For years, Germany is struggling to find new companies, the digital future occupy markets successfully and then be large enough for the stock index DAX.
As Wirecard came just at the right time. A young Fintech, is growing rapidly and a leader in the digital markets of the future. This seemed to be the right face lift for the ageing Index was welcomed with enthusiasm. Quickly, the market value of the company increased to about 20 billion Euro.
a report in the Financial Times about irregularities in accounting, came to the front about one and a half years. Thus, a tragedy took its course, who knows since Thursday a lot of losers. And, what is especially bad, was not always elucidated yet.
It is still not clear who actually has cheated whom. Facilitated the company a lot of money it had earned, or the money underlying revenues and profits were only pure air bookings?
The difference is important. In the first case, there is still a chance of Survival, because at least it would vote Yes, that the company can earn with its business model a lot of money. In the second case, Wirecard would be no modern Fintech, but just a modern pyramid scheme, a Ponzi scheme 4.0.
In the case of would have to the most, whether investors, creditors or banks to adjust unfortunately, the fact that the company hardly much more than the memory could stay. Therefore, it is absurd that we still know what really happened.
Unfortunately, speaks at the Moment a lot more for the theory of the snow ball system. There is no security against fraud. Our economic and social system is constructed in principle on trust, and so it will always come back to such cases.
What makes Wirecard so special, is not even the size of the fraud, regardless of by whom. No, in this area there has been more. Rather, it is the strange passage of time that makes you wonder and worry must fill is.
As I said, from scams no one is immune, but that about one and a half years after the FT article is only clear that cash in the amount of 1.9 billion euros – i.e. the whole of the equity has either never or mysteriously disappeared, is quite unique. The is to fear so, Wirecard, and the people responsible for an entry in the history books secure.
we’ll Start with the Regulator, i.e. BaFin and the ECB. Every Bank in Germany, meanwhile, has to vote on the color of your toilets with the Regulator, and Wirecard plays just like that with nearly 2 billion in Monopoly money without noticing it in all the time none a little? Could it be due to the fact that the established banks today are over-regulated completely, while many Fintech the eyes for too long closed?
If it were, it would need urgently a correction. Same rules for all. What exactly made the Supervisory Board of the company, is beyond my knowledge. But I’m afraid, what it is and it always was – it was under the influence of sleeping pills. Germany will have to Willy-nilly leave questions about his Governance in the companies favor.
And then the economy would be as auditor. You are the first and most important line of defense against fraud and Manipulation in a simple, but Central question: the Figures in the balance sheet? This is not so easy. With the globalization and the increasing complexity of the company, the creation of an accurate balance sheet is a Herculean task, and there is a lot of room for interpretation, or even Cheating.
Therefore, of great importance to the auditors so. But here, too, is at Wirecard something special. In the whole Drama, it was the easiest Position in the balance sheet, the Cash Position. The company had 1.9 billion on the account or not? Actually, that should be not as hard to come by. So we are back to the question from the beginning. The money would have been stolen in the recent past, is one thing. Bad enough, how this could happen, but like I said: Ultimately, no one is immune to criminal energy.
it gave this money to never, then the Central question is obvious. Why were the regulators, the Supervisory Board and, in particular, the economy? controller in the one and a half years after the first FT article is not in the position to check a billion account balance
The answers if we get to it because of time, not only about the fate of Wirecard (or what remains of them) decide.
This article was written by Leonhard Fischer
*The contribution of “Wirecard: snow ball system 4.0?” is published by LOOT. Contact with the executives here.
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