How Much Will BP Pay and How?

The NYTimes reports that BP has agreed to set aside $20 billion for a compensation fund.  Ken Feinberg will be the independent administrator.   In the last ten years Feinberg has become the gold-standard of mediators and administrators. 

If you're worried about whether BP can pay, its operations garnered $27.7 billion in cash last year. It had about $24 billion in debt with a debt to equity ratio of 20%. 

The NYTimes feature Room for Debate addresses the oil spill today with entries by the following:

• Zygmunt Plater, environmental law professor
• Alice Schroeder, former regulator, Financial Accounting Standards Board
• Kate Gordon, Center for American Progress
• Richard Nagareda, law professor
• Alex Tabarrok, economics professor
• Noah Hall, environmental law professor

ADL