To avoid collateral damages, the fines of those who create and finance jobs should be paid in new shares and not in cash.

Sir, I refer to Henry Foy’s and James Politi’s “Volkswagen scandal fuels fears for jobs across Europe” October 13.

Again it points to reasons why the world should not impose fines payable in cash on those who misbehave and deserve punishment, but who generate jobs, or credit. That would only weaken them and thereby cause many casualties among the civilians who are not responsible.

Have them instead to pay all fines by issuing new shares to be delivered to whomever a judge feels should get these.

The dilution of existent shareholders is more than enough punishment to guarantee that management will be more careful.

And this is especially valid when regulators, by their incompetence or any other reasons, have helped to induce the misbehavior. 

http://teawithft.blogspot.com/2015/10/vw-emissions-controls-fines-for.html

http://teawithft.blogspot.com/2015/10/bank-fines-should-be-paid-with-bank.html

@PerKurowski © J

VW & emissions & controls: Fines for allowing itself to be tricked, should not become a revenue source for governments

The more I read about the Volkswagen affair the more convinced I become of that, what really does not bring anything to the table in terms of justice, economic efficiency or even sustainability, is having VW to pay huge fines to a government that hosted such inefficient emission controllers who allowed themselves to be tricked by clearly immoral but also quite ingenious engineering tricks.

On reading Richard Milne’s “Wolfsburg fears fallout from VW scandal” October 12 this is what I would suggest:

Decide on a substantial amount to fine Volkswagen for their misbehavior, but make it pay all that fine by issuing (green) shares in Volkswagen, to all who bought its diesel cars and to all of its employees. That way you do not weaken a company, or a city, while at the same time, presumably, you introduce among VW’s shareholders a wish for a better corporate behavior, so as not having their shareholder participation further diluted.

And then, just how you use hackers to assist you in building safety features for increased cyber-security condemn, all the Volkswagen engineers responsible for the misdeeds, to social work, by developing emission controls that work.

PS. This is somewhat similar to the fines on banks, which directly hurts their lending capacity, precisely when we need it the most.

@PerKurowski ©  J