Florida AG Demands $2.5 Billion In Escrow From BP

Tyler Durden's picture

Florida AG Bill McCollum has officially escalated the BP fiasco to the next level. In a post on his website today, McCollum announces that  he has "sent a letter to BP asking the company to deposit no less than $2.5 billion into an interest-earning escrow account so Florida can be assured of its availability to the state and its citizens and businesses over the long-term recovery period." And now that BP is perceived as the surrogate replacement of the "all free lunch all you can eat" US government, McCollum concludes: “Based on recent estimates from an economist, Florida could ultimately see losses as great as $2.2 billion, as well as a sharp decline in employment in the industries directly impacted by the Deepwater Horizon oil spill. As Florida braces for what will likely be a staggering blow to its economy with significant impacts to our state’s workforce and the revenues of the state and local governments, it is essential that BP establish immediately a dedicated escrow account solely for the purpose of paying claims and damages to Florida and its citizens.” In other news, the Florida economy is strong and vibrant according to the Beige book.

Full letter:


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cossack55's picture

I'm already seeing the "Reap the Whirlwind" ride at DisWor.  Maybe misters that spray black water to get a good feel on those hot summer days.

chumbawamba's picture

Oh god, that is too funny.  Sad, but funny.

I am Chumbawamba.

chumbawamba's picture

Aw, fuck it, it's just funny.

I am Chumbawamba.

SilverIsKing's picture

It's a trick!

The Florida AG wants them to deposit the $2.5 billion into one of Florida's "finest" banking institutions and the next week, they will be closed down by the FDIC.

I then see Goldman Sachs entering into a loss share agreement with the FDIC on that one.

truont's picture

McCollum announces that  he has "sent a letter to BP asking the company to deposit no less than $2.5 billion

Now THERE'S an optimist!

Someone has been breathing too much Corexit fumes, methinks...

RichardENixon's picture

Yea I'm guessing they'll deposit a little bit more just to look like good sports.


I need more asshats's picture

That's funny. It's one way to throw some funds at the states budget crisis.... Who's the escrow agent? The Attorney General themselves?

JLee2027's picture

AG's countrywide are trying to become little Gods. Here in Maryland the AG tried to legalize same sex marriage just by issuing his opinion on the matter. No legislature voting or actual voters needed.  Sickening.

Citizen of an IKEA World's picture

McCollum is waxing populist just now, desperate to politicize this thing to help his Senate chances, which are suddenly imperiled by a nobody.



Millivanilli's picture

BP just wrote back.


Dear Bill,

We'll let a Supermajor eat our dead corpse before we pay you up front.   In conclusion, FUCK YOU.




PS  We have a battalion of litigators ready to do battle for YEARS.   Given your current economic situation we predict the state of Florida will be bankrupt before a decision is handed down.  Yuk yuk yuk...

Snidley Whipsnae's picture

Florida is already BK...Florida simply does a better job of PR than Cal, Nv, Ill, Mich, et al, of hiding insolvency.

Recent announcement from a local Orlando tv newscast...'contractor stopped construction on two major road expansions because contractor ran out of money'. Duh...

Hephasteus's picture

Me too. I'm going to need to escrow 40 bucks from them to pay for my increased crab salad costs.

Gordon_Gekko's picture

For a corrupt to the core corporation like BP, $2.5 Billion is too less an amount.

StarvingLion's picture

I've done my bit.  Started up the 'Pelicans against BP' charity.  99 cents of every dollar will go to me. 

chumbawamba's picture

Plus all the dead pelicans a starving lion can eat.

I am Chumbawamba.

chumbawamba's picture

What a fucking wuss.  Send the god damn Florida National Guard to raid BP's HQ and take every top level exec prisoner.  Florida can create its own version of Gitmo on one of the less nice keys (the one soon to be surrounded by a thick slime of oil).

These politicians are fucking morons (not a revelation, I know).  They should be getting in front of every camera they can find and screaming at the top of their lungs for the head of Tony Hayward.

I am Chumbawamba.

Mad Max's picture

Last I checked BP's US headquarters were in Chicago... that could get really entertaining.  I can just picture Daley coming out and asking the CPD to arrest all those National Guardsmen, on the basis that they don't have any right to bear arms...

sethstorm's picture

Who said they had to announce their arrival?  Go in quietly with overwhelming force and announce it when they got what they came for, BP. 

The CPD would most likely be outmatched.  What are they going to do, bribe them to death?  That aside, it'd be nice to have some popcorn and watch the show.


Kali's picture

Yes, don't forget Amoco got swallowed by BP.  They have a huge research center in Naperville too.  HOnestly, when that happened, I couldn't believe it,  Remember Amoco==> Standard Oil=>one of the first of the big US oil companies. (Teddy and trustbusters, Rockefellers,remember!)

Snidley Whipsnae's picture

Old man Rockefellers most telling quotes "competition is a sin"...

From Wiki: BTW, Wiki left out Chase morph to JPMorgan...

International politics/finance/economics

The family has been awarded the annual UNA-USA’s Global Leadership Award, along with other recipients over time, including Bill Clinton and Michael Bloomberg. Members of the Rockefeller family into the fourth generation (especially the prominent banker and statesman David Rockefeller, who is the present family patriarch) have been heavily involved in international politics, and have donated money, established or been involved in the following major international institutions:

Gordon_Gekko's picture

The ENTIRE BP Management - with Tony Hayward first in line - must be DRAGGED physically through the sea of oil now clogging the beaches, so they end up looking like one of those pelicans we saw drenched in oil. Perhaps this will set an example for oil company executives to not fuck around with the safety and prevention measures. 

Scarecrow's picture

Listen to yourself. You sound like a damn idiot. We fight our battles in the courtroom here in the US. I can't believe what I am seeing in these comments. 

Gordon_Gekko's picture

We fight our battles in the courtroom here in the US.


And look where it has gotten us...

Kali's picture

I always say, lawyers, MBAs and career politicians have been the ruination of this country. +100 GG!

JLee2027's picture

Economics finally kicking in.  Layoffs in the CA court system, law students that can't find work, etc.  I feel so 

sorry for liberals that live off the gubermint.  Not.


DoChenRollingBearing's picture

Too bad for California, they overspent their way into the ditch.

No bailouts for them or anyone else.

Time for each person and each organization to stand on their own.

On the other hand, giving money away to charities and any PERSON asking for money is OK with me.  I'm trying to be more generous.

Hephasteus's picture

I don't know what you are talking about. A bunch of idiot judges who don't even know how to fucking dress themselves are fully capable of judging right and wrong in computer science patent law and complicated medical cases.

JLee2027's picture

We fight our battles in the courtroom here in the US. I can't believe what I am seeing in these comments. 

That's what liberals do, because they control the outcome and dictate what you are supposed to do.

Real men shoot first and ask questions later.

trav7777's picture

You have some evidence of your claims?  Or are you just a freakin raving lunatic?

Nobody even yet KNOWS wtf went wrong with this well and you've already gone to lynch mob.

BP shouldn't pay Florida a fucking DIME because any dime they DO pay to the STATE of Florida will end up in the pockets of the ELITES.  It will ALL be stolen.  Governments appropriate funds on "behalf" of their citizens that never go to them.

chumbawamba's picture

Yeah, so they should just keep the money and go spend it on hookers!  Fuck all the victims of the oil armegeddon, and all the pelicans!

WTF is wrong with you?  Don't you know not to get in between a mob and its object of hatred?

Go read some hippy poetry or the autobiography of Gandhi or some shit.  We're out for blood, fool.

I am Chumbawamba.

trav7777's picture

Did you read what I just wrote, fool?

Better they should give it to FL so that THEY can then go spend it on hookers?

Not a dime of the money is ever going to see the true victims.

-273's picture

The age of easy oil is past, the current oil is hard to get. This was a terrible tragedy, but it was also an accident (through neglect, arrogance or miscalculation or whatever else who knows). BP are as much to blame as the rest of the modern world who are completely addicted to oil. I imagine this will be an unpopular comment, but its the truth of the matter. We are all collectively responsible.

Anybody who drives a car, eats food, takes medicine, has any plastic products, wears clothes or buys anything which was transported from far away etc. etc is as responsible as BP. BP fucked up, but we cant live without oil and it's derivative products, and the remaining oil is incredibly hard to get now. Either hundreds of thousands of people die through invasion to get oil or mistakes are made and will continue to be made drilling in such deep waters since we NEED that oil. Without it, everything stops, and the world will be as fucked as Florida appears to be right now.



Scarecrow's picture

Don't forget the politicians who won't let the oil companies drill on land where the oil is or in the shallower water because they don't want a rig in view on the horizon. They make them go to the most dangerous places to get the oil and then get mad when something goes wrong. 

Gordon_Gekko's picture

Somebody is a shill for BP.

nonclaim's picture

Could be, but he's also correct.

Kali's picture

Who fostered that dependency?  The oil corps?

trav7777's picture

No, the fucking laws of physics did

DoChenRollingBearing's picture

Decades ago I was in the oil business.  Even in 1980 the offshore rigs I was on were very careful.

Bottom line guys is we need the oil.  We should regulkate better, and the whole oil companies / drilling cos/ oilfield services cos. must man-up and be moore serious and careful.

OK we need to research the alternatives, inc. NatGas.  Hey, I hope solar, wind, geothermal, tides, etc. can contribute to resolving our energy woes.

But, there is NO WAY we can ban drilling in the Gulf and Alaska if we want to keep gasoline prices within reason AND not enrich our Arab pals.  That's a FACT.  We have to drill.

Waterfallsparkles's picture

What is so unfortunate is that the Alternates are so expensive.  Solar Pannels for your home, very expensive.  15 years to recoup the cost.  Geo Thermal.  Would love to install Geo Thermal for my Home but so very expensive drilling the wells and the new Heating System.  Heck, even a Wood Stove will set you back close to $5,000. for the stove and the instalation.  The problem seems to me is that the alternative energy sources for Americans is so expensive that we by default go to Oil.  At least for now.

Kali's picture

Why do you think cheaper, efficient methods aren't available?  That patented knowledge is buried in oil company vaults.  There are cheaper, better ways, but they won't see daylight until the system as it exists collapses.  Anyone who tries to get new techs out, get eaten by the big boys.  "Sell me your patent/product or die".  They don't want the competition.

trav7777's picture

You're out of your mind if you believe this shit.

There is no cheating physics, ok?  Oil is significantly more energy-dense than any competing substance. 

DoChenRollingBearing's picture

trav7777 is right on this Kali.

If the economics were good for any alternative, the first-mover oil company would make a fortune.

Oil is Numero Uno for energy density by far over all vs. anything other energy sources.  FACT.