The uncertain future of the fintech Wirecard

news-single-imgcaption" style="width:240px">After having lost the confidence of the market, may be the one of the banks, the worst would be that It suffers a hemorrhage of customers, the number of over 300,000 in the world. (Keystone)

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Markus Braun seemed irreplaceable as the president and founder of the fintech Wirecard, but his sudden departure on a background of a financial scandal without precedent casts doubt on the future of the young company bavarian.

Mr. Braun, Austrian, 51 years of age, launched in 1999 start-up that was initially used as an intermediary in on-line payments made for the porn industry, and online games. The “success story” led him to become an international provider with nearly 6,000 employees and 26 branches throughout the world, the rise in the Dax as a point of organ in the fall of 2018, the index, bringing together the elite market of germany.

But everything has quickly deteriorated since. Several articles of the Financial Times published from early 2019, and alleging for the most part fraud in the asian region have begun the dive of the Stock.

The coup de grace for Mr. Braun has been the announcement Thursday morning of a report in the nick of time of the presentation of the balance sheet of 2019 scheduled on the same day, the fourth postponement since march.

In question, a fraud, supposed of nearly 2 billion euros recorded on accounts payable in the balance sheet and which the auditors of the company have not been able to date to certify the existence.

Discussions with the banks

These ads have caused a stampede among investors, the share Wirecard losing three-quarters of its value in two days: on Friday, she admitted 35,29% to finish at 25,82 euros after having fallen 62% on Thursday.

The American James Freis, named Thursday night a member of the management board to style the department’s Compliance, has been designated acting president “with the sole power of representation”, according to a press release from the firm.

However, the time is running out for the bavarian company, who declared Friday to be “constructive talks with its lending banks” while she is under the threat of withdrawing credit lines to more than 2 billion euros if it does not Friday of accounts certified by the auditors of Ernst & Young.

After having lost the confidence of the market, may be the one of the banks, the worst would be that It suffers a hemorrhage of customers, the number of over 300,000 in the world.

“If the customers perceive of the +signals+ and begin to doubt, and this could well be the case, after the developments of the last 26 hours, It could lose a lot of it”, warns Jochen Stanzl, analyst at CMC Market.

Because the evidence of massive fraud are thickened on Friday, when the first bank in the Philippines, BDO, of which it has been assumed that she was responsible for Wirecard accounts suspects, indicated that “It is not a client of the bank.”

A document alleging the existence of a Wirecard account with BDO “is a fake one with fake signatures of the officers of the bank”, added the institution in a statement obtained by AFP.

These accounts, fed them to send payments online for customers, would have shown assets of € 1.9 billion.

Except that the listeners are doubtful that this sum, equivalent to a quarter of the balance sheet of the group, actually exists.

Criminal investigation

Markus Braun and the other members of the management board are all already in the crosshairs of justice.

The prosecutor’s office in Munich has conducted since June, a criminal investigation against them on suspicion of price manipulation.

Originally, the audit firm KPMG, commissioned an expertise on the accounts of the years 2016 to 2018. He said he was unable to complete some of the activities of payment made by third party companies on behalf of Wirecard.

This last was, however, tried in the spring to present the audit to come under a favourable light. The last known information are now integrated in the official investigation with a view to possible prosecutions, said Friday that authority.

In addition, the Fund manager DWS “will file a complaint against Wirecard and Markus Braun,” said a spokesman. (awp)

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