Wirecard Scandal: German Watchdog Admits Past Failures, Vows New Approach
world-today-news.com
BERLIN – Five years after the stunning collapse of Wirecard,once hailed as “the European Alipay” [[1]], Germany’s financial watchdog, BaFin, has conceded it mishandled the investigation into the massive accounting fraud. The admission comes as the regulator attempts to rebuild trust in German capital markets, severely damaged by the scandal.
BaFin’s current head, Mark branson, who joined in 2021, stated the institution “didn’t meet all the expectations placed on a supervisor” [[source]]. However, he insists BaFin has undergone a meaningful transformation, becoming “a more active, bolder institution.”
A History of Missteps
The regulator’s past actions raise serious questions about its initial response to warnings about Wirecard. In 2019, BaFin controversially banned short selling of Wirecard shares – a move widely interpreted as a show of confidence in the company [[source]]. Even more damning, BaFin filed a criminal complaint against Financial Times journalists who were reporting on suspected accounting irregularities
