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BP Payout Rate Quadruples Under Feinberg

From a seemingly surprised Reuters:

BP says oil spill compensation payout rate soars

By Tom Bergin Mon Sep 20, 2010

LONDON (Reuters) – BP said payouts to people affected by its Gulf of Mexico oil spill had dramatically increased since it surrendered authority for dispensing funds to an independent administrator.

What a shock, huh? Who would have thought that Mr. Feinberg would be more generous with BP’s money than BP would be?

BP said the Gulf Coast Claims Facility (GCCF), the $20 billion fund it set up to compensate fishermen, hoteliers and retailers whose business was hit by the spill, had paid out 19,000 claims totaling over $240 million

The GCCF is run by lawyer Kenneth Feinberg, formerly the Obama Administration’s executive pay Czar. BP said on September 3 that the fund had paid out $38.5 million since it began operating on August 23. This represented a rate of around $3.5 million per day, broadly in line with the rate at which BP had previously been disbursing funds.

Since September 3, the amount of money being paid out has risen to an average of over $12.5 million [a day].

So if we are reading this (rather obtuse) article correctly, the rate has almost quadrupled under Mr. Feinberg.

Just over a week ago, Bob Dudley, who will take over as BP’s Chief Executive on October 1, told analysts that he expected the $20 billion fund to more than cover the total valid claims for compensation.

But lest we forget, Mr. Feinberg has previously pronounced that “there’s not enough money in the world” to pay for all of the claims against BP.

And at the rate he is giving away the store, he could turn out to be right.

This article was posted by Steve on Tuesday, September 21st, 2010. Comments are currently closed.

4 Responses to “BP Payout Rate Quadruples Under Feinberg”

  1. Right of the People says:

    I wonder how much of that is going into the Dems campaign slush fund?

    Just sayin’.

    • untrainable says:

      A better question would be how much of this Dem. campaign slush fund will have to be given out in claims. I’m quite sure that the amount going out to valid claims will be dwarfed only by the amount given out for invalid claims, and democrat book cookin’.

      Oh, and when did Feinberg stop being the pay czar? And how can they call this guy independent?

    • Rusty Shackleford says:

      “Independent” means he is staunchly in Obama’s camp, is a socialist and only worked for Bush because he was forced into it.

  2. proreason says:


    Every liberals dream.

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