$20B BP Claim fund isn’t what it seems

Remember my basic approach to any BP statement or ad is that it’s not ever completely true. The most recent BP ads tout the $20 billion claim fund that President Obama demanded that BP establish. The ads say that the fund will be administered by an independent overseer.

There is no $20 billion fund. BP will be allowed to fund $5 billion a year over the next four years. The money will be spent almost as quickly as it comes in–so there never will be $20 billion in the fund.

And the fund isn’t only for claims. BP can dip into the fund to pay for its environmental recovery efforts, according to my sources who have met with attorneys working with Ken Feinberg, the administrator of the new fund.

And Feinberg isn’t really independent. He will be paid by the fund…..i.e. BP.

Another game of “Ponies and Balloons.”