3 chapters across the catalog
The $20 billion escrow fund promised by BP for Gulf Coast damages is reportedly being funded through letters of credit from non-American banks like HSBC rather than direct cash transfers. Additionally, Congress voted to end the moratorium on offshore drilling, a move the hosts claim benefits BP by squeezing out smaller competitors who could not afford the 90-day delay. They also note that the original moratorium was based on allegedly falsified scientific testimony.
BP Tax Liability Reduction, GAAP Accounting Benefits
BP's establishment of a $20 billion escrow fund for spill damages is revealed to be a significant tax advantage for the company. Under Generally Accepted Accounting Principles (GAAP), BP can expense the entire $20 billion in a single year, potentially reducing their US tax liability by $7 billion. This effectively results in a massive government-subsidized tax break for the corporation.
BP Escrow Account, Kenneth Feinberg and Jamie Gorelick
The $20 billion fund established by BP is identified as an escrow account rather than a traditional fund, suggesting the terms of payout may be hidden from the public. Kenneth Feinberg, who managed the 9/11 Victims Compensation Fund, is appointed to oversee the payouts, while Jamie Gorelick, a former 9/11 Commission member, serves as BP's lead attorney. The hosts suggest this "cabal" is using the 9/11 playbook to limit BP's liability and prevent future lawsuits.
