#BP fails to put money in promised escrow account

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In a deal negotiated last month, President Obama and BP officials agreed the company would pay $5 billion annually over the next four years into an escrow account for damage its oil disaster in the Gulf of Mexico caused. Ken Feinberg, who was appointed to administer oil spill claims out of the escrow fund, has said he “hasn’t been able to start writing claims checks” because BP PLC has failed to deposit any money into the $20 billion fund it promised to create:

Feinberg, who was appointed to administer oil spill claims out of the fund, said he doesn’t have the authority to force BP to deposit the money, but his hands are tied until it does. “I don’t want the checks to bounce,” he said.

The day after the escrow account’s establishment in June, BP CEO Tony Hayward told Congress that BP is “unwavering in our commitment to fulfill all our responsibilities” and the company “won’t stop spending until the job is done.”

Peter Schorsch is the President of Extensive Enterprises and is the publisher of some of Florida’s most influential new media websites, including SaintPetersBlog.com, FloridaPolitics.com, ContextFlorida.com, and Sunburn, the morning read of what’s hot in Florida politics. SaintPetersBlog has for three years running been ranked by the Washington Post as the best state-based blog in Florida. In addition to his publishing efforts, Peter is a political consultant to several of the state’s largest governmental affairs and public relations firms. Peter lives in St. Petersburg with his wife, Michelle, and their daughter, Ella.