BP turning over financial claims to Ken Feinberg

Individuals and businesses trying in vain to get compensation from BP for income loss can maybe breathe a sigh of relief: Starting tomorrow, the Gulf Coast Claims Facility will start processing the region's appeals for compensation. Captaining the agency is Ken Feinberg, the former "compensation czar" for financial firms receiving bailout funds from the Troubled Asset Relief Program. Both the White House and BP agreed to grant Feinberg the responsibility to dole out claims from a $20-billion escrow fund.

"I am determined to come up with a system that will be more generous and more beneficial than if you go and file a lawsuit," Feinberg said about his claims clearinghouse last month. "I don't want people to have to litigate for five years in court with their lawyers, and maybe you'll get a judgment and maybe you'll get paid."

BP sent out a press release earlier today touting the $368 million it's so far paid out to individuals and businesses over the course of the Gulf oil disaster. But Gulf residents have denounced the oil giant for the way it's managed the claims process.

BP's bid to exert tighter control over compensation claims also suffered a setback late last week, when a judicial panel ruled that all lawsuits related to the spill will be held in New Orleans. BP had lobbied for the trials to be held in the much friendlier confines of Houston, where much of the American oil and gas industry is headquartered.