Why BP “agreed” to part with $20 billion (a way to screw their victims yet again)

So much for that White House dog-and-pony show, where Obama/Biden seemed to read the Riot Act to BP’s “hangdog” managers. That very public sitdown was just one more stroke of propaganda, meant to give us the impression that Obama’s acting in the public (not the corporate) interest.

MCM

Uh Huh – So It IS A Liability-Limiting Thing
Posted by Karl Denninger in Oil The World at 12:40

If you’re wondering why BP “agreed” to the $20 billion escrow fund, wonder no more….

In the end, one aim of the fund-and a prime reason BP agreed to it-will be to minimize lawsuits against the company. To do that, Mr. Feinberg will offer big lump-sum payments to workers and businesses as an enticement to stay out of court.

“At some point, I will have to make an offer-‘You take this amount in full satisfaction of your claim, but only if you waive your right to future litigation,'” Mr. Feinberg said. “And if I package it right, people will see that it makes no sense to fight it out in court.”

Ding ding ding ding.

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