NEWS ARTICLES | June 20, 2010

Landrieu: $20 billion from BP might not be enough

By Michael O'Brien  |  The Hill

The $20 billion BP will pay into an escrow account to fund claims to victims of the Gulf of Mexico oil spill might not be enough, Sen. Mary Landrieu (D-La.) suggested.

The account, which the company agreed to create under pressure from President Barack Obama and his administration, is a good start, though, said Landrieu.

"Well, we're hoping that's enough, but frankly, I'm not sure," the Louisiana Democrat said Saturday on NPR. "I haven't seen any data from either BP or the White House, nor from any Gulf coast states, to indicate that number is going to be sufficient."

"But at least we can begin with it, and then go forward," she added.

The sizable fund hasn't been without controversy. Republicans have criticized Obama for the pressure he put on the company to set up the account. A conservative leader in the House called it a "Chicago-style political shakedown," while Rep. Joe Barton (R-Texas), a top committee member, drew heavy criticism for apologizing to BP's CEO for the pressure the company faced to set up the fund.

Analysts have also expressed worry that BP's obligations to the fund, along with billions more it may have to pay out, might bankrupt the company. While BP is seen as having the financial wherewithal to afford the $20 billion fund, it's not clear what additional payouts might mean for the company's health.

Landrieu said it was most important to ensure that the claims process was working well in order to ensure timely payouts to victims of the spill, rather than the sie and scope of the fund.

She also said that BP was the last company in the world that her constituents, who are among the hardest-hit by the impacts of the ecological disaster, want to see go bankrupt.

"I saw a poll the other day that said that 79 percent of the people in the country don't really care if BP goes bankrupt. Now I can understand that, because everyone's very angry with BP, including myself and everyone I represent," Landrieu explained. "But, believe me, the last company that the people of Louisiana want to see go bankrupt right now is BP. They need to stay in business long enough to pay us what they owe us, and clean up this environmental degradation."