"BP will (mostly) cave to White House demand for escrow account"

[Clio the Leo]

BP will (mostly) cave to White House demand for escrow account

A bunch of readers have asked whether the White House is really on solid ground in asserting that it has the legal authority to force BP to set up a massive escrow account to handle the claims of people and businesses impacted by the spill.

In the press gaggle today, Bill Burton asserted to reporters that the White House does indeed have that authority, without going into great detail.

But in a sense this all may be beside the point: It's highly unlikely that BP will allow this to come to a legal confrontation. BP will mostly cave on the White House's demand.

Keep in mind that the announcement of Obama's demand for an escrow account comes in advance of BP's high stakes meeting at the White House on Wednesday. It also comes as behind-the-scenes negotiations between both parties continue. The bombshell about the escrow account is all about boxing BP in. It's all about making it impossible for BP to refuse the White House's demand.


http://voices.washingtonpost.com/plum-line/2010/06/legal_authority_bp_will_mostly.html

[CoffeeCat]

1. I think BP owes EVERY citizen on this planet...

We've all endured pain and suffering just watching that oil
gush. The HD video is the stuff of nightmares.

We are all owed.

They destroyed our home. You come into my home and you mess
everything up--you pay.

Fork it over BP.

And major kudos to Obama for "boxing in" these corporate criminals.

Well played.

[flyarm]

2. In other news: Obama appoints Charles Manson to investigate Sharon Tate murder! eom

[Cha]

3. I see it's the same ol shit from

haters who have nothing better to think of than stupid references to manson killings. Know where their uglyness comes from.

[Bragi]

4. An escrow account? What a pathetic demand.

Like how hard is it to set up an escrow account? And what company would see having to do that as their hill to die on?

That is a meaningless demand from the White House.

Maybe Obama will take even harsher steps in his speech tomorrow night and "demand" that BP produce "reports" and even "documents".

I am beginning to see the contours of tomorrow's speech. Tough talk followed by well-negotiated meaningless demands of BP, followed by an announcement that drilling will resume in the Gulf.

This is awful.