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robmandu's avatar

What does BP get for putting $20bn in escrow?

Asked by robmandu (21331points) June 17th, 2010

That money is ostensibly set aside to pay for things like liability claims and whatnot down the road.

I understand 1) how this makes things easier on plaintiffs to get relief, 2) how this makes the President look good, and 3) that people hate BP right now and like hurting the company financially.

But what I don’t understand is what BP gets out of the deal. Some good press? That doesn’t seem to be working out. The vitriol is being laid on thicker than ever. Some leeway for BP’s CEO with Congress. Nope, that ain’t happening. How about amnesty from future claims beyond the $20bn? Well, of course not.

How does this escrow account do anything to serve BP’s (and its shareholders’) best interests?

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