Maxi rebound in Frankfurt for Wirecard, the fintech “continues the activity”

Meanwhile, the clouds are gathering on EY, Wirecard’s auditor for years: according to the ‘Financial Times’, the company is preparing for the fallout of the scandal, which it itself has brought to the surface, with the refusal to certify the 2019 accounts in the absence of results on 1.9 billion euros, theoretically deposited in bank accounts of the Philippines and in reality non-existent

–

2 ‘of reading

Wirecard scores a mega-rebound on the Frankfurt Stock Exchange, after the past sessions have gone down to hell. Instead the clouds gather on EY, Wirecard’s auditor for years: according to the ‘Financial Times’, the company is preparing for the fallout of the scandal, which it has brought to the surface, with the refusal to certify the 2019 accounts in the absence of results on 1.9 billion euros, theoretically deposited in bank accounts of the Philippines and in reality non-existent.

EY told its senior partners – reports the ‘Ft’ – to prepare for “difficult talks” with customers on the Wirecard audit. The indication is to say that “the goal” of the international scam hatched by Wirecard was to “cheat investors and EY”. The British newspaper also reports that Wirecard’s new CEO, James Freis, in office a week after the resignation of founder Markus Braun (arrested at the request of the Munich prosecutor’s office and released on bail), told the supervisory board that simple basic checks would have been enough to find out the scam. A group of activist investors, the Dutch Veb, has already moved, asking for a full investigation on the work of EY on Wirecard, by Bafin, the surveillance body of the German stock exchange (which in turn ended up in the sights of EU authorities) and a group of investors has launched a legal action in Germany, according to Berlin lawyer Wolfgang Schirp. The Ft also reports that the June wages of Wirercard employees in Germany, France and Luxembourg have not been paid, while the payment would be regular in other countries. On Saturday, Wirecard, which in just over a week saw its stock market value fall by 90%, nevertheless announced that its activities will continue, despite the filing of the balance sheet that took place last Thursday. According to the management board of fintech, this is the best solution “in the interest of creditors”, while the Munich prosecutor proceeds with the examination of the request for insolvency proceedings. The judges can either decide to put the company in controlled administration, which would allow for a restructuring, or opt for liquidation if there is no hope of recovery. Wirecard also specified on Saturday that “the group’s branches, with the exception of a small subsidiary, have not filed for insolvency proceedings”.

Therefore, the Wirecard Bank also remains out of the proceedings, where payments “will continue to be processed without restrictions”. The company also states that it is “in permanent contact with credit card organizations”. According to rumors last week, the two big names in the sector, Visa and Mastercard, are rethinking their commercial relations with the group. In the UK, the FCA, the financial sector supervisory body, has meanwhile frozen the activities of the British branch of Wirecard, explaining that it wants to “protect” the money of those who use it.
(Il Sole 24 Ore Radiocor)

–