Without the 20 billion dollar account...

...many of those making claims might be rejected by BP and never get paid.

...those that sue might not get a judgement for as long as 20 years.

...BP might declare bankruptcy and not pay anything to anyone.

...BP was still only required to pay 75 million.

Of course, this may not be enough. But, it is a start. And, it will be controlled by someone other than BP.

Remember, 20 billion is still a lot of money; enough to give 40,000 families or individuals $500,000 a piece.

Here's hoping that no deals were made, and this money is to be used for claims only.

Would BP still be liable? Or would it say "Hey, we've established an account to help affected individuals and families. No more!"

If this disaster continues for years or decades, what happens then?

they feel it will legally let them off the hook for damages beyond that $20b.

Lets just say theres likely more to their sudden generosity than we're being told.

and volunteered to pay the 100 million for rig workers who will be out of the work moratorium.

They are liable for it. They even publicly said as much that they will take the responsibility. The 20Bn escrow account was set up to give the President confidence that BP will follow through on their promises. Not to get off the hook.

You have some very good ones.

Here are some more. (from DailyKos)

"What happens if $20 billion is not enough? Despite hopes that we will contain 90 percent of the leak in the next couple of weeks, the well is still leaking, and there's no guarantee that things won't get worse before they get better, nor is there a guarantee on how long it will be leaking. (According to Chuck Todd, this issue remains the subject of negotiations between the adminstration and BP.)"

"Why does BP need several years to deposit funds? BP's combined profits over the last four years exceed $80 billion."

"Will this fund also cover cleanup costs, or is it solely for economic damage claims?"

"Will people who apply for compensation through the fund be required to relinquish their right to pursue claims in court?"

"Once out of the political crosshairs, could BP weasel out of its obligations, either by declaring bankruptcy or simply refusing to pay?"

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My point though, is that this 20 billion is "guaranteed".

20 billion that won't be controlled by BP, is a lot more than 75 million, and can be used "now" (not in 20 years) to help those most in need.

You shouldn't listen to Chuck Todd. It's said the No cap is to ensure that BP meets the payment requirements if this exceeds 20bn.

They need several years because their profits does include handing out dividends and they have to liquidate a bit of their assets. Plus bad publicity will cause dropped shareholders in future. It's a cyclical thing that happens. This is why it becomes a problem. Because of this, don't think BP's profit will rise for the next 2 years or so. They'll be dealing with heavy sanctions and dealing with updating all their stuff because of this situation and trying to avoid it in future.

The fund covers clean-up costs is my understanding. 20 bn meets many demands as far as I know or as implied by the President.

That second to last one is a good question and I'd like to know. But Obama has said that his first priority is the people of the gulf---which would mean I doubt that he would include that condition.

It can't weasel it's way out. Eric Holder was in the room and this probably has contract signatures to ensure it's legality. You don't through in Eric Holder in a room for show.

Also, this doesn't have anything to do with the other penalties.

BP is obviously going to have to pay for the clean up.

If BP ends up on the hook for more, they'll have to pay it out. 20 billion is just the starting point.

He also said this fund did not include any of the costs for environmental damage.

Eric Holder was in the room. BP is liable for all damages. They will face criminal charges if they default on this. There is no cap on the fund, the President reiterated this. And if the disaster continues----hence the NO CAP.

I sure as hell hope it was their insurance company...or ANYONE besides the U.S. taxpayers.

and they are expecting to sell 10 billion in assets to make the payments. They made 70 billion in profits last year. They can do this all on their own.

BTW, there is no insurance company that covers oil well drilling. These companies "self insure" by posting bonds.

is your last name Williams?

The President rightly went for the bird in the hand while leaving plenty of room to come back for more. But had he held out for more - making the perfect the enemy of the good - the people who need the help the most would have been held hostage and left with nothing for who knows how long.