The $20B going into this account is, unfortunately, the best way to deal with this problem. I am very much a small government person, at least on the domestic front, but there are some circumstances in which the government must take action. This fund is merely going to prop up businesses that are losing everything and can not afford to continue without immediate support. I have no doubt that some of the money will vanish, such are the problems of living in a large nation-state. This fund, however, will not be the end of compensation. BP will pay dearly in the court system (much of it coming in attorney’s fees).
On another note, this whole back and forth mess between us Americans and the British is complete nonsense. BP is no more a British company than Exxon is American. These are international giants, when a bite is taken out of them, the fat comes from the Americas, Europe, Asia... all over. I also despise this talk of the “pensioners” picking up the tab for BP. OF COURSE THEY ARE. That’s the way investment works. While these people may be several layers removed from the decision to invest in BP, they nevertheless have agreed to have their money tied to the fate of the company. Yes, I do feel badly for anyone who loses a significant portion of their retirement, but the stock market is, after all, gambling.
I wonder if you have considered the culpability of the US government in this matter?
President Obama had many opportunities to reduce or even prevent the oil from reaching shore and he chose each and every time to say NO. The government was lax in their regulatory responsibilities.
The government told BP to drill there if they wanted to drill the the Gulf, our government prevented them from drilling in less risky shallow water and on land. The government perceived that the risk (given the liability limit) justified the higher risk and danger.
There are other companies involved other than BP...where is their share?
By law, BP was only responsible for 75 million dollars...they volunteered early on to forego that. Personally, I think it is a mistake.
Our government has insulted horribly our dearest ally and if you bother to read the headlines in Britain you will see many that are saying BP Pensioners Being Forced To Pay Cleanup and such.
Our government has let all business know that when it can it will gut them...it has no regard for the good companies do this nation...it will gut them live when they have the opportunity.
Think about these things a little bit...