VOLKSWAGEN EMISSIONS SCANDAL ROCKS GERMANY
This week has been dominated by the fallout from Volkswagen’s admission that it has been cheating in US emission tests. Given all of the large corporate frauds that we’ve been subjected to, from accounting scandals to rate rigging, the furore over this one might seem a little overblown. The difference this time is that the blame can’t be pinned on a few bad apples and suggests complete contempt of the regulators from the top down. While this was probably true of the banks as well, this is the first time it’s been admitted. Worse, it casts doubt on the ideal of the well run German industrial giant being a superior corporate model, and has shaken confidence in the entire economy. Read More…..