On: BP Cancels Dividend to Set Aside $20 Billion for S...

[faramarz]

What if the actual cost ends up ballooning past $20bn? perhaps there was a backroom agreement to cap the liability costs?

[timwiseman → faramarz]

President Obama in his speech specifically said this was not a cap.

Also, even if the administration did hypothetically agree this was a cap it would likely not be binding on the courts without further Congressional action when people brought the lawsuits.

[blantonl → faramarz]

the $20bn is a floor, not a ceiling. This entire regulatory political process is just getting warmed up.

[borism → blantonl]

it's neither a floor, nor ceiling. it's just an estimation.

[Nelson69 → faramarz]

Yeah, I've been waiting for that to leak out.

$20bn seems like a lot for PR, why wouldn't you fight that? Unless there is some sort of cap or some reason. What about the folks taking the pay outs too? I'm sure there is some paperwork to sign before you get a cheque.

Looking at like the Iraq reconstruction funds, I expect that $20bn to be spent in about a month, a lot of folks won't be paid, we won't know where the money goes and it's just going to be gone.