Letter to Thomas J. Perrelli Associate Attorney General

Letter

Thomas J. Perrelli
Associate Attorney General
U.S. Department of Justice
950 Pennsylvania Ave, NW
Room 5706
Washington DC 20503

Dear Mr. Perrelli,

I am writing to you as a follow-up to my recent letter to Kenneth Feinberg, Administrator of the Gulf Coast Claims Facility, in which I urged that the funds from BP to establish an escrow account be placed in Louisiana financial institutions affected by the crisis. Mr. Feinberg indicated that he is in complete agreement with me but that he does not have the ultimate decision-making authority.

The oil spill and resulting drilling moratorium have had a devastating impact on the economy of Louisiana and the surrounding region. I believe that you should use the local financial institutions in the affected Gulf region to establish this escrow account rather than use the Wall Street banks.

In an effort to assist those seeking claims from BP, the Federal Reserve and other federal bank regulators last week urged banks along the Gulf Coast to restructure their loan programs, waive late payment charges, make quicker loan decisions and ease loan terms for their customers affected by the oil spill. Establishing the escrow fund through local institutions increases their ability to mitigate the economic disaster and offer aid to their customers. I am confident that this proposal can be executed in a way that allows the financial institutions to make money to cover their costs and benefit their customers without risk to the funds in the escrow account, particularly since the FDIC provides insurance coverage for transaction accounts.

I strongly urge you to use Louisiana financial institutions rather than Wall Street banks in establishing the escrow fund. Please don't hesitate to contact me if you have any questions about this proposal. I am happy to discuss it with you at your convenience.

Sincerely,

David Vitter
United States Senator

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