Wirecard Watchdog Reportedly Believed Company Was Victimized By Malicious Short-Sellers
The head of Germany’s financial watchdog, BaFin, suggests that the people in charge of monitoring the situation at Wirecard - the FinTech darling whose collapse ushered in Germany's version of the Bernie Madoff scandal, likely didn't do an adequate job.
And after months of German Bureaucrats deflecting blame, it looks like the FT has finally pinned down Felix Hufeld, president of BaFin, who raised the possibility with Wirecard chairman Thomas Eichelmann, according to these sources, in a phone call that took place last June after the payments group’s auditor EY was informed by two banks that documents purporting to confirm the company’s cash position was nigh "impossible."
Meanwhile, as tensions mount over supply shortfalls, BaFin warned that regulators failed, largely because Europe's didn't have a sense of discipline.
With the IMF's Managing Director Georgieva warned that in Europe, people should be allowed to carry go It would mean that vaccines that leave the EU need a permit, so that at least we know what's produced in Europe, what is leaving Europe, where it's leaving Europe for, and we have a fair distribution.On the other hand, Valdis Dombrovskis, the EU trade commissioner, on Tuesday said that Brussels did not want to impose curbs on shipments but instead said companies should be forced to provide more information about where they were sending vaccine supplies. The commission hopes to table an "export notification instrument" by the end of the week. UK Prime Minister Boris Johnson, meanwhile, urged the EU not to impose export restrictions of any kind.
The documented incident shows how strongly BaFin clung to the notion that Wirecard was a victim rather than a perpetrator of fraud, even after EY refused to audit its 2019 results. For years, BaFin had dismissed reports of fraud at Wirecard and filed a criminal complaint against FT reporters, alleging they colluded in market manipulation.
Eventually, however, Hufeld finally was forced to acknowledge that EY had misled Wirecard, and that thousands of employees would be forced to pay the price.
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