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BP (BP) To Place $20 Billion In Fund For Oil Spill

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Finally, BP (BP) investors have some cost certainty. The oil giant has apparently agreed to set aside $20 billion dollars in a fund to help repay oil spill victims. This money will be used to pay fishermen, oil rig employees, and other workers whose livelihood has been affected by the oil spill.

The $20 billion dollar figure is not a cap on BP's liabilities but it does finally place some value on potential claims. As bad as media reports have made it sound, you would think that this is a trillion dollar disaster. Analysts still believe that the disaster will likely not top $75 billion dollars.

Investors seem to approve of the settlement as shares are up slightly in afternoon trading. The good news is that this is a first step to placing a price tag on the oil spill damage.

Posted-In: bp Federal Government Tony HaywardNews Politics

 

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