Obama Urged To Fine BP $100B In Damages - Report

13th Jun 2010 14:14

LONDON (Dow Jones)--Senior U.S. politicians are urging U.S. President Barack Obama to seek $100 billion in damages against BP PLC (BP) for the Gulf of Mexico oil spill, a prospect which would almost certainly bankrupt the company, the Independent newspaper reported on Sunday. Without citing sources, the report said "it is understood" that a group of senior congressmen from Obama's Democratic Party are pushing the President to sue for up to $100 billion, including punitive as well as physical damages even though it is not yet clear that BP failed to meet its responsibilities. It said the news will heap further pressure on BP's board, which will meet on Monday to decide whether to suspend dividend payments, vital to U.K. pension funds, as up to GBP1.8 billion goes out to investors each quarter. On Wednesday, BP executives will meet Obama, who has called on BP to suspend dividend payments while it struggles to keep the oil spill under control. Meanwhile, the Sunday Times reported that BP is considering putting several billion dollars into a ring-fenced clean-up fund to appease U.S. concerns over the soaring cost of the Gulf of Mexico oil spill. The fund is one of several options to be put to the company's board Monday. The report also cited unnamed sources as saying that dividend payouts may not be axed completely. A BP spokeswoman didn't comment on the news regarding President Obama. On the board meeting, she said: "At the board meeting tomorrow, there's a range of options which are open for discussion and no decision is expected this week." Newspaper Web site: http://www.timesonline.co.uk Newspaper Web site: http://www.independent.co.uk -London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320 (END) Dow Jones Newswires June 13, 2010 09:14 ET (13:14 GMT)