Close

Feinberg 'Cautiously Optimistic' That $20B May Be More than Enough for BP (BP) for Gulf Claims and Damages - FT

November 22, 2010 5:37 PM EST
Gulf of Mexico Payout Chief and former Auto Czar, Ken Feinberg, says that the $20 billion that BP plc (NYSE: BP) contributed to cover damages from the Deepwater Horizon spill should be enough to cover all damages sustained in the accident.

According to the Financial Times, Feinberg says that he is "cautiously optimistic" that the fund would contain enough money to cover clean-up costs and lost business income, as well as individual claims made on the funds.

He said that life returning to normal in the area (i.e. - fishing, oyster harvesting, etc.) would curb payouts.

Additionally, he said that he would be happy if anywhere close to 97% of all claimees took their payout without legal action.

BP established the $20 billion fund in mid-June per the request of President Obama, though they were granted three-and-one-half years to complete the funding. Any money left in the fund will be reverted to BP.

The news may come as a relief to many invested in BP, who used to anticipate the handsome dividend yield and stability of the company. Shares, having become significantly more volatile since the spill, have begun to regain stability since officially capping the well in August.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Insiders' Blog

Related Entities

Dividend, Barack Obama, Kenneth Feinberg