The Obama administration's management of the BP oil spill cleanup now appears to be a race for money.
Reports Sunday indicate that President Obama will direct BP to set up an escrow account from which damage claims by individuals and businesses along the Gulf Coast will be paid. If BP refuses, Mr. Obama is prepared to argue that he has the legal authority to force BP's hand, the reports suggest.
The move comes as BP considers whether to pay dividends to its shareholders. Members of Congress including House Speaker Nancy Pelosi have demanded that BP refrain from paying dividends to shareholders at a time when BP has enormous and open-ended financial obligations in the Gulf.
| Since when does she have any say? |
In Britain, however, the dividend payments are a large reason why BP's stock is seen as being so desirable. To delay dividend payments at a time when BP stock has already lost some 40 percent of its value would cast the company into even greater uncertainty. |