White House: BP has ‘plenty of cash’

A White House spokesman dismissed questions about BP’s ability to pay vast economic damages related to the Gulf oil spill, saying the company has “plenty of cash.”

White House spokesman Bill Burton told reporters on Air Force One there is no formal agreement yet with BP on the amount of money that will go into a proposed escrow account used to pay out damage claims.

“They’ve got plenty of assets. They’ve got plenty of cash,” Burton said.
“We’re going to work to make sure that the money’s put in the right
place, to make sure that they’re taking care of the Gulf region.”

The company has lost some half its value since the spill began, and some have speculated it will not be able to avoid bankruptcy given its liability for cleanup and recovery costs. BP CEO Tony Hayward has said the financial impact of the spill will be “severe,” but that the company will be able to “weather the storm.”

Burton said he did not know if the president, who was returning Tuesday afternoon from his fourth trip to the Gulf of Mexico, would offer a specific amount he would like to see in the escrow account when he addresses the nation Tuesday night from the Oval Office.

The president, who is still tinkering with his speech, will discuss what the administration has done so far in terms of cleanup and drilling regulations, and what needs to be done to lessen the environmental and economic damage.

“This has been a very tough season for a region that was already hit very hard by the recession that we’re in,” Burton said.

Obama is scheduled to meet with BP executives at the White House on
Wednesday.