October 7, 2015

What do BP and VW shareholders have in common?

The shareholders of both companies took a major bath because management violated environmental regulations. 

VW lost as much as $33 billion in market value since admitting cheating on emissions tests last month. The company is facing lawsuits and criminal probes with fines that could reach $7.4 billion in the U.S. alone. VW will fall to 80 euros in the short term, according to FXCM analyst Vincent Ganne. 

"You're going to have, as BP still has, long-cycle private litigation. Volkswagen's share price is going nowhere in a hurry," said Anthony Peters, a strategist at Swiss Investment Corp. in London. 

U.S. Attorney General Loretta Lynch and five Gulf Coast states announced a $20.8 billion settlement with BP on Monday. 

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