BP Fund Shells Out $5.5 Billion To Gulf Coast Claimants

By Adrianna McGinley

Administrator of the Gulf Coast Claims Facility (GCCF) Kenneth Feinberg announced Thursday before the House Committee on Natural Resources that nearly $5.5 billion has been distrubuted to more than 200,000 claimants. 

The committee heard testimony to gain perspective on the status of the $20 billion fund designated to provide relief to those affected by the April 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

Feinberg said he should be held solely responsible for any complaints or concerns regarding the fund and that these filings not be directed towards the Obama administration.

“Any praise about this program or any criticism about this program really should be directed at me and me alone,” Feinberg said. “The administration has largely taken a complete hands off attitude…BP has in no way interfered with my processing of these claims. I am out there on a limb and if it works thank you and if it fails, I bear the brunt of that criticism.”

He added that he believes the relief fund has been largely successful in processing the hundreds of thousands of claims filed thus far.

“People unhappy with my decisions, either as to eligibility or damage, have gone to the United States Coast Guard under the Oil Pollution Control Act and asked the Coast Guard to review my claim and make an independent determination,” he said. “In every single case, every one, the Coast Guard has agreed with my determination. So I think we’re doing something right.”

Feinberg addressed concerns that only 39 percent of claims have been paid, pointing out that many claimants’ files were regarded as ineligible due to a lack of documentation and location. A number of claimants filed complaints because the business in question fell outside of the funds jurisdiction. Feinberg said that 95 percent of claims have already been processed.

Despite Feinberg’s reassurance, activists from the region are unhappy with the work the relief fund has credited itself with.

Faye Williams, an activist from Operation People for Peace and Michelle Roberts from Advocates for Environmental Human Rights, told reporters many Gulf Coast residents are unhappy with the lack of compensation for those whose health was impacted by the spill and argued that the documentation needed to receive medical compensation were near impossible to meet.

“It’s time now for them to get to the individuals who don’t have CEOs to come in here and represent them,” Williams said.

Former Pay Czar Explains Executive Compensation Process

By Kyle LaFleur- Talk Radio News Service

During an appearance Thursday before the Congressional Oversight Panel for the Troubled Asset Relief Program (TARP), former pay czar Kenneth Feinberg explained that compensation for executives at bailed out companies was based on individual executives’ abilities to avoid unnecessary risks and keep their companies competitive enough to repay TARP obligation

“When making compensation determinations, these principles demanded that I strike a balance between prohibiting excessive compensation and permitting the appropriate competitive compensation to attract talented executives capable of maximizing shareholder value,” Feinberg said in a submitted statement. 

Feinberg, whose tenure as special master for TARP executive compensation lasted from June 2009 to September of this year, was responsible for setting compensation for the “top 25” executives at seven companies including Bank of America, AIG and General Motors. 

“No one can argue against the ‘public interest,’ but in the context of executive pay, it is very difficult to define or measure,” said Congressional Oversight Panel Chairman Sen. Ted Kaufman (D-Del.)

According to Feinberg, by following the principles, Bank of America, Citigroup and Chrysler Financial are already out of the jurisdiction of the special master. Citigroup will still fall under the rules of TARP until it repays its obligation.  

Gulf Coast Tourism Industry May Not Be Compensated

Robert Hune-Kalter - Talk Radio News Service

Gulf Coast Claims Facility Kenneth Feinberg told the Energy and Commerce Committee Tuesday that defining eligibility for adequate compensation of the Gulf Coast tourism industry is a complex issue.

“’What constitutes an eligible claim?’ is a major question here,” Feinberg said. “It’s easy to compensate a motel or a restaurant on the beach where there is oil, you don’t need the wisdom of Solomon for that claim [but] proximity is going to be the problem here.”

Feinberg said the biggest hurdle he is facing concerning tourism claims is defining the distance from oil soaked beaches an entity can be without negating the plausibility of its claim. 

Keith Overton, Senior Vice President of Tradewinds Resort, accused the media industry for falsely reporting that Florida’s beaches are ridden with tar, deterring prospective tourists.

“The media must be held accountable to accurate and fair reporting of the facts regarding this oil spill,” said Overton. “Hold them accountable for sensationalism and inaccuracies that are there.”

Feinberg said the claims facility should be operational in the next few weeks.

“I believe that the blue print that I have established for emergency payments to be paid as quickly as possible should be finished and available this week,” he said.



Feinberg Outlines Reimbursement Process For Gulf Coast Victims

Kenneth Feinberg, the administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund, outlined the process for reimbursing business owners hit hard by the oil spill in the Gulf Coast during his testimony Wednesday before the House Small Business Committee.

Mr. Feinberg said there are two important prerequisites for securing compensation through the fund.

“One, is the claim eligible, is it even appropriate to file a claim.  Even if you have an eligible claim, corroborate it.  You have to corroborate your claim.  You can’t come in and say ‘I’m out of work,’ ‘I’m losing $5 thousand a month, pay me.’  Show me you are out of work,” said Feinberg.

Rep. Vern Buchanan (R-Fla.) asked what can be done for motel and restaurant owners who live in his district, where no tar balls have rolled up on the beaches, but because of perception tourism is down 50 percent.

“This is a very tough issue, I mean there is not enough money in the world to pay every single small business that claims injury no matter where or when,” Feinberg responded.

Feinberg will draw from $20 billion escrow fund established this month to offer small businesses long-term lump sum payments instead of month-to-month emergency payments. There are currently 35 claims locations located in the Gulf Coast Region. Claims can also be filed online.

“I welcome and urge all eligible claimants to file a claim with this facility that has been established under my direction,” Feinburg said. “Anybody, any private individual, or company who feels that they have a valid claim to draw out of this facility, should file a claim.”