Lately I am having some unforeseen time to meditate. As the perceived ribbon of autos snake beyond the visible horizon, time seems to stand still. In reality it is my car that is standing still, the dashboard clock keeps ticking away well beyond what it should be while I normally roll across Marsa.

One’s choices are limited in these situations, chewing nails, risking a text message or daydreaming top of the list. I cannot help but notice realities that are often left abstract in headlines, but in truth effect what we do every day. This morning trip to Valletta went along these lines;

Everyone has probably heard about the Volkswagen scandal. For those who haven’t, Volkswagen has been using software to cheat emission testing. Research indicates that in reality Volkswagen cars emit 40 times above the legal limit of hazardous gases. And there is this white Audi 20 Tdi right in front of me, I cannot be sure, but there is a good probability that it is pumping those NOx whatevers directly into my lungs.

And you know what? Probably it is still cleaner than the truck, bus or modified turbo wannabe hot-hatch that visibly sends plumes of smoke into the air. It is obvious that despite doing the unthinkable the people responsible will probably be the least impacted by the scandal.

The most immediately effected were holders of Volkswagen shares. The share price fell by over 40 percent immediately following the news. Luckily I had shifted holdings in my funds away from the stock a few days before. I do not recommend touching the stock any time soon, at least until all legal implications are clear, and that may take some time.

But the situation once more captures the reality of the corporate and political world. This is a mini financial crisis again. Let me explain. During the financial crisis of 2008 banks and financial institutions have been blamed for operating in their own interest rather than their clients’ or the public in general. They have been given a slap on the hand, fined, split and regulation has increased. And in all of this worst off have been the shareholders who trusted these firms and saw their lifetime investments disappear.

Meanwhile the people responsible, the CEOs and executives, those that made the decisions, still kept their bonuses, some maybe lost their jobs, but all are still better off. Regulators chose to punish the banks, but no one seemed to dare punish the people responsible.

Volkswagen is turning out into a similar story. The shareholders have already got killed. Regulators will soon fall full force on the industry with new regulation on automakers. Meanwhile, Volkswagen’s CEO, the guy who either knew what was happening or was supposed to know what was happening has been replaced and given a €28 million pension fund for the trouble. I expect some lay-offs, talk of restructuring and promises. But once more the main casualties will be investors who will lose money and motorist who will continue to breathe-in poisonous fumes.

This article was issued by Antoine Briffa, Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt . The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.