Wirecard shows risks of fashionable fintech
Nationalist desperation to get ahead in fintech surely explains some of the spectacular regulatory failure in the Wirecard accounting scandal.
Short-sellers are reaping more than financial rewards from a multi-billion euro accounting fraud at German payments processing firm Wirecard.
Among other measures to defend the now-stricken firm, German financial regulator BaFin temporarily banned shorting its shares in 2019. Now the short-sellers have taken the moral high ground – despite Europe’s recent Covid-19 shorting bans – as Wirecard’s downfall has left former chief executive Markus Braun subject to a criminal investigation.
Markus Braun, Wirecard
Fraser Perring is one of the short-sellers who did most to publicize doubts about Wirecard’s accounting, initially sparking a sharp selloff in Wirecard shares in 2016, following disclosures by Zatarra Research and Investigations.