Guess who’s getting more money in the Gulf?
If you guessed claimants, you don’t read this blog too often, but if you guessed Feinberg…you win! And what do you win?
Your very own gift-wrapped box of anger and frustration.
Just announced, Feinberg and his law firm had their rate of pay increased from $850,000 dollars a month to $1.25 million dollars. Obviously because of the good job he is doing…you know, for British Petroleum.
For claimants? Um, not so much…so says Orange Beach Mayor Anthony Kennon, “He has performed poorly, and I’m being polite, and yet they are giving him a raise…the real question is, how does BP view his performance? They are giving him a raise, so they must think it’s good. That speaks for itself.”
Well, I’ve got another number that speaks for itself.
Three, as in three days.
Feinberg loves to crow about the $3.6 billion dollars already paid out by the GCCF in the Gulf, but the average final payment accepted by Gulf Coast residents is a mere $12,000 dollars, an amount meant to cover all present and future damages. And now, $12,000 dollars is also the amount British Petroleum will pay every three days to Ken Feinberg and his law firm for all their outstanding service.
So why the $400,000 dollar per month raise?
In what would seem an attempt to give himself cover, Feinberg requested that US Attorney General Michael Mukasey explain the increased compensation, and the AG stated it is his belief that the extra money is warranted because Feinberg’s duties have grown.
Maybe…but I’ve got other possible explanations:
Feinberg has said that he figures only half of the $20 billion dollar escrow account set up by BP to pay claims in the Gulf Coast will be necessary, which of course means the other $10 billion dollars will be given back to British Petroleum. He denied 310,000 EAP claims outright and with the final and interim claims, he continues his demands for more and more documentation while also inferring claimants are being fraudulent.
Also, Feinberg set up a quick pay scheme that not only takes advantage of financial desperation, like the final claims, it requires claimants to waive their right to sue British Petroleum. This, while the claims process crawls along so slowly it has lead many to believe it’s a concerted effort to increase said desperation so claimants will accept whatever offer the GCCF makes, even if it is not nearly enough. Finally, Feinberg was able to find a scientist who believes that the Gulf will be recovered by next year, despite much evidence to the contrary, and he then proceeded to base his calculations upon this 2012 estimate, an estimate suggested as inconclusive and subject to change by the very scientist who wrote it.
Is all that worth a $400,000 dollar raise?
Not for me to say, but it would appear British Petroleum thinks so.
Hell, one might even say they are banking on it.
Read the article:
Have a nice day.