Digital Media Center
Bryant-Denny Stadium, Gate 61
920 Paul Bryant Drive
Tuscaloosa, AL 35487-0370
(800) 654-4262

© 2024 Alabama Public Radio
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

BP Agrees To $20 Billion Fund To Help Gulf Victims

DEBORAH AMOS, Host:

It's MORNING EDITION from NPR News. I'm Deborah Amos.

STEVE INSKEEP, Host:

The escrow fund for taking care of Gulf Coast damages brings to mind the government's fund for the financial bailout. Nobody really knows how much it will cost to fix the problem so they've chosen a very large number to start.

AMOS: NPR's John Ydstie reports.

JOHN YDSTIE: BP has said all along it will compensate businesses and individuals harmed by the oil spill. President Obama says the escrow fund provides a financial and legal framework to make sure that happens.

BARACK OBAMA: This $20 billion will provide substantial assurance that the claims people and businesses have will be honored. It's also important to emphasize this is not a cap. The people of the Gulf have my commitment that BP will meet its obligations to them.

YDSTIE: BP chairman Carl-Henric Svanberg, speaking in the White House driveway after the meeting, said the agreement should give the American people confidence that BP means what it says.

CARL: We will look after the people affected. And we will repair the environmental damage to this region and to the economy.

YDSTIE: In his post-meeting remarks, the president addressed those people directly.

OBAMA: So if you or your business has suffered an economic loss as a result of this spill, you'll be eligible to file a claim for part of this $20 billion.

YDSTIE: Steve Roady, an attorney at Earthjustice, a public interest law firm, says the president does.

STEVE ROADY: I think the government has a very strong case that they have the authority to require the responsible party to pay all the costs, especially with a disaster like this.

YDSTIE: But, says Cohen, BP had other reasons to acquiesce to the president's call for an escrow fund.

MARK COHEN: You know, they have an enormous public relations problem. They're trying very hard to work through that. Realistically, they're looking at $20 billion and saying, we're going to have to pay one way or the other. And I think they're acting - you know, it's just an attempt for them to show some good faith.

YDSTIE: John Ydstie, NPR News, Washington. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

John Ydstie has covered the economy, Wall Street, and the Federal Reserve at NPR for nearly three decades. Over the years, NPR has also employed Ydstie's reporting skills to cover major stories like the aftermath of Sept. 11, Hurricane Katrina, the Jack Abramoff lobbying scandal, and the implementation of the Affordable Care Act. He was a lead reporter in NPR's coverage of the global financial crisis and the Great Recession, as well as the network's coverage of President Trump's economic policies. Ydstie has also been a guest host on the NPR news programs Morning Edition, All Things Considered, and Weekend Edition. Ydstie stepped back from full-time reporting in late 2018, but plans to continue to contribute to NPR through part-time assignments and work on special projects.
News from Alabama Public Radio is a public service in association with the University of Alabama. We depend on your help to keep our programming on the air and online. Please consider supporting the news you rely on with a donation today. Every contribution, no matter the size, propels our vital coverage. Thank you.