Showing posts with label escrow account. Show all posts
Showing posts with label escrow account. Show all posts

Friday, June 25, 2010

Palin encourages followers to read column warning that the BP escrow fund could lead to a Nazi-like dictatorship.

By Alex Seitz-Wald

Former Alaska Gov. Sarah Palin (R) lashed out at White House Chief of Staff Rahm Emanuel on Twitter earlier this week, telling him “u lie” for saying that many Republicans agree with Rep. Joe Barton (R-TX) that the White House shook down BP to create a $20 billion escrow fund to help Gulf families. Of course, Barton’s sentiment is not unique among conservatives, as Palin herself proved today. Taking to Twitter once again, Palin urged, “GOP: Don’t let the lamestream media suck you into ‘they’re defending BP over Gulf spill victims’ bs…” She followed up by urging her followers to “read Thomas Sowell’s article,” which compares President Obama to Hitler:

Palin3

If followers click on the link they will see that Sowell, under the headline, “Is U.S. Now On Slippery Slope To Tyranny?” argues that the escrow fund is just like the Enabling Act, which “gave Hitler dictatorial powers that were used for things going far beyond the relief of the German people — indeed, powers that ultimately brought a rain of destruction down on the German people and on others.” On Tuesday, Rep. Louie Gohmert (R-TX) endorsed Sowell’s ludicrous Hitler-Obama comparison on House floor, calling the columnist “brilliant,” before quoting several lines from the piece. “It’s difficult to overstate how absurd all of this is,” Political Correction noted.

M.C.L comment: I said this yesterday when right wingers want to attack the president they go to the fields and find a couple of black "conservatives" that's willingly to do the dirty work for them. And the conservatives will go see here's a BLACK guy saying something negative against your BLACK guy. If you got a right wing friend(why would you?) or a right wing relative expect to see a Uncle Thomas Sowell article in your email box or Facebook wall in the upcoming weeks.

Thursday, June 17, 2010

Joe Barton to BP: ‘I apologize’ for the White House ‘shakedown.’

By Brad Johnson

During a hearing of the House Energy and Commerce Committee this morning, Rep. Joe Barton (R-TX) “apologize[d]” to BP CEO Tony Hayward, accusing the White House of an illegal “shakedown” of the foreign oil giant to secure a $20 billion escrow fund for Gulf Coast damages. Barton repeated the Republican attack that the escrow fund is a result of a White House “shakedown” that contravenes “due process,” saying that he was “ashamed” and would “go to jail” if he abused his elected powers similarly. Although he admitted that BP was liable for the billions of dollars of damages to the American people caused by its catastrophic oil disaster, Barton said “I apologize” that BP had to establish this “slush fund,” which he called “a tragedy of the first proportion”:

BARTON: I’m speaking totally for myself, I’m not speaking for the Republican Party, I’m not speaking for anybody in the House of Representatives but myself. But I’m ashamed of what happened in the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterize as a shakedown, in this case a $20 billion shakedown — with the Attorney General of the United States who is legitimately conducting a criminal investigation and has every right to do so to protect the interests of the American people — participating in what amounts to a $20 billion slush fund that is unprecedented in our nation’s history, that’s got no legal standing, which I think sets a terrible precedent for the future.

If I called you into my office, and I had the subcommittee chairman Mr. Stupak with me, who was legitimately conducting an oversight investigation on your company, and said if you put so many millions of dollars in a project in my congressional district, I could go to jail and should go to jail. Now, there is no question that British Petroleum owns this lease, that BP made decisions that objective people think compromise safety. There is no question that BP is liable for the damages. But we have a due process system where we go through hearings, in some cases court cases, litigation and determine what those damages are and when those damages should be paid.

So I’m only speaking for myself, I’m not speaking for anybody else, but I apologize, I do not want to live in a country where anytime a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is again in my words amounts to a shakedown. So I apologize.

Watch it:

The “slush fund” will not be managed by the federal government or BP, but an independent third party, funded over four years with a small fraction of BP’s annual revenues. Barton has taken $1.4 million from the oil and gas industry, including $27,350 from BP. In Barton’s world, it seems that the small people have to pay for their mistakes, but companies don’t.

Update White House Press Secretary Robert Gibbs responded to Barton's comment, calling it "shameful" that he "seems to have more concern for big corporations that caused this disaster than the fishermen, small business owners and communities whose lives have been devastated by the destruction. Congressman Barton may think that a fund to compensate these Americans is a ‘tragedy’, but most Americans know that the real tragedy is what the men and women of the Gulf Coast are going through right now. Members from both parties should repudiate his comments."
Update By calling the Gulf Coast relief money a "slush fund," Joe Barton was following the lead of conservative thinker Rush Limbaugh and other right-wing pundits, Media Matters notes.
Update Nate Silver points out that Barton's top corporate donor is a partner of BP on Deepwater Horizon.
Update The New York Daily News adds:
Barton is also one of Big Oil's biggest boosters and once touted off-shore drilling as so advanced it can function around the clock "without so much as losing a gum wrapper over the side of the platform." Before his election to Congress, Barton was an executive with ARCO, which was later acquired by BP. He has taken $1.4 million in campaign contributions from the industry since 1989, according to the Center for Responsive Politics. Barton's backers have been political action committees and employees of Anadarko Petroleum, Exxon Mobil and Valero Energy, the watchdog group reported.

More GOP Lawmakers Hop On Bandwagon To Smear $20 Billion Escrow Fund As ‘Chicago Style Shakedown’

By Lee Fang

Last night, the Republican Study Committee (RSC), the largest caucus of Republican House members, fired off a statement declaring that the $20 billion dollar negotiated by BP and the Obama administration for victims of the oil catastrophe in the gulf is a “Chicago-Style Political Shakedown.” Echoing this sentiment, Rep. Joe Barton (R-TX) told BP executives that he is “sorry” for Obama’s “shakedown” of their company.

This morning, ThinkProgress traveled to Capitol Hill to interview lawmakers about the escrow fund. Several members of Congress, like Rep. John Fleming (R-LA) and Rep. Jim Jordan (R-OH), agreed with the RSC’s criticism of the fund. Even though Fleming’s home state of Louisiana has been devastated by BP’s spill, Fleming attacked the administration for not trusting BP and for daring to “take control of all the money from BP.” Asked about Barton’s apology to BP, Rep. Devin Nunes (R-CA) said any lawmaker has a right to “do what they want”:

TP: He announced the $20 billion dollar escrow fund, funded by BP, to compensate some of the victims of this catastrophe. The Republican Study Committee put out a press release last night saying it’s a Chicago style power grab, do you agree with that sentiment?

FLEMING: I do because what we have seen from this administration is whenever something like this happens — look at automotive industry, financial industry — what they do is take control of dollars then they begin to disperse them along political agendas. And we’ve seen this happen before, and it looks like its the development here. BP has said, time and time again, that they will process all legitimate claims, we have no reason to believe they won’t. Why does the administration feel like it’s got to take control of all the money from BP?

TP: So Congressman, the Republican Study Committee last night said that the $20 billion dollar escrow fund is just another Chicago style politics kind of power grab. Do you agree with that, do you think that’s a fair characterization?

JORDAN: I’m, look, I’m always worried about this unprecedented involvement by the government in the private sector and look, BP obviously made some mistakes, but do we really believe the Federal government is going to do a better job?

TP: What do you think about Joe Barton in the hearing this morning, he said ‘I apologize’ to the BP executives for the escrow fund, saying again it’s a shakedown [...] Do you have any kind of reaction to a member of Congress apologizing to BP executives?

NUNES: Look, every member of Congress represents seven, eight hundred thousand people and they can do what they want.

Watch it:

The apology from Barton does not appear to be a “gaffe” — rather, it seems like a genuine belief held by conservatives and much of the Republican Party that no matter the crime committed by BP or another major corporation, any effort to conduct oversight for the victims is somehow a government “shakedown.” Rep. Michele Bachmann (R-MN) made a similar argument as Fleming, explaining that the escrow fund for BP’s victims is just another Obama effort to “redistribute the wealth.” As Steve Benen notes, Dick Armey, Rand Paul (R-KY), Sharron Angle (R-NV), Gov. Haley Barbour (R-MS) and the Heritage Foundation have all attacked Obama for daring to interfere with “private businesses” even during one of the greatest environmental and economic disasters in modern America.

This knee-jerk defense of big business isn’t confined to BP or the oil spill disaster. During the health reform debate, conservative lawmakers, like Sen. Pat Roberts (R-KS), quickly came to the defense of health insurance companies fighting against reform.

Wednesday, June 16, 2010

Barbour Is Concerned That Escrow Account Will Cut Into BP’s Profits: ‘It Bothers Me’

By Ben Armbruster

The Obama administration announced this week that it wants BP to transfer “substantial” funds to an escrow account overseen by an independent third party that will handle claims from individuals and businesses affected by the company’s oil disaster in the Gulf of Mexico. “We need to make sure that the interests of people in the Gulf are protected,” senior White House adviser David Axelrod said on Sunday. Congressional Democrats have asked BP to create a $20 billion fund.

Sticking with the “Obama is a socialist” meme, Rep. Michele Bachmann (R-MN) called the account a “redistribution of wealth fund.” Mississippi Gov. Haley Barbour (R) also thinks it is a bad idea. Although he noted on Fox News last night that BP is “saying that they have the ability to pay and that they will pay,” Barbour expressed concern that BP will lose some profits:

BARBOUR: If BP is the responsible party under the law, they’re to pay for everything. I do worry that this idea of making them make a huge escrow fund is going to make it less likely that they’ll pay for everything. They need their capital to drill wells. They need their capital to produce income. … But this escrow bothers me that it’s going to make them less able to pay us what they owe us. And that concerns me. … [I]t bothers me to talk about causing an escrow to be made, which will — which makes it less likely that they’ll make the income that they need to pay us.

Watch it:

Of course, the whole point of the escrow account is to assure that BP — not the taxpayer — is on the hook for the Gulf oil disaster bill. Despite CEO Tony Hayward’s recent claim that the oil giant has paid every claim, BP has actually paid fewer than half and has been less than transparent about the process.

It’s unclear why Barbour is so worried about BP not having enough funds for the account. The company made $163 billion in profits from 2001 through 2009 and nearly $6 billion in the first quarter of 2010 alone. As the Washington Post noted, in the early days of the spill, BP paid $17.5 million per day while the company made on average $93 million per day in the first quarter.

In fact, throughout the oil spill disaster, Barbour has come to BP’s defense, downplaying its impact, blaming the media for his state’s economic woes, and even encouraging tourists to come to Mississippi’s oil contaminated beaches. “BP has never said no to any requests we have made,” he said. “I’m not going to complain.” Indeed, Barbour probably won’t complain because he owes the oil and gas industry for his rise in politics.