Wirecard’s collapse sparks German soul-searching over work of auditors, financial regulator
21 August 2020 00:00
Duration: 16:48
Payment processor Wirecard had been hailed as a German superstar in the world of financial services — an example of how a strong idea could see Europe compete with the Silicon Valley giants. Then things went awry, with media reports of behind-the-scenes irregularities. Finally, it was revealed that Wirecard had a 1.9 billion-euro accounting blackhole, leading the company to collapse, leaving aggrieved creditors and shareholders in its wake. The debate over Wirecard’s implosion is now centering on Germany’s financial regulator, BaFin, and the shortcomings of its oversight; the failure of the company’s auditor, EY, to identify the accounting problems is also attracting scrutiny.
Related Articles
-
A legal case taken by Wirecard investors against the German financial regulator BaFin is in “uncharted waters”.
Editorial Team
James Panichi Senior Editor, Asia Pacific
James, an Australian journalist with over 25 years’ experience in print and electronic media, helps to oversee MLex’s coverage of regulatory risk in Asia, with special attention to Australia and New Zealand. In 2016, James was appointed as MLex’s managing editor for continental Europe, overseeing the Brussels bureau’s coverage of EU regulatory affairs and managing a team of 16 journalists in Brussels and Geneva. Previously James worked for the European Voice newspaper, before joining the... Read more