{"id":10783,"date":"2020-06-18T21:22:00","date_gmt":"2020-06-18T18:22:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/shares-of-german-payment-processor-wirecard-plunge-over-missing-2-1b\/"},"modified":"2020-06-18T21:22:00","modified_gmt":"2020-06-18T18:22:00","slug":"shares-of-german-payment-processor-wirecard-plunge-over-missing-2-1b","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/shares-of-german-payment-processor-wirecard-plunge-over-missing-2-1b\/","title":{"rendered":"#Shares of German payment processor Wirecard plunge over \u2018missing\u2019 $2.1B"},"content":{"rendered":"

“#Shares of German payment processor Wirecard plunge over \u2018missing\u2019 $2.1B<\/strong>”<\/p>\n

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June 18, 2020 |<\/span> 2:22pm <\/p>\n

\n Wirecard\u2019s auditor has refused to sign off its 2019 accounts over a missing $2.1 billion, sending its shares down more than 60 percent as the German payments firm warned the delay could cause billions in loans to be called in as early as Friday.<\/p>\n

The existence of 1.9 billion euros in cash balances on trust accounts could not be confirmed, representing around a quarter of its balance sheet, Wirecard said, adding that there was evidence of \u201cspurious balance confirmations\u201d.<\/p>\n

Wirecard Chief Executive Markus Braun said in Thursday\u2019s statement that the company, which was founded in 1999, was urgently seeking to clarify the balances in question.<\/p>\n

\u201cIt is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred. Wirecard AG will file a complaint against unknown persons,\u201d Braun said.<\/p>\n

Wirecard also warned that a failure to provide certified annual and consolidated statements by Friday would allow app<\/a>roximately 2 billion euros in loans to be terminated.<\/p>\n

In-house auditor EY had regularly approved Wirecard\u2019s accounts in recent years, and its refusal to sign off for 2019 confirms failings found in an external probe by KPMG in April.<\/p>\n

The latest development is a stark reversal of fortune for the Munich-based fintech, which was heralded as a homegrown tech success and propelled into Germany\u2019s blue-chip DAX index in 2018 at the expense of Commerzbank.<\/p>\n

Wirecard has long been a target of short sellers who have questioned its financials and \u201cshorted\u201d its stock, which fell by 60 percent in Frankfurt, wiping 8 billion euros off its market value.<\/p>\n

\u201cWe are stunned,\u201d Ingo Speich, head of corporate governance at $350 billion fund manager Deka Investment, which owns Wirecard stock, said, while calling for a change at the top.<\/p>\n

\u201cA new start is now more urgent than ever. We hope that the market\u2019s loss of confidence will not have an impact on its business operations,\u201d Speich said.<\/p>\n

Bondholders were also rattled, with its 500 million euro bond due in 2024 down by more than 40 cents and last bid at 37 cents on the euro, Tradeweb data showed.<\/p>\n

Wirecard had already delayed its annual report after the KPMG report, which addressed allegations of fraud and false accounting in a series<\/a> of Financial Times reports.<\/p>\n

In the most serious finding, covering the years 2016 to 2018, KPMG said it had been unable to verify the existence of 1 billion euros in revenue Wirecard booked through three obscure third-party acquiring partners.<\/p>\n

Activist investors, led by British fund manager Chris Hohn, seized on the KPMG audit to demand the departure of Braun, who owns a 7 percent stake in Wirecard. Hohn then filed a criminal complaint with the Munich prosecutor.<\/p>\n

German financial watchdog Bafin, which previously suspected short sellers of colluding to manipulate Wirecard\u2019s share price, has shifted its attention to the company.<\/p>\n

Prosecutors raided Wirecard\u2019s headquarters in a Munich suburb on June 5 and opened proceedings against management as part of the probe initiated by Bafin. A spokesperson said it would investigate the latest delay to results.<\/p>\n

Wirecard has said it was cooperating with the investigation and the allegations against it were unfounded.<\/p>\n

\u201cToday is a partial vindication for myself and other critics,\u201d said Fraser Perring, co-author of a bearish report on Wirecard by Zatarra Research in 2016.<\/p>\n

\u201cThe prosecutors need to act decisively to make those at fault accountable.\u201d\n <\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n

Source<\/a><\/span><\/p>\n

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“#Shares of German payment processor Wirecard plunge over \u2018missing\u2019 $2.1B” June 18, 2020 | 2:22pm Wirecard\u2019s auditor has refused to sign off its 2019 accounts over a missing $2.1 billion, sending its shares down more than 60 percent as the German payments firm warned the delay could cause billions in loans to be called in…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[22881,22882],"class_list":["post-10783","post","type-post","status-publish","format-standard","hentry","category-general","tag-shares-of-german-payment-processor-wirecard-plunge-over-missing-2-1b","tag-wirecards-auditor-has-refused-to-sign-off-its-2019-accounts-over-a-missing-2-1-billion"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/10783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=10783"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/10783\/revisions"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=10783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=10783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=10783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}