BP $20 billion fund may not cover spill costs

Acting under heavy pressure from the Obama administration, BP Wednesday agreed to suspend its quarterly dividend immediately and establish a $20 billion escrow fund toward damages and claims arising from its disastrous Gulf oil spill.

The move helps remove some of the uncertainty that has been hammering at the company’s stock price since the April 20 accident, although it remains unclear what the total cost will be for the nation’s worst oil spill.

President Barack Obama, after meeting with top BP officials in the White House, stressed that the $20 billion was “not a cap” on BP’s liability.

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