BP (NYSE:BP) Fund Will Pay Realtors Says Feinberg

Kenneth Feinberg said to one of his more positive audiences recently that he will set aside $60 million of the $20 billion BP compensation fund for Realtors affected by the Gulf of Mexico oil spill.

While facing hostilities from most quarters over the slow-moving payout system, Feinberg received several standing ovations on Sunday when talking to Realtors at their annual convention.

Originally Feinberg had ruled against putting any of the fund money toward real estate businesses or Realtors.

Feinberg is handling the real estate claims by deferring to Realtor associations in the five Gulf states affected by the oil spill, which are Texas, Louisiana, Mississippi, Alabama, and Florida, to make decisions on distributing the funds.

Because Feinberg is using the $60 million to pay for emergency claims, recipients of the money won't have to sign off on not pursuing other damages in court.

Concerning the effects of the oil drilling moratorium imposed by the Obama administration, Feinberg said he can do nothing to address those consequences, as BP isn't being held liable for Obama's decision, which most feel was an over response to the situation.

Feinberg said, "Most of the Louisiana Realtor claims involve not the spill, but the consequences of the moratorium. There is nothing I can do about those."

Even so, Realtors are appreciative of at least getting some relieve in tough economic times.