N000539
Friday, December 21, 2001 2:45 PM
FW: Flaws in the Plan
> Honorable Kenneth Feinberg
> Special Master of Sept 11 Victims Fund
>
>
>
> As a financial adviser to families who lost members during the
> September 11 attacks I have followed the creation of the Victims' Fund
> quite closely. As such, I was aghast at the dramatic change of direction
> from your previously stated position of not imposing caps on victims
> earnings to calculate the final award to the very arbitrary $225,000 limit
> that was disclosed in press releases today. Away from any inherent
> unfairness to such a limit, I believe that this undermines the very
> essence and intent of the plan. As a citizen and a participant in the
> financial markets, I applauded this effort as a very necessary vehicle to
> try and remove a litigation cloud over the vital airline industry. Having
> watched other industries stagger to bankruptcy as their financial options
> were constrained by an inability to measure future liabilities from
> lawsuits, I thought that this plan offered a hopeful alternative. The
> recognition of how huge an importance the travel industry has to the US
> economy has been amply demonstrated in the last few months. The collateral
> damage from its contraction is very profound and not easily reversed. As
> such, this bill offered hope that access to the capital markets and the
> ability to continue to restructure would be possible for the airlines.
> These benefits were enjoyed not just by the specific companies, but had
> positive repercussions for the entire economy and every citizen.
> Unfortunately, the net effect of your plan with its unrealistically low
> earnings caps totally negates this. Instead of a fair settlement, families
> of high earners (and especially high earners who had the prudence to buy
> adequate insurance) will not receive any award the way the plan is now
> constructed. I can not believe that the aim of this limit would be to
> leave grieving families with no alternative but to commence protracted,
> paralyzing litigation against the airlines.
> There is also a serious argument that the plan is simply not fair to
> these families. Others more eloquent than I will undoubtably make that
> case. My reason for writing is to question whether one of the benefits
> envisioned by this plan has been seriously compromised. The suits against
> the airlines will not be eliminated as hoped, but some families, who will
> have no benefit from the victims' fund, are almost incentivized to begin
> proceedings. For the families, and to promote the long term economic
> health of the country, I hope the current plan will be revised to
> eliminate such inequities. Not only can it be done, but at very manageable
> cost
>
> Sincerely,
> Individual Comment
> Plandome, NY