Photo: Ludovic Marin/AFP/Getty Images

Carlos Ghosn is in jail, and he's likely to be there for a while. Up until last week, Ghosn was the unquestioned leader of the largest carmaker in the world, the Renault-Nissan-Mitsubishi Alliance, which sold 5.5 million cars in the first 6 months of 2018. The group has also sold more than 500,000 electric cars, which is twice as many as Tesla.

The big picture: The success of the Alliance is in large part due to the hard-charging Ghosn. But Ghosn's sheer force of personality cuts both ways. It can get things done, especially in countries like France and Japan where change is particularly difficult. It also pisses people off, including a Japanese whistleblower at Nissan. The result: Ghosn being arrested while aboard his private jet in Tokyo.

  • The stated reason for Ghosn's arrest was underreporting $44 million of income to the Japanese authorities. He also reportedly spent $18 million of corporate money on personal homes, including a house in Beirut, where the company has no operations.
  • Even at the highest levels, there were tensions within the alliance. Ghosn was planning a full-scale merger of Renault and Nissan before his arrest, which the Nissan board opposed. That board wasted no time in firing him from his position as chairman, even as the Renault board was more supportive.

Be smart: People as wealthy as Ghosn often begin to believe that the rules no longer apply to them. At least until they're arrested.

The Ghosn scandal is far from the only tale of business turpitude in Japan. A different whistleblower has helped to initiate a DOJ investigation of Olympus, which seems to have had difficulty changing its corporate culture after a $1.7 billion accounting scandal in 2011. And Mitsubishi UFJ Financial Group is being investigated by U.S. prosecutors over money laundering connected to North Korea.

Why it matters: Increasingly, corporate malfeasance takes place internationally. Companies and their executives are being held accountable in dozens of jurisdictions around the world. Investigations can and do turn up in unexpected places.

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New York City schools will not fully reopen in fall

Photo: Spencer Platt/Getty Images

New York City Mayor Bill de Blasio announced at a press conference on Wednesday that schools will not fully reopen in fall, and will instead adopt a hybrid model that will limit in-person attendance to just one to three days a week.

Why it matters: New York City, once the epicenter of the coronavirus outbreak in the United States, is home to the nation's largest public school district — totaling 1,800 schools and 1.1 million students, according to the New York Times. The partial reopening plan could prevent hundreds of thousands of parents from fully returning to work.

Treasury blames lenders for PPP disclosure debacle

Illustration: Aïda Amer/Axios

The U.S. Treasury Department is pointing the finger at lenders for errors discovered in Monday's PPP data disclosure.

What they're saying: "Companies listed had their PPP applications entered into SBA’s Electronic Transmission (ETran) system by an approved PPP lender. If a lender did not cancel the loan in the ETran system, the loan is listed," a senior administration official said.

Updated 37 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Eniola Odetunde/Axios

  1. Global: Total confirmed cases as of 10:30 a.m. ET: 11,863,477 — Total deaths: 544,949 — Total recoveries — 6,483,402Map.
  2. U.S.: Total confirmed cases as of 10:30 a.m. ET: 2,996,679 — Total deaths: 131,486 — Total recoveries: 936,476 — Total tested: 36,878,106Map.
  3. Public health: Deaths are rising in hotspots — Déjà vu sets in as testing issues rise and PPE dwindles.
  4. Travel: How the pandemic changed mobility habits, by state.
  5. Education: Harvard and MIT sue Trump administration over rule barring foreign students from online classes.
  6. 🎧 Podcast: A misinformation "infodemic" is here.