Made In Germany

Remember when Germany was known for virtues like incorruptibility, restraint, discipline and a sense of justice?

WireCard

Yeah, me neither. The Wirecard meltdown – and let’s not forget Volkswagen’s Dieselgate, the „Cum-Ex“ files, practically everything Deutsche Bank has ever done, etc. – is yet another reminder of a much greater problem here: Dishonesty and corruption.

The collapse of tech giant Wirecard triggers national angst in Germany – Politicians and officials in Germany are scrambling to tighten up the regulatory oversight of fintech companies following the collapse last month of Wirecard, the online payment processor.

The company, once worth more than $27 billion, filed for insolvency after admitting that a huge fraud had been perpetrated and that more than $2 billion was missing from its accounts. The CEO, Markus Braun, resigned and was arrested. As Europe’s largest fintech, Wirecard was widely regarded as a national champion in Germany, and so the collapse has caused a national bout of soul searching.

“You don’t get to a 2 billion euro [$2.3 billion] hole in your accounts overnight. Something clearly had to have been happening over quite a prolonged period of time.”

The Regulator Failed?

Well, then let’s give the regulator more money and personnel.

Wirecard

To ensure that they keep on failing in the future? Government in action, folks. If it’s not too big to fail it’s too much of a failure to fail, I guess.

Germany to overhaul regulator after Wirecard scandal – Germany’s finance minister wants to beef up the nation’s financial regulator in the wake of the Wirecard scandal. The finance watchdog admitted its ineffectiveness in preventing the auditing disaster.

“If we come to the conclusion that BaFin needs more money, more jobs and more competency, I will make every effort to ensure that this happens.”

German Of The Day: Dax-Zombie

That means DAX zombie.

DAX

For the first time, a DAX company, Wirecard, has gone broke but won’t be kicked out of the index until September.

Wirecard has filed for insolvency, just days after a $2 billion accounting scandal at the company burst into the open, crashing its stock and leading to the arrest of its former chief executive.

The digital payments company said in a statement Thursday it had opened legal proceedings in Munich “due to impending insolvency and over-indebtedness.” Share

Mit Wirecard ist zum ersten Mal ein Dax-Konzern pleite gegangen. Aus dem Leitindex fliegen dürfte der Konzern aber erst im September.

Where On Earth Did I Put That €1.9 Billion?

I didn’t leave it in my other wallet now, did I?

Wirecard

Remember when Germany used to have that squeaky-clean image? Yeah. Me neither. Now Wirecard has stepped up to the plate.

German payments firm Wirecard says missing €1.9bn may not exist – Company thought money was in two Asian banks but search hits dead end in Philippines.

“The management board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of €1.9bn do not exist.”