Saying his responsibilities have grown since he began overseeing the claims process of BP's (NYSE:BP) compensation fund, the energy giant announced it has given fund administrator Kenneth Feinberg an increase in compensation from $850,000 to $1.25 million a month.
The White House and BP appointed Feinberg to oversee payments from the fund to individuals and businesses. Since Feinberg took over the payment process, approximately $3.6 billion has been paid out to 172,000 claimants. Other than payments to individuals and businesses, the fund also can be used to pay for environmental damages and state and local response costs, although in those cases Feinberg does not oversee the payments.
The raise in pay was made retroactive to January 15, and extends to the end of 2011.
BP closed Friday at $46.87, gaining $0.06, or 0.13 percent.
Showing posts with label Kenneth Feinberg. Show all posts
Showing posts with label Kenneth Feinberg. Show all posts
Monday, March 28, 2011
Tuesday, March 1, 2011
BP (BP) Claims Fund, Feinberg Hit with Fraud Lawsuit
The BP (NYSE:BP) $20 billion claims fund and administrator Kenneth Feinberg have been hit with a lawsuit claiming fraud and negligence over distribution of the funds.
A firm called Pinellas Marine Salvage has alleged Gulf Coast Claims Facility and its administrator, Kenneth Feinberg, hasn't acted in the best interests of victims.
Pinellas Marine Salvage, which says Feinberg and the fund "circumvent many of the rights provided to victims of the BP oil spill under the Oil Pollution Act of 1990," is seeking economic, compensatory, and punitive damages in the complaint.
Anyone can file a lawsuit making any claim they want, but so far there hasn't been a shred of evidence Feinberg has willingly of purposefully paid victims of the Gulf spill less than should have been.
As a matter of fact, Feinberg has lamented for a long time that a large percentage of claimants don't have the documentation to prove they are owed what they assert.
Much of this is precipitated by greedy lawyers looking to cash in on the pain of the victims, attempting to smear the overall process in order to pressure claimants to use them to represent them, rather than go through the claims process.
A firm called Pinellas Marine Salvage has alleged Gulf Coast Claims Facility and its administrator, Kenneth Feinberg, hasn't acted in the best interests of victims.
Pinellas Marine Salvage, which says Feinberg and the fund "circumvent many of the rights provided to victims of the BP oil spill under the Oil Pollution Act of 1990," is seeking economic, compensatory, and punitive damages in the complaint.
Anyone can file a lawsuit making any claim they want, but so far there hasn't been a shred of evidence Feinberg has willingly of purposefully paid victims of the Gulf spill less than should have been.
As a matter of fact, Feinberg has lamented for a long time that a large percentage of claimants don't have the documentation to prove they are owed what they assert.
Much of this is precipitated by greedy lawyers looking to cash in on the pain of the victims, attempting to smear the overall process in order to pressure claimants to use them to represent them, rather than go through the claims process.
Thursday, February 24, 2011
BP's (BP) Feinberg Tells 1,489 Victims to Take it or Leave it
Kenneth Feinberg said he has sent 1,489 offers for final payment to victims of BP Plc’s (NYSE:BP) oil spill, the first round since completion of a methodology for calculating future losses.
Feinberg, who administers a $20 billion claims fund paid by BP, said in an interview today that he also has distributed 466 interim checks since making the payment formula final on Feb. 18. He didn’t disclose the amounts involved.
Lack of documentation for claims continues to be an obstacle to compensation, according to Feinberg, a Washington lawyer. The fund has sent letters to about 130,000 claimants asking for additional documentation to demonstrate losses. So far only 17 percent have responded, he said.
“The absence of substantiation is a huge problem,” Feinberg said.
Full Story
Feinberg, who administers a $20 billion claims fund paid by BP, said in an interview today that he also has distributed 466 interim checks since making the payment formula final on Feb. 18. He didn’t disclose the amounts involved.
Lack of documentation for claims continues to be an obstacle to compensation, according to Feinberg, a Washington lawyer. The fund has sent letters to about 130,000 claimants asking for additional documentation to demonstrate losses. So far only 17 percent have responded, he said.
“The absence of substantiation is a huge problem,” Feinberg said.
Full Story
Friday, February 18, 2011
BP (BP) Says Feinberg Paying Too Much for Claims Victims
Kenneth Feinberg, administrator of the $20 billion escrow fund provided by BP (NYSE:BP) for victims of the Gulf of Mexico oil spill, is now under fire from BP for being "too generous" with how he is figuring out what the final payment will be for many claims.
At issue from BP's perspective is Feinberg's assumption of what future losses will be. BP says there are no facts supporting the future losses assumed by Feinberg.
BP notes Feinberg allows for 70 percent in losses for 2011 and 30 percent for 2012, as measured against 2010 losses. It says there are no facts supporting this and the numbers are being inflated.
On the other side of the spectrum, those wishing to make claims or being rejected for claims they made, have accused Feinberg of not giving his reasoning or the process being too slow.
He has said more than once that a major reason for the pace of the process is the people and businesses attempting to game the system, and the large amount of claimants applying for relief.
While there have been a few cases of the government prosecuting those making fraudulent claims, you would think they would be more aggressive in that pursuit, rather than trying to twist the arm of BP and Feinberg to pay out more than they actually owe.
At issue from BP's perspective is Feinberg's assumption of what future losses will be. BP says there are no facts supporting the future losses assumed by Feinberg.
BP notes Feinberg allows for 70 percent in losses for 2011 and 30 percent for 2012, as measured against 2010 losses. It says there are no facts supporting this and the numbers are being inflated.
On the other side of the spectrum, those wishing to make claims or being rejected for claims they made, have accused Feinberg of not giving his reasoning or the process being too slow.
He has said more than once that a major reason for the pace of the process is the people and businesses attempting to game the system, and the large amount of claimants applying for relief.
While there have been a few cases of the government prosecuting those making fraudulent claims, you would think they would be more aggressive in that pursuit, rather than trying to twist the arm of BP and Feinberg to pay out more than they actually owe.
Thursday, February 17, 2011
BP (BP) Moratorium Relief Fund to Pay Supply Workers
For the first time since the BP (NYSE:BP) moratorium relief fund was set up, supply worker to oil rigs will be eligible for economic relief.
The $100 million moratorium relief fund shouldn't to be confused with the $20 billion escrow fund of BP's administered by Kenneth Feinberg; they're two separate funds.
Supply workers are those who supply or support workers on the oil rigs.
The suppliers were devastated from the misguided Gulf oil moratorium put in place by Obama in response to the oil spill.
Approximately 9,000 workers may qualify for awards from the fund, with payouts from $3,000 to $30,000.
The fund is administered by the Gulf Coast Restoration & Protection Foundation, and claimants can file for relief online at www.RigReliefGrants.org or by calling 866.577.8141 beginning on March 15.
Parameters for successful filing are people had to be working on May 6, 2010 in direct support of a Gulf deepwater drilling rig to qualify.
The $100 million moratorium relief fund shouldn't to be confused with the $20 billion escrow fund of BP's administered by Kenneth Feinberg; they're two separate funds.
Supply workers are those who supply or support workers on the oil rigs.
The suppliers were devastated from the misguided Gulf oil moratorium put in place by Obama in response to the oil spill.
Approximately 9,000 workers may qualify for awards from the fund, with payouts from $3,000 to $30,000.
The fund is administered by the Gulf Coast Restoration & Protection Foundation, and claimants can file for relief online at www.RigReliefGrants.org or by calling 866.577.8141 beginning on March 15.
Parameters for successful filing are people had to be working on May 6, 2010 in direct support of a Gulf deepwater drilling rig to qualify.
Monday, February 14, 2011
Is BP (NYSE:BP) Oil-Spill Fund, Feinberg Criticism Justified?
The more complaints about the compensation fund from BP (NYSE:BP) to pay victims of the oil spill, and Kenneth Feinberg, who administers the fund grow, the appearance they may not be justified grows with them.
While the media focuses on the whining and complaining, few focus on the substance of the complaints.
When you read the stories about whether the process if fair or not, you rarely, if ever, read about specific cases where someone was denied. You just hear about the whining and the fact BP damaged Gulf businesses when the oil well leaked. Who doesn't already know that?
The two alleged problems are lack of transparency and slow pace of the procedures. But some politicians are calling for government oversight, which anyone with a brain knows would slow down the process even more.
Feinberg says this, "It is clear to me that when 90,000 citizens of the Gulf accept a quick payment, it has nothing to do with economic compulsion but is the result of either having been adequately compensated or simply not being able to document any further damage."
The reason I believe Feinberg is telling the truth is it would be extremely easy to counter his assertions by those claiming they aren't being compensated for their losses to show proof of that.
It seems no one is showing proof, but again, just whining that they didn't get anything from the fund. You have to have suffered a real loss to get compensated. How hard is that to understand?
I think what's happening here is people think the BP fund is government money, and are attempting to game the system like many do with tax dollars.
As far as transparency, that seems to come from the apparent lack of explanation as to why people aren't receiving a payout.
But that doesn't seem to fly either. Feinberg has said many times people who get paid require documentation to prove they suffered loss. Simple enough. All people and businesses have to do is prove it.
The schizophrenic side of it is people are now complaining they're being "forced" to accept a quick payout. So you have people complaining the process it too slow while complaining the payout is too quick at the same time. Bizarre to say the least.
It also seems the cash-strapped states may be taking advantage of the BP oil spill and fund in attempts to get money to their disgruntled people by creating a scenario that doesn't exist.
If this was such a big story, there would be tons of people showing the media the paperwork proving they were unjustly denied money by Feinberg.
Until that happens, this isn't a story but a witch hunt. Show the proof or quit writing the nonsense.
This isn't to be sympathetic with BP, as they brought this upon themselves through the lack of oversight of their people and low safety standards.
But that doesn't mean because they caused damage to some that they have to pay money out to all. From these unsubstantiated assertions you would think that's exactly what's expected.
While the media focuses on the whining and complaining, few focus on the substance of the complaints.
When you read the stories about whether the process if fair or not, you rarely, if ever, read about specific cases where someone was denied. You just hear about the whining and the fact BP damaged Gulf businesses when the oil well leaked. Who doesn't already know that?
The two alleged problems are lack of transparency and slow pace of the procedures. But some politicians are calling for government oversight, which anyone with a brain knows would slow down the process even more.
Feinberg says this, "It is clear to me that when 90,000 citizens of the Gulf accept a quick payment, it has nothing to do with economic compulsion but is the result of either having been adequately compensated or simply not being able to document any further damage."
The reason I believe Feinberg is telling the truth is it would be extremely easy to counter his assertions by those claiming they aren't being compensated for their losses to show proof of that.
It seems no one is showing proof, but again, just whining that they didn't get anything from the fund. You have to have suffered a real loss to get compensated. How hard is that to understand?
I think what's happening here is people think the BP fund is government money, and are attempting to game the system like many do with tax dollars.
As far as transparency, that seems to come from the apparent lack of explanation as to why people aren't receiving a payout.
But that doesn't seem to fly either. Feinberg has said many times people who get paid require documentation to prove they suffered loss. Simple enough. All people and businesses have to do is prove it.
The schizophrenic side of it is people are now complaining they're being "forced" to accept a quick payout. So you have people complaining the process it too slow while complaining the payout is too quick at the same time. Bizarre to say the least.
It also seems the cash-strapped states may be taking advantage of the BP oil spill and fund in attempts to get money to their disgruntled people by creating a scenario that doesn't exist.
If this was such a big story, there would be tons of people showing the media the paperwork proving they were unjustly denied money by Feinberg.
Until that happens, this isn't a story but a witch hunt. Show the proof or quit writing the nonsense.
This isn't to be sympathetic with BP, as they brought this upon themselves through the lack of oversight of their people and low safety standards.
But that doesn't mean because they caused damage to some that they have to pay money out to all. From these unsubstantiated assertions you would think that's exactly what's expected.
Tuesday, February 8, 2011
Feinberg Says Gulf Will Recover from BP (NYSE:BP) Oil Spill by 2012
After pouring over as much data he can find on the effects of BP's (NYSE:BP) oil spill on the Gulf of Mexico, Kenneth Feinberg, who oversees the $20 billion compensation fund, said he sees the Gulf recovering by 2012.
Feinberg said by that time the economy should be healthier and the effects of the spill to have dissipated.
Feinberg says, "For every claimant who is eligible other than oyster harvesters, we believe at the GCCF that it is reasonable to conclude full recovery by the end of 2012. There will be gradual recovery over the next two years."
Responding to criticism and uncertainty as to whether or not victims have been properly compensated, Feinberg noted, "If people feel that I have misread the available data or have underestimated the long term data don't take the final payment."
Lawyers have been circling around the victims, attempting to portray Feinberg in a negative light, as they want more of the money the fund offers, which they'll get if victims go that route.
The problem is even if the lawyers win more money for them, after the fees they charge and possibly years down the road, they may get nothing more than they would have received if they deal directly with Feinberg. The only ones getting more money will more than likely be lawyers.
BP (NYSE:BP) closed Monday at $46.54, gaining $0.51, or 1.11 percent.
Feinberg said by that time the economy should be healthier and the effects of the spill to have dissipated.
Feinberg says, "For every claimant who is eligible other than oyster harvesters, we believe at the GCCF that it is reasonable to conclude full recovery by the end of 2012. There will be gradual recovery over the next two years."
Responding to criticism and uncertainty as to whether or not victims have been properly compensated, Feinberg noted, "If people feel that I have misread the available data or have underestimated the long term data don't take the final payment."
Lawyers have been circling around the victims, attempting to portray Feinberg in a negative light, as they want more of the money the fund offers, which they'll get if victims go that route.
The problem is even if the lawyers win more money for them, after the fees they charge and possibly years down the road, they may get nothing more than they would have received if they deal directly with Feinberg. The only ones getting more money will more than likely be lawyers.
BP (NYSE:BP) closed Monday at $46.54, gaining $0.51, or 1.11 percent.
Thursday, January 20, 2011
BP (NYSE:BP) Claims Processor Kenneth Feinberg Asked to be More Responsive by Florida AG
Kenneth Feinberg, who runs the BP (NYSE:BP) claims fund, and is over the claims processing portion of it, was asked to be more responsive and clear about the process in Florida.
Florida's attorney general Pam Bondi said the responses by Feinberg and his team to businesses in Florida is at the top of her agenda.
Part of the clarity aspect probably comes in response to changes Feinberg made when complaints arose, which seems to have clouded the situation, rather than expediate it.
Bondi said, "You are going to see us get a lot more aggressive on that issue. There has to be more transparency in the claims process."
The problem for Feinberg is he just can't reach all the people and businesses to communicate, as he's been holding one meeting after another in attempts to improve the process and listen to complaints.
It seems he may have even said too much, as far as the process itself, which may cause confusion to those attempting to receive money from legitimate claims.
I'm not sure what it is Bondi feels Feinberg is being non-responsive about, as it seems he's continually in the press and meetings discussing the overall fund.
Florida's attorney general Pam Bondi said the responses by Feinberg and his team to businesses in Florida is at the top of her agenda.
Part of the clarity aspect probably comes in response to changes Feinberg made when complaints arose, which seems to have clouded the situation, rather than expediate it.
Bondi said, "You are going to see us get a lot more aggressive on that issue. There has to be more transparency in the claims process."
The problem for Feinberg is he just can't reach all the people and businesses to communicate, as he's been holding one meeting after another in attempts to improve the process and listen to complaints.
It seems he may have even said too much, as far as the process itself, which may cause confusion to those attempting to receive money from legitimate claims.
I'm not sure what it is Bondi feels Feinberg is being non-responsive about, as it seems he's continually in the press and meetings discussing the overall fund.
Tuesday, January 18, 2011
Lawyers Battling Over BP (NYSE:BP), Feinberg Concerning Compensation Fund
Lawyers are starting to fight one another over the BP (NYSE:BP) compensation fund being run by Kenneth Feinberg.
These are lawyers opposing one another, but two groups of lawyers representing plaintiffs.
When you come down to it, regardless of the smokescreen being thrown out by the 17-member plaintiffs' steering committee, it's about them losing business to the compensation fund, as those who make a deal with BP via Feinberg and the fund, aren't allowed to sue BP later on.
In December the lawyers filed a motion asking U.S. District Court Judge Carl Barbier to order Feinberg to make changes to the release form, adding of course that they contact a lawyer before making a permanent decision to accept a final payment.
This is a roundabout way of attempting to force BP, via their release form, to be a marketing arm of the lawyers.
When you consider the 30 to 40 percent the lawyers will extract from the plaintiffs, it's hard to see what benefit, if any, they get from hiring a lawyer, along with the potential long period of time before they see any money at all. How much is that time period being measured in value to the plaintiffs?
After all, what lawyer is going to recommend the plaintiffs to settle with BP via the compensation fund and give up their huge cut?
The other group of lawyers opposing the 17, are actually six firms, who want to keep things running as they are.
While there is a possibility these lawyers may get a cut from any distribution from claims, it isn't necessarily so, and would probably be much less per individual or entity than those who are fighting to get access to every person seeking compensation.
Those working directly with the fund will receive compensation which totally goes to them and not to lawyers.
In the end, this is nothing other than about how much more money the 17 lawyers can get from potential clients.
These are lawyers opposing one another, but two groups of lawyers representing plaintiffs.
When you come down to it, regardless of the smokescreen being thrown out by the 17-member plaintiffs' steering committee, it's about them losing business to the compensation fund, as those who make a deal with BP via Feinberg and the fund, aren't allowed to sue BP later on.
In December the lawyers filed a motion asking U.S. District Court Judge Carl Barbier to order Feinberg to make changes to the release form, adding of course that they contact a lawyer before making a permanent decision to accept a final payment.
This is a roundabout way of attempting to force BP, via their release form, to be a marketing arm of the lawyers.
When you consider the 30 to 40 percent the lawyers will extract from the plaintiffs, it's hard to see what benefit, if any, they get from hiring a lawyer, along with the potential long period of time before they see any money at all. How much is that time period being measured in value to the plaintiffs?
After all, what lawyer is going to recommend the plaintiffs to settle with BP via the compensation fund and give up their huge cut?
The other group of lawyers opposing the 17, are actually six firms, who want to keep things running as they are.
While there is a possibility these lawyers may get a cut from any distribution from claims, it isn't necessarily so, and would probably be much less per individual or entity than those who are fighting to get access to every person seeking compensation.
Those working directly with the fund will receive compensation which totally goes to them and not to lawyers.
In the end, this is nothing other than about how much more money the 17 lawyers can get from potential clients.
Monday, January 3, 2011
BP (NYSE:BP) Fund May Need Only Half to Pay Claims
BP (NYSE:BP) fund administrator Kenneth Feinberg said the $20 billion facility may only need about $10 billion to compensate the economic loss of victims of the oil spill in the Gulf of Mexico.
While Feinberg added it is too early to project exact amounts, he feels about $10 billion will be close to taking care of the liabilities.
He's not talking about lawsuits, fines or other payouts, only the economic effect of the spill on individuals and businesses, who the fund was set up to compensate, along with remediation and cleanup costs.
Feinberg stated on Bloomberg television: “It remains to be seen, but I would hope that half that money would be more than enough to pay all the claims.”
So far the fund has paid out close to $2.7 billion to over 170,000 claimants, the majority in temporary payments to cover emergency needs.
Individuals received $5,000 and businesses $25,000.
While Feinberg added it is too early to project exact amounts, he feels about $10 billion will be close to taking care of the liabilities.
He's not talking about lawsuits, fines or other payouts, only the economic effect of the spill on individuals and businesses, who the fund was set up to compensate, along with remediation and cleanup costs.
Feinberg stated on Bloomberg television: “It remains to be seen, but I would hope that half that money would be more than enough to pay all the claims.”
So far the fund has paid out close to $2.7 billion to over 170,000 claimants, the majority in temporary payments to cover emergency needs.
Individuals received $5,000 and businesses $25,000.
Monday, November 15, 2010
BP (NYSE:BP) Surpasses $500 Million in Gulf Oil Spill Costs
According to reports from congressional auditors, BP Plc (NYSE:BP) has now paid out over $500 million for costs related to the cleanup of the Gulf of Mexico after the oil spill starting from the explosion on the Deepwater Horizon oil rig.
This shouldn't be confused with the Gulf Coast Claims Facility, which is the one run by Kenneth Feinberg and has paid out far more than the over $500 million paid from the federal oil spill fund. The Gulf Coast Claims Facility is the $20 billion fund BP has promised to pay claims out of over a four-year period.
The fund is question is called the Oil Spill Liability Trust Fund, where capital is raised through a tax of 8 cents a barrel of oil.
The Government Accountability Office said that fund is running out of money, and as it stands, can't extract more than $1 billion from any one company over any one incident.
As of the end of September, over $1.6 billion was still in the fund, but concerns are it'll very soon reach the $1 billion limit, and no more funds will be able to be dispersed.
This is the existing rule even if a company reimburses the government fund and there are funds available to pay out.
At this time Congress is thinking about removing the $1 billion cap and introducing legislation which would offer a more flexible cap where the money paid by an oil company over an accident wouldn't be included in the limits now constraining the fund.
This shouldn't be confused with the Gulf Coast Claims Facility, which is the one run by Kenneth Feinberg and has paid out far more than the over $500 million paid from the federal oil spill fund. The Gulf Coast Claims Facility is the $20 billion fund BP has promised to pay claims out of over a four-year period.
The fund is question is called the Oil Spill Liability Trust Fund, where capital is raised through a tax of 8 cents a barrel of oil.
The Government Accountability Office said that fund is running out of money, and as it stands, can't extract more than $1 billion from any one company over any one incident.
As of the end of September, over $1.6 billion was still in the fund, but concerns are it'll very soon reach the $1 billion limit, and no more funds will be able to be dispersed.
This is the existing rule even if a company reimburses the government fund and there are funds available to pay out.
At this time Congress is thinking about removing the $1 billion cap and introducing legislation which would offer a more flexible cap where the money paid by an oil company over an accident wouldn't be included in the limits now constraining the fund.
Monday, November 8, 2010
BP (NYSE:BP) Fund Will Pay Realtors Says Feinberg
Kenneth Feinberg said to one of his more positive audiences recently that he will set aside $60 million of the $20 billion BP compensation fund for Realtors affected by the Gulf of Mexico oil spill.
While facing hostilities from most quarters over the slow-moving payout system, Feinberg received several standing ovations on Sunday when talking to Realtors at their annual convention.
Originally Feinberg had ruled against putting any of the fund money toward real estate businesses or Realtors.
Feinberg is handling the real estate claims by deferring to Realtor associations in the five Gulf states affected by the oil spill, which are Texas, Louisiana, Mississippi, Alabama, and Florida, to make decisions on distributing the funds.
Because Feinberg is using the $60 million to pay for emergency claims, recipients of the money won't have to sign off on not pursuing other damages in court.
Concerning the effects of the oil drilling moratorium imposed by the Obama administration, Feinberg said he can do nothing to address those consequences, as BP isn't being held liable for Obama's decision, which most feel was an over response to the situation.
Feinberg said, "Most of the Louisiana Realtor claims involve not the spill, but the consequences of the moratorium. There is nothing I can do about those."
Even so, Realtors are appreciative of at least getting some relieve in tough economic times.
While facing hostilities from most quarters over the slow-moving payout system, Feinberg received several standing ovations on Sunday when talking to Realtors at their annual convention.
Originally Feinberg had ruled against putting any of the fund money toward real estate businesses or Realtors.
Feinberg is handling the real estate claims by deferring to Realtor associations in the five Gulf states affected by the oil spill, which are Texas, Louisiana, Mississippi, Alabama, and Florida, to make decisions on distributing the funds.
Because Feinberg is using the $60 million to pay for emergency claims, recipients of the money won't have to sign off on not pursuing other damages in court.
Concerning the effects of the oil drilling moratorium imposed by the Obama administration, Feinberg said he can do nothing to address those consequences, as BP isn't being held liable for Obama's decision, which most feel was an over response to the situation.
Feinberg said, "Most of the Louisiana Realtor claims involve not the spill, but the consequences of the moratorium. There is nothing I can do about those."
Even so, Realtors are appreciative of at least getting some relieve in tough economic times.
Monday, October 11, 2010
BP (NYSE:BP) Paying Feinberg and Firm Cool $850,000 Monthly to Run Compensation Fund
In an effort to be more transparent, Kenneth Feinberg revealed the payment he and his firm - Feinberg Rozen LLP - are receiving from BP (NYSE:BP) to run the $20 billion compensation fund to pay victims of the Gulf of Mexico oil spill.
Feinberg said the firm is being paid $850,000 monthly to manage the claims portion of the fund, which started when he accepted the job in the middle of June.
At this time Feinberg hasn't disclosed what he personally is getting for running the fund, but that doesn't seem to be relevant; how could it be?
Someone has to run the fund. And unless someone is going to donate several years of their life for nothing to run it, they're going to get paid for it. Already there's heavy pressure on Feinberg and his team to make things run smoother and quicker, and he's taken a lot of abuse from meetings around the Gulf region with victims waiting for their money.
There's also the fraud factor, which has in fact been one of the major impediments to running the claims process quicker, and this is coming from those who have legitimate claims, but are inflating them to extraordinary levels, which all causes the need to examine documents more closely, if there are any documents at all.
In other words, a lot of the alleged public outcry is manufactured by many who are trying to game the system and are angry their attempts aren't successful.
The implication that Feinberg and his team work for BP means something negative simply makes no sense. It doesn't matter who would've been chosen to run the claims process, they were going to get paid. How is that an issue? How is it even a story?
As far as the compensation to the firm, the $850,000 monthly payment will continue through 2010, and then will be reviewed at that time to make decisions on a contract going forward.
The fund is scheduled to operational for four years.
Feinberg said the firm is being paid $850,000 monthly to manage the claims portion of the fund, which started when he accepted the job in the middle of June.
At this time Feinberg hasn't disclosed what he personally is getting for running the fund, but that doesn't seem to be relevant; how could it be?
Someone has to run the fund. And unless someone is going to donate several years of their life for nothing to run it, they're going to get paid for it. Already there's heavy pressure on Feinberg and his team to make things run smoother and quicker, and he's taken a lot of abuse from meetings around the Gulf region with victims waiting for their money.
There's also the fraud factor, which has in fact been one of the major impediments to running the claims process quicker, and this is coming from those who have legitimate claims, but are inflating them to extraordinary levels, which all causes the need to examine documents more closely, if there are any documents at all.
In other words, a lot of the alleged public outcry is manufactured by many who are trying to game the system and are angry their attempts aren't successful.
The implication that Feinberg and his team work for BP means something negative simply makes no sense. It doesn't matter who would've been chosen to run the claims process, they were going to get paid. How is that an issue? How is it even a story?
As far as the compensation to the firm, the $850,000 monthly payment will continue through 2010, and then will be reviewed at that time to make decisions on a contract going forward.
The fund is scheduled to operational for four years.
Tuesday, October 5, 2010
BP (NYSE:BP) Compensation Fund Slowed by Fraud
The BP (NYSE:BP) compensation fund, which the claimant portion is administered by Kenneth Feinberg, has been demonized because of the alleged slow payments and amounts being handed out.
As the story emerges though, the frustration, while in many cases is legitimate, has been worsened by many who are attempting to game the system by getting paid much more than actual damages, and in many cases, some who don't qualify for damages at all.
That more than anything has been the reason for the slow process, and because there are legitimate claims suffering as a result, makes it hard for Feinberg to defend, because it gives the appearance of not paying out what is owed for legitimate claims.
Major problems in getting the fund to move faster, as mentioned, are outright fraud, requests for money far beyond damages, and absolutely no proof of suffering losses at all.
What would probably stem a lot of this is for the Justice Department or law enforcement to step in and arrest and charge some of those commiting the fraud in order to get the process moving forward.
There are some legitimate complaints related to the fund, but most of them come from those trying to get money they don't deserve, and worse, clogging up the system because of the time it takes to confirm one way or the other if they qualify.
The enormity of the fraud has caused Feinberg and his team to have to check closely in order to make determinations. That's a good thing in the sense of having enough money to pay for legitimate claims.
If Feinberg were to allow the outrageous claims to go forward, it would result in BP paying out damages to those who weren't harmed by the consequences of the oil spill, and also cause them to pay far more than they would have had to.
Someone needs to step in and let those making fraudulent claims know they are being watched and could go to jail for what amounts to theft.
As the story emerges though, the frustration, while in many cases is legitimate, has been worsened by many who are attempting to game the system by getting paid much more than actual damages, and in many cases, some who don't qualify for damages at all.
That more than anything has been the reason for the slow process, and because there are legitimate claims suffering as a result, makes it hard for Feinberg to defend, because it gives the appearance of not paying out what is owed for legitimate claims.
Major problems in getting the fund to move faster, as mentioned, are outright fraud, requests for money far beyond damages, and absolutely no proof of suffering losses at all.
What would probably stem a lot of this is for the Justice Department or law enforcement to step in and arrest and charge some of those commiting the fraud in order to get the process moving forward.
There are some legitimate complaints related to the fund, but most of them come from those trying to get money they don't deserve, and worse, clogging up the system because of the time it takes to confirm one way or the other if they qualify.
The enormity of the fraud has caused Feinberg and his team to have to check closely in order to make determinations. That's a good thing in the sense of having enough money to pay for legitimate claims.
If Feinberg were to allow the outrageous claims to go forward, it would result in BP paying out damages to those who weren't harmed by the consequences of the oil spill, and also cause them to pay far more than they would have had to.
Someone needs to step in and let those making fraudulent claims know they are being watched and could go to jail for what amounts to theft.
Wednesday, September 29, 2010
BP (NYSE:BP) Negotiating with Feds Over Oil Fines
BP (NYSE:BP) has entered into negotiations with the Obama administration over coming to some type of settlement over fines related to the Gulf of Mexico oil spill.
According to Rep. Steve Scalise, R-La., his staff got wind of the discussions when working on legislation related to the oil spill which would keep money from fines paid out by BP in the Gulf region.
Unsurprisingly, the real battle is over whether or not BP will be labeled as being grossly negligent in relationship to the spill.
The problem with that is no study, other than the one conducted by BP, has been conducted to find out the absolute reason behind the accident.
So how could the government be battling over something that there is no conclusion made yet? The only reason BP is in their sights is no company related to the spill has the capital to pay the fines other than them. Of course they also had the largest stake in the well, but that has nothing to do with culpability.
It may surprise people, but BP is in the driver's seat in regard to this issue. If the government doesn't come to an agreement with them, all BP has to do is litigate, and that would take years, essentially holding up any fines being paid out until then, and with no guarantee the government would win the case (in reference to BP being considered grossly negligent).
Just under the Clean Water Act, BP could pay out up to $21 billion. It's doubtful it will ever come to that, as that wouldn't include other fines and the money they'll have to pay out from the hundreds of lawsuits.
Even with the size of BP, they just aren't big enough to pay that kind of money out, which doesn't include the $20 billion escrow fund which has the claims part of the fund administered by Kenneth Feinberg.
There should be a settlement of some sort, but it will depend on how far the Department of Justice wants to take it. If they ask for too much, it may leave BP few options.
Again, the problem is there are no conclusions yet made as to the cause of the disaster, and until that is investigated and discovered, it's hard to see the government has to stand on; at least concerning the decision on whether or not BP was grossly negligent, which is the crux of this particular part of the fine process.
According to Rep. Steve Scalise, R-La., his staff got wind of the discussions when working on legislation related to the oil spill which would keep money from fines paid out by BP in the Gulf region.
Unsurprisingly, the real battle is over whether or not BP will be labeled as being grossly negligent in relationship to the spill.
The problem with that is no study, other than the one conducted by BP, has been conducted to find out the absolute reason behind the accident.
So how could the government be battling over something that there is no conclusion made yet? The only reason BP is in their sights is no company related to the spill has the capital to pay the fines other than them. Of course they also had the largest stake in the well, but that has nothing to do with culpability.
It may surprise people, but BP is in the driver's seat in regard to this issue. If the government doesn't come to an agreement with them, all BP has to do is litigate, and that would take years, essentially holding up any fines being paid out until then, and with no guarantee the government would win the case (in reference to BP being considered grossly negligent).
Just under the Clean Water Act, BP could pay out up to $21 billion. It's doubtful it will ever come to that, as that wouldn't include other fines and the money they'll have to pay out from the hundreds of lawsuits.
Even with the size of BP, they just aren't big enough to pay that kind of money out, which doesn't include the $20 billion escrow fund which has the claims part of the fund administered by Kenneth Feinberg.
There should be a settlement of some sort, but it will depend on how far the Department of Justice wants to take it. If they ask for too much, it may leave BP few options.
Again, the problem is there are no conclusions yet made as to the cause of the disaster, and until that is investigated and discovered, it's hard to see the government has to stand on; at least concerning the decision on whether or not BP was grossly negligent, which is the crux of this particular part of the fine process.
Tuesday, September 21, 2010
BP (NYSE:BP) Fund Administrator Feinberg Says Cleanup Wages Won't be Deducted
Kenneth Feinberg, administrator of the BP (NYSE:BP) compensation fund, said he'll waive the previous requirement for those making claims to the fund of deducting wages earned from BP by helping with the oil spill cleanup.
This has been a point of contention for some time, and it seemed at the beginning there would be no concession at all, but the growing antagonism toward Feinberg and the slow pace of the fund may have had a part in Feinberg's decision.
According to Feinberg, fisherman will be specifically helped by the decision, who helped with the cleanup when they weren't able to fish.
So far the fund has paid out over $240 million on 68,000 claims.
This has been a point of contention for some time, and it seemed at the beginning there would be no concession at all, but the growing antagonism toward Feinberg and the slow pace of the fund may have had a part in Feinberg's decision.
According to Feinberg, fisherman will be specifically helped by the decision, who helped with the cleanup when they weren't able to fish.
So far the fund has paid out over $240 million on 68,000 claims.
Tuesday, September 14, 2010
BP (NYSE:BP), Halliburton (NYSE:HAL), Transocean (NYSE:RIG) Say Gulf Victims Have No Right to Sue Yet
In a filing with the court, BP (NYSE:BP), Halliburton (NYSE:HAL) and Transocean (NYSE:RIG) say the numerous individuals and businesses may not have the right to sue the companies yet over the Gulf oil spill.
According to the court papers, BP and the others said they believe the alleged victims should have to take their claims to the $20 billion compensation fund before bringing a lawsuit against them.
Obviously the strategy of the oil companies is to push the lawsuits toward the escrow fund to deal with the matter in order to decrease the growing number of them.
Most of the types of lawsuits they're talking about are those where claims of economic losses are involved, especially workers and businesses.
The fund, administered by Kenneth Feinberg, would have 90 days to accept or reject a claim, which at that time the claimants could proceed with a lawsuit.
With things moving into the discovery stage and requests for documents and electronic communications being made, the oil companies said the question of the right to sue needs to be decided before they provide all the documentation to plaintiffs.
While the elimination of lawsuits looks like it's in the best interests of the oil companies, in truth, when you consider the fees by lawyers and amount of time it takes for many of these lawsuits to be played out, most of the alleged victims would be far better off taking the money from the escrow fund if they qualify, rather than pursuing lawsuits.
According to the court papers, BP and the others said they believe the alleged victims should have to take their claims to the $20 billion compensation fund before bringing a lawsuit against them.
Obviously the strategy of the oil companies is to push the lawsuits toward the escrow fund to deal with the matter in order to decrease the growing number of them.
Most of the types of lawsuits they're talking about are those where claims of economic losses are involved, especially workers and businesses.
The fund, administered by Kenneth Feinberg, would have 90 days to accept or reject a claim, which at that time the claimants could proceed with a lawsuit.
With things moving into the discovery stage and requests for documents and electronic communications being made, the oil companies said the question of the right to sue needs to be decided before they provide all the documentation to plaintiffs.
While the elimination of lawsuits looks like it's in the best interests of the oil companies, in truth, when you consider the fees by lawyers and amount of time it takes for many of these lawsuits to be played out, most of the alleged victims would be far better off taking the money from the escrow fund if they qualify, rather than pursuing lawsuits.
BP's (NYSE:BP) Bizarre Claims Czar Going to Cave in to Criticism?
It's one thing to attempt to improve the process to pay out claims to alleged victims of the BP (NYSE:BP) oil spill, it's another thing to pay compensation to people for money they've already received, which is what government claims czar Kenneth Feinberg is taking "under advisement."
This is the problem when someone from the government is appointed to oversee money.
The problem centers around claimants who say the money they were paid while working cleaning up the Gulf for BP shouldn't be subtracted from the claims they are seeking.
Feinberg responded, "I'm taking it under advisement. The last time I said, no way, I'm deducting it. Now, it's open for discussion."
It doesn't matter what the actual damage was to the claimants, since when do people get paid for work by a company and then not have it subtracted from claims? It's outrageous.
In other words, when they were getting paid to work, they weren't suffering from being victims of the situation. why would BP have to pay them, or why would Feinberg even say he's going to take it under advisement.
This isn't his money. And while he has authority to pay out legitimate claims, it's improbable he has a right to make these types of decisions, even though he seems to say he does.
Problems with the BP compensation fund aren't whether or not BP is going to have to pay without subtracting money they've already paid, the problem is the process is taking too slow, and alleged discrepancies in what is perceived as similar circumstances are what are making people the most angry.
What about the victims who didn't work for BP and are going to receive the same as those who did work for BP under similar circumstances. How could Feinberg justify paying more to those who already got paid and received compensation?
Hopefully Feinberg won't cave on this, and will hold to his guns. People aren't victims while they were getting paid. Any payment already made should be subtracted from the claims being made.
If they aren't, it's doubtful it would be even legal. That would be like someone getting paid to work, but then collecting unemployment at the same time, while others on unemployment only get the unemployment. This doesn't make any sense, and doing it to placate those attempting to game the system shouldn't be allowed, no matter how hard they scream.
They're playing the victim card too far here, as they weren't victims while they were getting paid to work. How hard is that to understand?
This is the problem when someone from the government is appointed to oversee money.
The problem centers around claimants who say the money they were paid while working cleaning up the Gulf for BP shouldn't be subtracted from the claims they are seeking.
Feinberg responded, "I'm taking it under advisement. The last time I said, no way, I'm deducting it. Now, it's open for discussion."
It doesn't matter what the actual damage was to the claimants, since when do people get paid for work by a company and then not have it subtracted from claims? It's outrageous.
In other words, when they were getting paid to work, they weren't suffering from being victims of the situation. why would BP have to pay them, or why would Feinberg even say he's going to take it under advisement.
This isn't his money. And while he has authority to pay out legitimate claims, it's improbable he has a right to make these types of decisions, even though he seems to say he does.
Problems with the BP compensation fund aren't whether or not BP is going to have to pay without subtracting money they've already paid, the problem is the process is taking too slow, and alleged discrepancies in what is perceived as similar circumstances are what are making people the most angry.
What about the victims who didn't work for BP and are going to receive the same as those who did work for BP under similar circumstances. How could Feinberg justify paying more to those who already got paid and received compensation?
Hopefully Feinberg won't cave on this, and will hold to his guns. People aren't victims while they were getting paid. Any payment already made should be subtracted from the claims being made.
If they aren't, it's doubtful it would be even legal. That would be like someone getting paid to work, but then collecting unemployment at the same time, while others on unemployment only get the unemployment. This doesn't make any sense, and doing it to placate those attempting to game the system shouldn't be allowed, no matter how hard they scream.
They're playing the victim card too far here, as they weren't victims while they were getting paid to work. How hard is that to understand?
Friday, September 3, 2010
BP (NYSE:BP) Gulf Costs Skyrocket to $8 Billion
The costs associated with the BP (NYSE:BP) oil spill have soared to $8 billion in a few short months, and that doesn't include the $20 billion set aside for the escrow fund now being administered by Kenneth Feinberg.
At this pace they'll pay out far more from these costs than the escrow fund, although it has to be taken into consideration they won't be paying out claims any longer because they've transferred to the fund completely.
BP said in a press release, "The cost of the response to date amounts to approximately $8 billion, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs."
Questions are being raised by BP as to whether or not they can continue paying out if they are banned from further drilling in the Gulf of Mexico, which would be the case of legislation is passed which would prohibit them from doing so.
At this pace they'll pay out far more from these costs than the escrow fund, although it has to be taken into consideration they won't be paying out claims any longer because they've transferred to the fund completely.
BP said in a press release, "The cost of the response to date amounts to approximately $8 billion, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs."
Questions are being raised by BP as to whether or not they can continue paying out if they are banned from further drilling in the Gulf of Mexico, which would be the case of legislation is passed which would prohibit them from doing so.
Wednesday, September 1, 2010
Feinberg Say $10 Million Paid in BP (NYSE:BP) Claims
In the first week since launching the BP (NYSE:BP) compensation fund, claims administrator Kenneth Feinberg said almost $10 million was paid out in emergency payments to residents of the Gulf Coast region.
So far, 1,935 emergency claims have been made, primarily for lost profits or earnings to individuals and businesses. The majority of payments were no higher than $5,000, and some dropping as low as a penny.
For those wanting to finalize their claims and bypass litigation, there are over a 1,000 people, according to the Gulf Coast Claims Facility, where the individuals or businesses will have to waive the right to sue BP if they are to receive the payment. At this time no final claims have been paid.
Over 29,000 claims are now under review, and the agency said only one has been denied so far.
Louisiana residents are leading the list for emergency claims, as they took the heaviest hit from the oil spill. They collectively have received close to $4 million, while Florida is next with $2.4 million.
So far, 1,935 emergency claims have been made, primarily for lost profits or earnings to individuals and businesses. The majority of payments were no higher than $5,000, and some dropping as low as a penny.
For those wanting to finalize their claims and bypass litigation, there are over a 1,000 people, according to the Gulf Coast Claims Facility, where the individuals or businesses will have to waive the right to sue BP if they are to receive the payment. At this time no final claims have been paid.
Over 29,000 claims are now under review, and the agency said only one has been denied so far.
Louisiana residents are leading the list for emergency claims, as they took the heaviest hit from the oil spill. They collectively have received close to $4 million, while Florida is next with $2.4 million.
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