BP (BP) Hands Feinberg Big Raise

Saying his responsibilities have grown since he began overseeing the claims process of BP's (NYSE:BP) compensation fund, the energy giant announced it has given fund administrator Kenneth Feinberg an increase in compensation from $850,000 to $1.25 million a month.

The White House and BP appointed Feinberg to oversee payments from the fund to individuals and businesses. Since Feinberg took over the payment process, approximately $3.6 billion has been paid out to 172,000 claimants. Other than payments to individuals and businesses, the fund also can be used to pay for environmental damages and state and local response costs, although in those cases Feinberg does not oversee the payments.

The raise in pay was made retroactive to January 15, and extends to the end of 2011.

BP closed Friday at $46.87, gaining $0.06, or 0.13 percent.

BP (BP) Claims Fund, Feinberg Hit with Fraud Lawsuit

The BP (NYSE:BP) $20 billion claims fund and administrator Kenneth Feinberg have been hit with a lawsuit claiming fraud and negligence over distribution of the funds.

A firm called Pinellas Marine Salvage has alleged Gulf Coast Claims Facility and its administrator, Kenneth Feinberg, hasn't acted in the best interests of victims.

Pinellas Marine Salvage, which says Feinberg and the fund "circumvent many of the rights provided to victims of the BP oil spill under the Oil Pollution Act of 1990," is seeking economic, compensatory, and punitive damages in the complaint.

Anyone can file a lawsuit making any claim they want, but so far there hasn't been a shred of evidence Feinberg has willingly of purposefully paid victims of the Gulf spill less than should have been.

As a matter of fact, Feinberg has lamented for a long time that a large percentage of claimants don't have the documentation to prove they are owed what they assert.

Much of this is precipitated by greedy lawyers looking to cash in on the pain of the victims, attempting to smear the overall process in order to pressure claimants to use them to represent them, rather than go through the claims process.

BP's (BP) Feinberg Tells 1,489 Victims to Take it or Leave it

Kenneth Feinberg said he has sent 1,489 offers for final payment to victims of BP Plc’s (NYSE:BP) oil spill, the first round since completion of a methodology for calculating future losses.

Feinberg, who administers a $20 billion claims fund paid by BP, said in an interview today that he also has distributed 466 interim checks since making the payment formula final on Feb. 18. He didn’t disclose the amounts involved.

Lack of documentation for claims continues to be an obstacle to compensation, according to Feinberg, a Washington lawyer. The fund has sent letters to about 130,000 claimants asking for additional documentation to demonstrate losses. So far only 17 percent have responded, he said.

“The absence of substantiation is a huge problem,” Feinberg said.




Full Story

BP (BP) Says Feinberg Paying Too Much for Claims Victims

Kenneth Feinberg, administrator of the $20 billion escrow fund provided by BP (NYSE:BP) for victims of the Gulf of Mexico oil spill, is now under fire from BP for being "too generous" with how he is figuring out what the final payment will be for many claims.

At issue from BP's perspective is Feinberg's assumption of what future losses will be. BP says there are no facts supporting the future losses assumed by Feinberg.

BP notes Feinberg allows for 70 percent in losses for 2011 and 30 percent for 2012, as measured against 2010 losses. It says there are no facts supporting this and the numbers are being inflated.

On the other side of the spectrum, those wishing to make claims or being rejected for claims they made, have accused Feinberg of not giving his reasoning or the process being too slow.

He has said more than once that a major reason for the pace of the process is the people and businesses attempting to game the system, and the large amount of claimants applying for relief.

While there have been a few cases of the government prosecuting those making fraudulent claims, you would think they would be more aggressive in that pursuit, rather than trying to twist the arm of BP and Feinberg to pay out more than they actually owe.

BP (BP) Moratorium Relief Fund to Pay Supply Workers

For the first time since the BP (NYSE:BP) moratorium relief fund was set up, supply worker to oil rigs will be eligible for economic relief.

The $100 million moratorium relief fund shouldn't to be confused with the $20 billion escrow fund of BP's administered by Kenneth Feinberg; they're two separate funds.

Supply workers are those who supply or support workers on the oil rigs.

The suppliers were devastated from the misguided Gulf oil moratorium put in place by Obama in response to the oil spill.

Approximately 9,000 workers may qualify for awards from the fund, with payouts from $3,000 to $30,000.

The fund is administered by the Gulf Coast Restoration & Protection Foundation, and claimants can file for relief online at www.RigReliefGrants.org or by calling 866.577.8141 beginning on March 15.

Parameters for successful filing are people had to be working on May 6, 2010 in direct support of a Gulf deepwater drilling rig to qualify.

Is BP (NYSE:BP) Oil-Spill Fund, Feinberg Criticism Justified?

The more complaints about the compensation fund from BP (NYSE:BP) to pay victims of the oil spill, and Kenneth Feinberg, who administers the fund grow, the appearance they may not be justified grows with them.

While the media focuses on the whining and complaining, few focus on the substance of the complaints.

When you read the stories about whether the process if fair or not, you rarely, if ever, read about specific cases where someone was denied. You just hear about the whining and the fact BP damaged Gulf businesses when the oil well leaked. Who doesn't already know that?

The two alleged problems are lack of transparency and slow pace of the procedures. But some politicians are calling for government oversight, which anyone with a brain knows would slow down the process even more.

Feinberg says this, "It is clear to me that when 90,000 citizens of the Gulf accept a quick payment, it has nothing to do with economic compulsion but is the result of either having been adequately compensated or simply not being able to document any further damage."

The reason I believe Feinberg is telling the truth is it would be extremely easy to counter his assertions by those claiming they aren't being compensated for their losses to show proof of that.

It seems no one is showing proof, but again, just whining that they didn't get anything from the fund. You have to have suffered a real loss to get compensated. How hard is that to understand?

I think what's happening here is people think the BP fund is government money, and are attempting to game the system like many do with tax dollars.

As far as transparency, that seems to come from the apparent lack of explanation as to why people aren't receiving a payout.

But that doesn't seem to fly either. Feinberg has said many times people who get paid require documentation to prove they suffered loss. Simple enough. All people and businesses have to do is prove it.

The schizophrenic side of it is people are now complaining they're being "forced" to accept a quick payout. So you have people complaining the process it too slow while complaining the payout is too quick at the same time. Bizarre to say the least.

It also seems the cash-strapped states may be taking advantage of the BP oil spill and fund in attempts to get money to their disgruntled people by creating a scenario that doesn't exist.

If this was such a big story, there would be tons of people showing the media the paperwork proving they were unjustly denied money by Feinberg.

Until that happens, this isn't a story but a witch hunt. Show the proof or quit writing the nonsense.

This isn't to be sympathetic with BP, as they brought this upon themselves through the lack of oversight of their people and low safety standards.

But that doesn't mean because they caused damage to some that they have to pay money out to all. From these unsubstantiated assertions you would think that's exactly what's expected.

Feinberg Says Gulf Will Recover from BP (NYSE:BP) Oil Spill by 2012

After pouring over as much data he can find on the effects of BP's (NYSE:BP) oil spill on the Gulf of Mexico, Kenneth Feinberg, who oversees the $20 billion compensation fund, said he sees the Gulf recovering by 2012.

Feinberg said by that time the economy should be healthier and the effects of the spill to have dissipated.

Feinberg says, "For every claimant who is eligible other than oyster harvesters, we believe at the GCCF that it is reasonable to conclude full recovery by the end of 2012. There will be gradual recovery over the next two years."

Responding to criticism and uncertainty as to whether or not victims have been properly compensated, Feinberg noted, "If people feel that I have misread the available data or have underestimated the long term data don't take the final payment."

Lawyers have been circling around the victims, attempting to portray Feinberg in a negative light, as they want more of the money the fund offers, which they'll get if victims go that route.

The problem is even if the lawyers win more money for them, after the fees they charge and possibly years down the road, they may get nothing more than they would have received if they deal directly with Feinberg. The only ones getting more money will more than likely be lawyers.

BP (NYSE:BP) closed Monday at $46.54, gaining $0.51, or 1.11 percent.

BP (NYSE:BP) Claims Processor Kenneth Feinberg Asked to be More Responsive by Florida AG

Kenneth Feinberg, who runs the BP (NYSE:BP) claims fund, and is over the claims processing portion of it, was asked to be more responsive and clear about the process in Florida.

Florida's attorney general Pam Bondi said the responses by Feinberg and his team to businesses in Florida is at the top of her agenda.

Part of the clarity aspect probably comes in response to changes Feinberg made when complaints arose, which seems to have clouded the situation, rather than expediate it.

Bondi said, "You are going to see us get a lot more aggressive on that issue. There has to be more transparency in the claims process."

The problem for Feinberg is he just can't reach all the people and businesses to communicate, as he's been holding one meeting after another in attempts to improve the process and listen to complaints.

It seems he may have even said too much, as far as the process itself, which may cause confusion to those attempting to receive money from legitimate claims.

I'm not sure what it is Bondi feels Feinberg is being non-responsive about, as it seems he's continually in the press and meetings discussing the overall fund.

Lawyers Battling Over BP (NYSE:BP), Feinberg Concerning Compensation Fund

Lawyers are starting to fight one another over the BP (NYSE:BP) compensation fund being run by Kenneth Feinberg.

These are lawyers opposing one another, but two groups of lawyers representing plaintiffs.

When you come down to it, regardless of the smokescreen being thrown out by the 17-member plaintiffs' steering committee, it's about them losing business to the compensation fund, as those who make a deal with BP via Feinberg and the fund, aren't allowed to sue BP later on.

In December the lawyers filed a motion asking U.S. District Court Judge Carl Barbier to order Feinberg to make changes to the release form, adding of course that they contact a lawyer before making a permanent decision to accept a final payment.

This is a roundabout way of attempting to force BP, via their release form, to be a marketing arm of the lawyers.

When you consider the 30 to 40 percent the lawyers will extract from the plaintiffs, it's hard to see what benefit, if any, they get from hiring a lawyer, along with the potential long period of time before they see any money at all. How much is that time period being measured in value to the plaintiffs?

After all, what lawyer is going to recommend the plaintiffs to settle with BP via the compensation fund and give up their huge cut?

The other group of lawyers opposing the 17, are actually six firms, who want to keep things running as they are.

While there is a possibility these lawyers may get a cut from any distribution from claims, it isn't necessarily so, and would probably be much less per individual or entity than those who are fighting to get access to every person seeking compensation.

Those working directly with the fund will receive compensation which totally goes to them and not to lawyers.

In the end, this is nothing other than about how much more money the 17 lawyers can get from potential clients.

BP (NYSE:BP) Fund May Need Only Half to Pay Claims

BP (NYSE:BP) fund administrator Kenneth Feinberg said the $20 billion facility may only need about $10 billion to compensate the economic loss of victims of the oil spill in the Gulf of Mexico.

While Feinberg added it is too early to project exact amounts, he feels about $10 billion will be close to taking care of the liabilities.

He's not talking about lawsuits, fines or other payouts, only the economic effect of the spill on individuals and businesses, who the fund was set up to compensate, along with remediation and cleanup costs.

Feinberg stated on Bloomberg television: “It remains to be seen, but I would hope that half that money would be more than enough to pay all the claims.”

So far the fund has paid out close to $2.7 billion to over 170,000 claimants, the majority in temporary payments to cover emergency needs.

Individuals received $5,000 and businesses $25,000.

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.