Obama wants BP to set up escrow account to guarantee funding for claims resulting from BP oil spill
President Obama is demanding that BP be held accountable for ensuing claims resulting from the BP oil spill, and is asking the oil giant to set up an escrow account to guarantee those funds.
President Barack Obama will demand that BP create a special account with "substantial" reserves to pay Gulf oil claims and is readying aid packages for the region, his top political adviser said Sunday.Skip to next paragraph
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Obama, set to visit the Gulf Coast on Monday and Tuesday, also plans an Oval Office address Tuesday night after his return to Washington. He meets at the White House with BP executives, including the oil company's chairman, on Wednesday.
BP's board was to meet on Monday to discuss deferring its second-quarter dividend and putting the money into escrow until the company's liabilities from the spill are known.
"Our mission is to hold them accountable in every appropriate way," Axelrod said.
The White House wants an independent, third party to administer the escrow account and compensate those with "legitimate" claims for damages, he said. The amount of money set aside will be part of the White House discussions, but Axelrod said it should be "substantial."
In addition, the Obama administration will announce several aid packages and the president will make clear in his meeting Wednesday with BP's chairman, Carl-Henric Svanberg, and others about his expectation of BP's responsibility for caring for people affected by the spill.
"They're responsible for it and want to make sure that they meet that responsibility," Axelrod said, adding that Obama believes BP has a legal and moral obligation.
In the meeting, Obama is set to follow the example of some Gulf states, which aim to put the squeeze on the company amid talk of the possibility that BP eventually may file for bankruptcy.
The administration's point man for the oil spill said federal officials may appoint an organization outside BP to administer the escrow fund.
"We've been very concerned about the claims process," he said. "This is not a core function of an oil producing company."
Allen said he is not concerned that BP will go bankrupt and be unable to pay the damage claims.
"They're a company that has got a lot of wealth inside it," he said. "I don't think that's a consideration."