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Kenneth Feinberg, overseer of the $20 billion fund for victims of the oil spill, says he will use federal fraud investigators to sniff out bogus claims and protect personal information because "nothing can destroy the credibility of a program quicker than allegations of fraud."
In an interview airing Saturday on Bloomberg Television, Feinberg says his office should be processing claims within about 30 days. The next step, he says in a separate interview with The Financial Times, is to make sure state laws are consistent so all victims are treated fairly.
"How do we deal with a restaurant in Boston that can't get shrimp for its favorite dish or the strip joint in New Orleans where business is off because the fishermen aren't coming in?" Feinberg asks. "... Would your claim be applicable under state and, in this case, maritime law? If the state would recognize it, then I will recognize it. If not, I should not."
In a busy day of interviews and public appearances, Feinberg traveled to LaRose, La., where told an audience it was also important to make sure BP isn't destroyed in the process.
"There is absolutely no sense at all driving BP into bankruptcy," he said, a point he expanded on three days ago in an interview on Fox News:
That would be a horror. If BP ever were — was unable to pay valid claims because of bankruptcy, that would be a disaster for the — for BP, it would be a disaster for the people in the Gulf, it would be a disaster for the economy of the Gulf. I think that is not an option.
And I must say, to those who criticize this fund as somehow driving BP toward the brink, I would only add that this fund is — is, in one sense, a very important lifesaver for BP. ... The alternative is to litigate against BP in court for a decade or more. You don't know if you're going to prevail. You've got to give your lawyer 40 or 40 percent contingency.
It seems to me that this facility — independent facility — is a win for the people of the Gulf and, frankly, a win for BP, as well.
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Impressed, someone who understands the situation and actually makes sense. BP is paying for their mistakes dearly, and will for sometime. There is no excuse for what happened, but, the absolute worst thing that could happen now, is for us as a nation to allow our emotions drive our rhetoric which could push BP into bankruptcy. This would be a disaster for us all. BP must remain viable so the earning potential is there to provide the funds to cover the costs, not forcing them out of business where our tax dollars would have to pay the bill.
You don't have to love BP, but it is in our best interest to support BP so they can have a chance to remain viable and thus pay the bills. Both consumer and government rhetoric certainly has a bearing on how the market reacts regarding BP's stock. The lower their stock goes, the less financial resources they will have to deal with the issues.
One must not forget that our government has a hand in this as well, they set the regulations and provided the oversight to ensure safety. To have the same or similar regulations for a well in 5000' of water as one in 500' of water is ludicrous. The conditions are nowhere near the same.
I work in nuclear power, so I know what it means to be regulated. The industry complained for years about all of the increased oversight following TMI, but what was found, is that the plants placing a high importance on Nuclear Safety, became more efficient and generated more electricity. The same can apply to the oil industry as well.
No I do not own any oil stocks (I might buy some BP if it hits $25), and I know how the Gulf is hurting, my wife's family is from New Orleans (she is 50% Houma Indian), and nearly all of my relatives work in the seafood or oil industry out on the rigs. So yes we are feeling the pain as well, but we should not allow our emotions to chop off the hand that feeds.