The Cost of an Accident – Your Reputation and $20 Billion Dollars
BP has agreed to set aside $20 Billion Dollars in a fund to be administered by lawyer Kenneth Feinberg (who is now the TARP Fund Pay Czar). BP will pay the $20 Billion in installments over the next four years. The $20 Billion is not a cap and BP could be asked to pay more before things are all over. Also, the $20 Billion does not include fines or civil penalties.
BP has also announced that they will suspend paying dividends for 2010 (saving $5 Billion) and reconsider them in 2011.