Uh Huh - So It IS A Liability-Limiting Thing

Uh Huh - So It IS A Liability-Limiting Thing
Posted by Karl Denninger | Market-Ticker

If you're wondering why BP "agreed" to the $20 billion escrow fund, wonder no more....

In the end, one aim of the fund—and a prime reason BP agreed to it—will be to minimize lawsuits against the company. To do that, Mr. Feinberg will offer big lump-sum payments to workers and businesses as an enticement to stay out of court.

"At some point, I will have to make an offer—'You take this amount in full satisfaction of your claim, but only if you waive your right to future litigation,'" Mr. Feinberg said. "And if I package it right, people will see that it makes no sense to fight it out in court."

Ding ding ding ding.

Now there's the reason for it folks.

There was never a reason for BP to agree to this fund unless they got something in return. Now we know what it was - a means to cap off liability claims against the company, which could otherwise bankrupt them.

If you remember, on the 15th BP's head said he had "no intention" of establishing an escrow account - under oath in Congressional testimony.

So what "changed his mind?" Read more.