Obama BP Meeting: Company Agrees To $20 Billion Escrow Account For Victims

You don't understand how this is being structured.



BP isn't putting $20billion into escrow today -- BP is PROMISING to put up $20 billion in portions over 4 years, beginning with $3 billion now, and if they're still in business by the end of the year, another $2billion. BP is self-insuring, just like what it's done in the past:



While BP is the principal developer of the oil field with 65% interest. 25% is owned by AnadarkoPetroleumCorporation, & 10% by a unit of Mitsui.



Anadarko maintains insurance policies designed to provide financial protection for such events, & estimates its coverage will likely total approximately $177.5million, less $15million deductible. Mitsui is believed to have a $45million owner's extra expense policy. Transocean (the drilling contractor) is believed to have $560million of physical damage insurance & some $950million in third party liability insurance, of which $700 million excess of $50 million is thought to cover offshore risks. Cameron (manufacturer of the BOP that failed on the rig) has a $500million liability insurance policy.



And BP's insurance coverage?



About 3 years ago, BP decided that it was being taken for a ride, overcharged for insurance, so it decided "to go bare".



And what's our government's response? "No problem. We've got to stimulate growth & jobs."



None of these corporations has insurance coverage that comes anywhere close to repairing the damage. But they don't have to because they know that our government will bail them out & pass the costs of clean-up onto the American
Read the Article at HuffingtonPost