Amid much hoopla, President Obama recently announced that BP would put $20 billion into a fund to compensate victims of its oil spill.
That sounds good until one realizes, according to BP’s 2009 annual report, owner’s equity in BP is a little over $101 billion, all of which should be available to compensate victims of BP’s negligence. Total revenue and income for BP was over $246 billion in 2009 alone, down slightly from $367 billion in ’08. So this diverts less than 10 percent of one year’s revenue into the compensation fund.
Luckily, the courts, rather than the president, will …