President Obama Plans to Force BP’s Hand on Oil Spill Fund

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http://www.nytimes.com/2010/06/14/us/14spill.html?hp

President Obama for the first time will address the nation about the ongoing oil disaster in the Gulf of Mexico on Tuesday night and outline his plans to legally force BP executives to create an escrow account reserving billions of dollars to compensate businesses and individuals if the company does not do so on its own, a senior administration official said on Sunday.

“The president will use his legal authority to compel them,” said Robert Gibbs, the White House spokesman.

Mr. Gibbs did not elaborate on the legal basis for such a move but said that White House lawyers have been researching the matter for days. The president is seizing the initiative after reports on Friday from London that BP would voluntarily establish an escrow account — either for compensating victims or for delaying a planned dividend for BP shareholders — turned out to be less certain than the White House initially thought.

The escrow account that the White House envisions would be roughly modeled after the fund established for victims of the terrorist attacks on Sept. 11, 2001, and it would be administered by a third party to provide greater independence and transparency and to guard against the company too narrowly defining who is entitled to payments and how much.

[Mimosa]

1. Yay!

The Brit papers will be howling based on what they've been publishing to date.

If BP isn't forced to wall off money they will divert funds and then go bankrupt, leaving the Gulf coast ruined.

[JoeyT]

2. About bloody time.

Good for him.
The third party is a damned good idea, as long as BP isn't allowed to choose the party or influence them.