BP shares trading in New York rose more than 1 per cent on news of the agreement after falling 5 per cent in morning trade. Investors have been looking for clarity in the final bill that BP faces for the spill.
What remains unclear is how BP would pay for the fund, also known as an escrow account, and how its quarterly dividend might be affected.
Obama told Americans in a televised speech that he would demand at Wednesday's White House meeting that BP set aside the money in an independently administered fund to pay for the claims, although he did not specify an amount. Lawmakers though had called for $20 billion to be set aside.
Some U.S. lawmakers have called on the company to suspend payment of the dividend to ensure it has enough money to pay for damages, unnerving investors. On recent visits to the US Gulf coast, Obama has heard complaints from residents that the claims process is too long and complicated and that BP is paying out too little money.
Kenneth Feinberg will administer the BP escrow fund, according to the source. Feinberg was the "pay czar", the official who oversaw compensation for executives at companies that received federal bailout funds. Feinberg also oversaw a compensation fund for victims of the September 11, 2001, attacks on the United States.
No comments:
Post a Comment