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.
No comments:
Post a Comment