Money+Politicians=Happiness
This post is primarily mostly a test of theme I am using for this blog. But, because I need to say something other than “test” several hundred times, I thought that I would write about something topical.
Yesterday, BP Global reached an agreement with the Obama Administration to create a 20 billion dollar fund to provide compensation to businesses and individuals effected by the still ongoing oil spill in the Gulf of Mexico. BP Global further agreed to suspend an impending dividend payment share holders.
According to BP’s own web site “The fund will be available to satisfy legitimate claims including natural resource damages and state and local response costs.”
Whether the fund, which will be administered by Ken Feinberg, will provide needed relief to the beleaguered Gulf Coast residents and businesses is another matter. Mr. Feinberg most recently acted behalf of the Administration as the so called “Wall Street Pay Czar”. Does anyone really really know how that all turned out?
Perhaps I am jaded by my years, but it seems clear to me that the intended beneficiary of this deal is the President himself. You can believe that the President will point to this deal, saying to the American people, “Look, how I have made them pay for what they have done! They have turned over money that I demanded from them; and I have taken money from the pockets of their investors too".
Sounds pretty tough, doesn’t it? I think it was safe to say that BP Global was set to have it’s pants sued off by just about everyone. And, I think it is also a safe bet that most of the claims will be adjudicated in favor of the plaintiffs. I have no doubt that money will be flowing from BP’s pocket for years to come. A whole new flock of lawyers will become wealthy beyond measure.
But what will this fund actually do for those who have been damaged? Will claimants be forced to accept binding arbitration for their claims? Will claimants be forced to settle for pennies on the dollar for their actual losses? Who will determine what constitutes a “legitimate” claim?
Stay tuned, there will definitely be more to come.
