Amidst all the mistakes, misspeaks and obvious mechanical malfunctions, BP’s next move is to contribute $20 billion to an escrow account to pay out claims in the Gulf region. This sounds like humanitarianism and accountability, but there is something more sinister here. This is corruption. This is government domination of private business and this is political fundraising.
The account will be wholly controlled by the federal government. Kenneth Feinberg, the Obama administration’s “Pay Czar,” has been placed at the helm of the BP Escrow Fund. Feinberg is an old pro at exerting fed control over some of the largest corporations in the nation: GM, Chrysler, AIG, Bank of America, Citibank and more.
Feinberg stated that BP “has no say in the claims that I declare legitimate and eligible.” BP is handing the Obama administration $20 billion to disburse at will. Obama has appointed yet another czar to handle it, and that czar will hand out billions, under no apparent oversight or legislative appropriation.
The suspect nature of this did not go unnoticed. In congressional hearings last Thursday, Rep. Barton (R-TX) apologized to Tony Hayward for Obama’s “shakedown.” Later, in a typical lack of backbone, the Republican leadership forced Barton to recant and apologize to avoid political upheaval.
Michelle Bachmann of Minnesota warned also, that this might lead to a government takeover of private industry and that BP might become a “permanent ATM” for the federal government. This would be a very keen observation if it were not for the companies already compromised: GM, Chrysler, AIG, Bank of America, and Citibank.
Even Jonathan Weisman of the Wall Street Journal stated BP had some victories, though at first seemingly at a loss. Specifically, they avoided liability for the job losses resulting from Obama’s six-month drilling moratorium and environmental restoration beyond pre-spill conditions. Victory? Those are two conditions unrelated to BP’s actions.
The fund is a desperate maneuver by BP. Any corporation would look at Obama’s history regarding corporations in crisis and try to preempt the ‘a**-kicking’ effect.