The White House and BP tentatively agreed on Wednesday that the oil giant would create a $20 billion fund to pay claims for the worst oil spill in American history.
The fund will be independently run by Kenneth Feinberg, the mediator who oversaw the 9/11 victims compensation fund, according to two people familiar with the deliberations.
The agreement was not final and was still being negotiated when President Obama and his top advisers met on Wednesday morning with BP’s top executives and lawyers. The preliminary terms would give BP several years to deposit the full amount into the fund so it could better manage cash flow, maintain its financial viability and not scare off investors.
The talks have been complicated by the fact that BP’s ultimate liabilities for the cleanup and lost business are unknowable since the two-month-old leak of its well in the Gulf of Mexico could be spewing oil for months more.
To date, BP has spent more than $1 billion on containment, cleanup and claims from the Coast Guard, fishermen, oil workers and other businesses.
Since late last week, the negotiations have been closely held given the market sensitivity for BP, which has seen its stock lose about half its value since the spill.
BP’s next dividend for shareholders is another issue on the table. Some members of Congress have called for blocking any dividend payments, though the legality of such action is in dispute.
The tentative agreement comes a day after Mr Obama addressed the nation.
Showing posts with label President Barack Obama. Show all posts
Showing posts with label President Barack Obama. Show all posts
Thursday, June 17, 2010
Wednesday, February 3, 2010
Obama still plans to meet Dalai
President Barack Obama still plans to meet with the Dalai Lama despite a warning from Beijing that a meeting with the exiled Tibetan religious leader could hit US-China relations, the White House said.
"The president told China's leaders during his trip last year that he would meet with the Dalai Lama and he intends to do so," Deputy Press Secretary Bill Burton told reporters aboard Air Force One Tuesday on way to Nashua, New Hampshire.
"The Dalai Lama is an internationally respected religious and cultural leader, and the president will meet him in that capacity," he said.
"To be clear, the US considers Tibet to be a part of China and we have human rights concerns about the treatment of Tibetans," Burton said urging "the government of China to protect the unique cultural and religious traditions of Tibet."
Although a date for the meeting has not been announced, Burton emphasised that the White House expects to continue maintaining a positive relationship with China despite the protests against the meeting with the Dalai Lama.
"[As] the president has expressed, we expect that our relationship with China is mature enough where we can work out issues of mutual concerns such as climate, the global economy, and non-proliferation, and discuss frankly and candidly those issues where we disagree," Burton said.
"The president is committed to building a positive, comprehensive and cooperative relationship with China."
At the State Department spokesman Philip J. Crowley, taking note of the White House comments said: " The Chinese have made clear their views regarding meetings with the Dalai Lama, regarding arms sales to Taiwan.
"And I think what we're clearly indicating is that we will continue to follow our national interest just as we would expect China to follow its national interest."
"We continue to have a broad and deep relationship with China," Crowley said. "You have two of the most powerful nations on earth, and our interests coincide in many areas and our interests collide occasionally in a handful of those.
"And we work through them and will continue to work through them, through the kind of ongoing dialogue that has characterised our interaction with China since the Obama Administration came to office," Crowley said.
"The president told China's leaders during his trip last year that he would meet with the Dalai Lama and he intends to do so," Deputy Press Secretary Bill Burton told reporters aboard Air Force One Tuesday on way to Nashua, New Hampshire.
"The Dalai Lama is an internationally respected religious and cultural leader, and the president will meet him in that capacity," he said.
"To be clear, the US considers Tibet to be a part of China and we have human rights concerns about the treatment of Tibetans," Burton said urging "the government of China to protect the unique cultural and religious traditions of Tibet."
Although a date for the meeting has not been announced, Burton emphasised that the White House expects to continue maintaining a positive relationship with China despite the protests against the meeting with the Dalai Lama.
"[As] the president has expressed, we expect that our relationship with China is mature enough where we can work out issues of mutual concerns such as climate, the global economy, and non-proliferation, and discuss frankly and candidly those issues where we disagree," Burton said.
"The president is committed to building a positive, comprehensive and cooperative relationship with China."
At the State Department spokesman Philip J. Crowley, taking note of the White House comments said: " The Chinese have made clear their views regarding meetings with the Dalai Lama, regarding arms sales to Taiwan.
"And I think what we're clearly indicating is that we will continue to follow our national interest just as we would expect China to follow its national interest."
"We continue to have a broad and deep relationship with China," Crowley said. "You have two of the most powerful nations on earth, and our interests coincide in many areas and our interests collide occasionally in a handful of those.
"And we work through them and will continue to work through them, through the kind of ongoing dialogue that has characterised our interaction with China since the Obama Administration came to office," Crowley said.
