Barton Biggs, who helped found the hedge fund Traxis Partners LP, and who runs the fund, said in a Bloomberg interview he believes its too early to invest in BP, saying it's still “too speculative” at this time.
Biggs said in a radio interview, “It’s too speculative for me. Are these people down in the Gulf who aren’t going to be able to fish and their business was fishing, are they going to be able to sue BP for payments for the next 20 years? I don’t know, it’s too hard to call.”
Concerning that, Kenneth Feinberg, who runs the escrow fund set up by BP, that those making claims will have to decide on the spot whether they're going to accept terms offered them. Those who think they can do better will have to sue and take their chances in that way, which would cater to the idea of Biggs concerning long-term liabilities.
We'll have to wait to see how individuals and businesses respond to offers from the escrow fund before we get a clearer picture on the way things will go over time.
There are also the hundreds of lawsuits already filed against BP, which are sure to mount as many join the effort to get a piece of the monetary pie.
Once BP proves they can permanently seal the oil leak, it'll also be a huge step where they can than face and hopefully manage the liabilities they will then face.
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