Topic: Feinberg

The Washington Post reports on a draft memo from Deputy Defense Secretary Steve Feinberg outlining plans for widespread random polygraph testing and mandatory non-disclosure agreements for over 5,000 personnel. These measures aim to staunch leaks within the Office of the Defense Secretary and the Joint Staff.

Congress overrode President Obama's veto of the Justice Against Sponsors of Terrorism Act (JASTA), allowing 9/11 families to sue Saudi Arabia. The discussion touches on the original 9/11 Victim Compensation Fund managed by Kenneth Feinberg, which distributed $7 billion. The new law is seen as a threat to diplomatic relations and a potential catalyst for exposing Saudi financial ties to U.S. entities.

Kenneth Feinberg and his law firm are reportedly receiving $850,000 per month from BP to administer the $20 billion Gulf Coast Claims Facility. The hosts highlight a conflict of interest, noting that the individual responsible for doles out compensation is being paid directly by the company liable for the damages, with no written jurisdictional oversight from the administration.

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's second-quarter financial results show a 34% increase in revenue despite the Gulf oil spill. The hosts explain how a $33 billion write-off for the spill response resulted in a $10 billion tax break for the company. They also discuss the $20 billion escrow fund managed by Kenneth Feinberg, noting that the funds are likely to be deposited in major banks like Goldman Sachs rather than local institutions.

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.

Kenneth Feinberg, the official overseeing executive pay cuts for bailed-out companies, is criticized for his previous role managing the 9/11 Victim Compensation Fund. In that role, he required families to waive their right to sue the government in exchange for payments. Questions are raised about why GE CEO Jeffrey Immelt's pay remains untouched despite GE Capital receiving government bailouts.