$20 billion is a down payment on the damage, and will in no way be sufficient to compensate all those damaged by the oil spill. A 3d party administrator will probably be along the lines of the victim compensation fund set up in the aftermath of 9/11 to handle claims by victims of the attacks and run by Kenneth Feinberg.

He was again called on to administer the sick workers fund (once that gets approved by the members of the class). He also got called on to handle executive compensation following the Wall Street meltdown and ensuing hot air from Congress over executive pay.

Expect that Feinberg will be called on here as well. He’s real good at what he does and is generally seen as reasonable and fair in determining awards.

But to put the $20 billion in perspective, $20 billion is the amount that was thrown around in the days after 9/11 to pay for the rebuilding efforts. That severely underestimated the costs there too.