“Tis quite an accounting error at the German company, Wirecard. The company’s value went from 13 billion (Euro) in June2020 to 200 million (Euro) in August 2020. Wirecard owns a bank and does payment services and suspicions about fraud had been circulating since January 2019. So far, four Wirecard managers and executives, including its former CEO, CFO, and accounting manager, have been charged with fraud, breach of trust, and market manipulation. The allegations are that the managers began inflating revenue in 2015.
Apparently, the German government and regulators were all in with this financial wunderkind. Chancellor Angela Merkel was all in for Wirecard’s acquisition of AllScore Financial, a Chinese Company. And employees at BaFin, the German bank regulator, were trading Wirecard shares in 2019 and the first six months of 2020. In fact, the trading was ongoing whilst BaFin was investigating Wirecard. German officials agree that Wirecard is a financial disaster but that BaFin’s supervisory mechanisms are sound. VW and emissions falsification. Wirecard and revenue falsification, and apparently German regulators were enjoying the ride. Fahrvergnugen and all that.