and the many facets of the tourism industry, from failing through no fault of their own. If we don’t get money up front from BP, then all of those wonderful magical private sector employers won’t have enough money to tide them through until the cleanup is complete, they’ll all fail, and they’ll take America down with them. So from the Republican point of view, this fund is clearly essential, and must be expedited in every way.
That is not in question. You’ve stipulated so yourself.:rolleyes:
Certainly well in excess of $20B, making this fund a down payment on money that BP will surely pay, and without having to divert much if any to the lawyers.
And they aren’t doing so now, no matter what Rush tells you. :rolleyes:
I’d like to know how in the living hell Obama could force an escrow account into being? He might be able to negotiate one, for the good of US citizens but negotiation doesn’t equal force. Did he threaten BP with a midnight visit from the boys from Chicago?
I realize this is probably the best thing for those directly affected. No question they will get their hands on some money much quicker this way (I assume…I read that BP was handing out money but the process was complicated). Nonetheless, once the money is in the escrow account BP has no say who gets what or how much. AND their liability is not limited by what was paid from the fund. I get your point that any claim in court would subtract any funds already received but I still don’t see what BP gets from this type of arrangement. The ONLY advantage I can imagine is BP can’t be blamed if the distribution of funds is delayed or screwed up.
Now, that being said, I understand that there is a corporate cap on economic liability of $75 million in the event of a spill. I’m not clear if this is the total amount that BP is required to pay out for all economic damage or for the total environmental damage. Nonetheless the number is very low and it appears it would benefit BP to demand to only be held responsible for this amount, but hand out money to those affected for goodwill. BP would not risk bankruptcy and would probably be perceived as equally good or bad as they will be following Obama’s plan. So, this makes me wonder whether BP was threatened with criminal liability, or civil liability that could result in bankruptcy, if they did not place the $20B in the escrow account.
What makes you think BP would get no say? They can agree to the types of allowable claims to be paid out of the fund. If there’s ultimately a lawsuit to resolve their liability, they can point to money paid out of the fund to reduce or eliminate certain claims against them, and they could make counterclaims to recoup any money that was paid out that shouldn’t have been.
I read that they kick in 5 billion immediately, then 1 .25 bill per quarter until they reach 20.
There is no evidence whatsoever that Obama threatened BP or could do so. I tire of those who pretend that he did. It is so Rushian to make such unsubstantiated claims. Obama does not have anything to threaten BP with. He has the power of the office to get them to sit down. Then he has to convince them it is in their interests. In case you have not noticed, BP is the focus of a lot of hate. This package would go a long way toward softening their image.
I don’t claim that there is any evidence. But, having Holder threaten criminal or civil action makes me wonder if that was held over their head. BP could have distributed the money without government involvement so I don’t see an advantage as far as public image is concerned.
Just to be clear…if government legal action is taken then my argument has no basis. Alternatively, if no action is taken then it could not be proven that the government decided against it due to BP setting up the account. There is no way to prove that the government threatened BP. But, it seems that the creation of the fund is a win for the administration and BP seems to get nothing in return if no threat or no offer not to take action was made.
You may very well be correct but I’ve seen nothing to suggest that BP has any say concerning the funds once they are deposited into the escrow account. If anyone has seen something concerning this please post a link.
How do you know he demanded the money? That is just a repub talking point. If he did ,they could say no and put it out that the prez was strong arming them and try to achieve some measure of sympathy.
This fund is the best PR that BP could get. They already admitted the spill was their fault and they were totally responsible. What defense could they mount with that out in the public?
So far, it is the only mitigating PR they have had. BP has handled every thing clumsily and have tried to shield the oil soaked animals and beaches from the public. They hired guards to keep people and reporters away. They have failed to stop the flow. In congress last week ,the other oil companies left them on their own by saying BP acted recklessly and did things they would never do.BP needed this fund. Then their exec jetted off to a yachting race. BP does not understand PR.
Truth to tell, I’ve probably walked away from it. The Republicans used to be the voice of conservatism. Now they are just a hollow shell at best. They should never have abandoned conservative principles, and they should NEVER have gotten in bed with the religious whackos.
No. What I was trying to say is that, to the public, the appearance is Obama telling BP to set up the fund. Most people have no clue that the President cannot demand this. So, Obama looks strong publicly and BP looks like they are being told what to do by the administration. I don’t see how that appearance helps BP’s image one bit.
Won’t someone please think of the DUMMIES? 