How in the world did Kenneth Feinberg's legal firm - Feinberg Rozen LLP - get to oversee the BP (NYSE:BP) escrow fund. It's ridiculous and suspect that he is granted the czar power he has and is able to exercise that power through his own law firm.
Feinberg Rozen has been laughably called an independent intermediary in its relationship to the fund, as Feinberg has already stated he's going to award claimants in a way that would error to their benefit. How is that independent? It isn't of course.
The process is completely one-sided, as BP will have no say in the claims process whatsoever, and Feinberg's firm will decide which claims are legitimate or not and how much of it will be paid via the fund.
That leaves it to be a very subjective operation, which could be used in any way by czar Feinberg to club BP with costs that could be very dubious at best.
Either way, to allow Feinberg to oversee the fund through his own law firm is a conflict of interest that shouldn't have been allowed to happen.
3 comments:
It is now 21 years and 3 months since the Exxon Valdez spill, and Exxon has not paid the judgement yet! Is this court system preferable? Many of the plaintiffs have died since the spill.
RK...corporate CEO (non-oil)
Where is the conflict of interest?
Agree with above. You haven't actually pointed to a conflict of interest. A conflict of interest would be, for example, if Mr. Feinberg owned BP stock, or owned oceanfront property in Florida.
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