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Oil giant BP is to put $20bn (£13.5bn) in a compensation fund for victims of the Gulf oil spill and will not pay shareholders a dividend this year.

Barack Obama announced the compensation deal after talks at the White House with senior BP executives.

Shortly afterwards, BP chairman Carl-Henric Svanberg said dividends would not be paid for the rest of this year.

The payout fund is to be run by Kenneth Feinberg, a lawyer who oversaw compensation after the 9/11 attacks.

In his current role as Mr Obama's "pay tsar", Mr Feinberg sets salary limits for executives at firms in receipt of federal bailout funds. - BBC