Buddy Can You Spare A Euro

I read this with incredulity …. German Company Wirecard discovered to have a nearly Two Billion Euro black hole ( can I still say that ? ) in its accounts . Senior Executives resigned or dismissed …. apparently it is Germany’s worst ever Accountancy scandal .

When rumours of the financial problems were published in the FT the newspaper was accused of trying to manipulate the Market , also rumours of illegal transfers to Philippine Banks .

Courtesy of Reuters ….

Wirecard is the first member of Germany’s prestigious DAX stock index to go bust, barely two years after winning a spot among the country’s biggest 30 listed companies with a market valuation of $28 billion.

The collapse of Wirecard, once one of the hottest financial technology companies in Europe, dwarfs other German corporate failures. It has shaken the country’s financial establishment, with the head of regulator Bafin saying this week the scandal was a “total disaster”.
….. full article ,,,, 'The money's gone': Wirecard collapses owing $4 billion
 
I read this with incredulity …. German Company Wirecard discovered to have a nearly Two Billion Euro black hole ( can I still say that ? ) in its accounts . Senior Executives resigned or dismissed …. apparently it is Germany’s worst ever Accountancy scandal .

When rumours of the financial problems were published in the FT the newspaper was accused of trying to manipulate the Market , also rumours of illegal transfers to Philippine Banks .

Courtesy of Reuters ….



….. full article ,,,, 'The money's gone': Wirecard collapses owing $4 billion


 
The FT were onto it in 2019.
On 30 January 2019, Wirecard shares plunged after the FT reported that a senior executive was suspected of “falsification of accounts” and “money laundering” in the company's Asia-Pacific operations. Wirecard issued a statement calling the report “false, inaccurate, misleading and defamatory. Wirecard also announced a lawsuit against the FT for "unethical reporting" and a lawsuit for market manipulation.
From Wikipedia
 
The FT were onto it in 2019.
On 30 January 2019, Wirecard shares plunged after the FT reported that a senior executive was suspected of “falsification of accounts” and “money laundering” in the company's Asia-Pacific operations. Wirecard issued a statement calling the report “false, inaccurate, misleading and defamatory. Wirecard also announced a lawsuit against the FT for "unethical reporting" and a lawsuit for market manipulation.
From Wikipedia
I really does beg the question , again , about Company Account Auditing over the long term of a Company ... can they be trusted or are the Auditors not up to the job and are easily fooled .
 
The German authorities saw the article in the Financial Times as being "bad blood" over their attempts to move the financial centre of Europe to Frankfurt, so they disbelieved the article which warned them of Wirecard's disastrous finances, so much so that they stopped investors "shorting" the stock of Wirecard. Now the CEO of Wirecard has admitted that the company is effectively bankrupt and has taken a lot of investors with it.
 

4(T)

LE
I read this with incredulity …. German Company Wirecard discovered to have a nearly Two Billion Euro black hole ( can I still say that ? ) in its accounts . Senior Executives resigned or dismissed …. apparently it is Germany’s worst ever Accountancy scandal .

When rumours of the financial problems were published in the FT the newspaper was accused of trying to manipulate the Market , also rumours of illegal transfers to Philippine Banks .

Courtesy of Reuters ….



….. full article ,,,, 'The money's gone': Wirecard collapses owing $4 billion

So, Ernst & Young and the German tax office played along with the scam for a few years, until it became too big to hide.

No surprise about either party then.
 

4(T)

LE
The German authorities saw the article in the Financial Times as being "bad blood" over their attempts to move the financial centre of Europe to Frankfurt, so they disbelieved the article which warned them of Wirecard's disastrous finances, so much so that they stopped investors "shorting" the stock of Wirecard. Now the CEO of Wirecard has admitted that the company is effectively bankrupt and has taken a lot of investors with it.

IMHO, its about as credible as the German authorities being taken by surprise about the VW emissions scandal.

Business & State are very closely entwined in Germany.
 
or are the Auditors not up to the job and are easily fooled .
Audited by KPMG, who as I am sure you are aware, have had "problematic reports" in the past.

Apr 28, 2020
Wirecard AG was handed the report on the special investigation by the auditing company KPMG in the early morning of April 28, 2020. It will be published at Our Commitment | Wirecard as soon as possible.

No incriminating evidence was found for the publicly raised accusations of balance sheet manipulation. In all four areas of the audit - third-party partner business (TPA) and Merchant Cash Advance (MCA) / Digital Lending as well as the business activities in India and Singapore - no substantial findings were found which would have led to a need for corrections to the annual financial statements for the investigation period 2016, 2017 and 2018.
 
So, Ernst & Young and the German tax office played along with the scam for a few years, until it became too big to hide.

No surprise about either party then.
Smacks of ...... If you are perceived as small and owe say £10,000 you are under threat ..... if you are Megga and have a 'ole in your account sin the £Billions you can control any threats ..... perceived from the other end ... too big to fail .
 
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Been watching that for the last week, absolutely no surprises with any of it!!! WE have to get rid of the all powerful four, they taint anything and everything they touch.
 

Chef

LE
Audited by KPMG, who as I am sure you are aware, have had "problematic reports" in the past.

Apr 28, 2020
Wirecard AG was handed the report on the special investigation by the auditing company KPMG in the early morning of April 28, 2020. It will be published at Our Commitment | Wirecard as soon as possible.

No incriminating evidence was found for the publicly raised accusations of balance sheet manipulation. In all four areas of the audit - third-party partner business (TPA) and Merchant Cash Advance (MCA) / Digital Lending as well as the business activities in India and Singapore - no substantial findings were found which would have led to a need for corrections to the annual financial statements for the investigation period 2016, 2017 and 2018.
Both KPMG and Pricewaterhousecooper have colourful track records


As @Border_Reiver says some debts are so big they get ignored, however the actual auditing companies don't seem to suffer much from an interesting track record or Capita for that matter.
 
Smacks of ...... If you are perceived as small and owe say £10,000 you are under threat ..... if you are Megga and have a 'ole in your account sin the £Billions you can control any threats ..... perceived from the other end ... too big to fail .
As Dad always said. If yer gonna do Fraud, do it big.
Owe the Bank a Grand that's your problem, owe the Bank a Billion that's theirs.
 
I read this with incredulity …. German Company Wirecard discovered to have a nearly Two Billion Euro black hole ( can I still say that ? ) in its accounts . Senior Executives resigned or dismissed …. apparently it is Germany’s worst ever Accountancy scandal .

When rumours of the financial problems were published in the FT the newspaper was accused of trying to manipulate the Market , also rumours of illegal transfers to Philippine Banks .

Courtesy of Reuters ….



….. full article ,,,, 'The money's gone': Wirecard collapses owing $4 billion
And why can't you say "Black Hole"? If my account is overdrawn I am in the red, in credit am in the black.
 

Bodenplatte

Old-Salt
I really does beg the question , again , about Company Account Auditing over the long term of a Company ... can they be trusted or are the Auditors not up to the job and are easily fooled .
It's just too complicated to effectively audit these huge companies nowadays.
 
I read this with incredulity …. German Company Wirecard discovered to have a nearly Two Billion Euro black hole ( can I still say that ? ) in its accounts . Senior Executives resigned or dismissed …. apparently it is Germany’s worst ever Accountancy scandal .

When rumours of the financial problems were published in the FT the newspaper was accused of trying to manipulate the Market , also rumours of illegal transfers to Philippine Banks .

Courtesy of Reuters ….



….. full article ,,,, 'The money's gone': Wirecard collapses owing $4 billion
Corruption and scandal in ze Vaterland?. Shurely shome mistake?.

Is that new airport in Berlin ready yet?.
 
IMHO, its about as credible as the German authorities being taken by surprise about the VW emissions scandal.

Business & State are very closely entwined in Germany.
The same goes for the Berlin Brandenburg airport affair. 11 billion Euro over budget and rising!.

Bent as 9 Euro notes, the lot of them.
 
If I may:

and being audited by organisations whose interest it serves to maintain the appearance of probity else they themselves are checked.
As mentioned above, the auditors involved in this case have not covered themselves in glory on previous assignments.
 
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