Analyst Teo Lasarte still believes there is too much uncertainty surrounding Volkswagen for Bank of America to change its bearish outlook. In a new report, Lasarte discussed the Volkswagen situation and some ways to profit off the company’s downfall other than simply shorting the stock.

Four Risks

Lasarte sees four potential risks to the company as the Volkswagen emissions scandal continues to play out. Risks include regulatory fines, lawsuits, recall costs and a potential capital increase to the company’s financial segment. At this time, developments are too early-stage for Bank of America to attempt to quantify these risks accurately, but Lasarte estimated that the company could face €26.5 billion in liabilities.

Financial Services Will Take A Hit

According to Lasarte, about 20 percent of VW Financial Services’ balance sheet is…

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