Power Steering Pump problems of the 2008 BMW 335

The vehicle started making a loud knocking sound while driving on the highway at approximately 65 mph. (video was taken) the oil pressure dropped, a battery indicator light flashed, the power steering went out, and the vehicle lost speed. I almost wreaked. I checked my steering wheel fluid and it was brown, an indication to me the power steering pump went out. A belt also snapped. I purchased an extended warranty that BMW is telling me does not cover the a/c compressor. I am being told that in order for BMW of fresno to make a proper assessment of the steering issue I first have to replace the a/c compressor at $2535. 34. As a fleet manager, I know my chain is being yanked.