NYT editorial: BP Begins to Ante Up

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Editorial

BP Begins to Ante Up

Given the size of the disaster in the Gulf of Mexico, we suspect that $20 billion may not be enough to compensate all of the people whose lives and futures have been derailed by the spill. But it’s a good start.

It took days of very public pressure from President Obama and countless hours of private negotiations, but BP finally agreed on Wednesday to put $20 billion in an independently managed compensation fund. After meeting with the company’s top executives at the White House, Mr. Obama stressed that the amount is not a ceiling on BP’s obligations, which by some estimates could exceed $40 billion when the costs of cleaning the spill and restoring the gulf’s damaged ecosystem are also factored in.

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Having $20 billion in guarantees should reassure the spill’s victims, and all Americans, that BP will not be able to walk away from its responsibilities. It is also reassuring that the fund will be managed by Kenneth Feinberg, a veteran administrator who won high marks for overseeing the 9/11 victims’ compensation fund.

Mr. Feinberg’s task then — determining the value of a life, in nearly 3,000 cases — was extraordinarily daunting. This one will involve many more claims from many more people. There is not a lot of time for Mr. Feinberg to get up to speed. BP is currently handling individual claims and has been criticized for uneven treatment and not responding quickly enough to people who could be weeks or even days away from losing their businesses.

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1. Thanks for this..Kenneth Feinberg is a

fascinating kind a guy.

And this..

"Mr. Obama stressed that the amount is not a ceiling on BP’s obligations, which by some estimates could exceed $40 billion when the costs of cleaning the spill and restoring the gulf’s damaged ecosystem are also factored in."