Wirecard Believes Missing €1.9B From Balance Sheet Doesn’t Exist
- The company said it is likely the bank trust account balances in the amount of €1.9b do not exist.
There has been an update to the Wirecard AG scandal, with the German Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term firm, once thought to be the future of Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term in the country, said this Monday that the missing €1.9 billion ($2.13 billion) of cash on its balance sheet might not have existed in the first place.
In a statement today, the company said: “The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist.”
As Finance Magnates reported, on Thursday of last week, Wirecard revealed that Ernst and Young (EY), the appointed auditor, failed to find the cash which is equivalent to a quarter of Wirecard’s balance sheet.
Since the auditor refused to sign off on the company’s 2019 accounts last week, the fourth time the publication of the company’s financial report has been delayed, Wirecard stocks have plummeted by 75 per cent. Furthermore, the German Fintech said that it has withdrawn its preliminary 2019 and first quarter 2020 financial results as well as forecasts.
“The Management Board further assesses that previous descriptions of the so called Third Party Acquiring business by the company are not correct. The Company continues to examine, whether, in which manner and to what extent such business has actually been conducted for the benefit of the company,” the statement published today said.
Wirecard CEO Markus Braun steps down
All of this information led to the long-running Chief Executive Officer (CEO) of the fintech, Markus Braun, stepping down on Friday, the day after the missing money was announced. Braun’s resignation on Friday took immediate effect and James Freis, the company’s chief compliance officer, is taking the charge of the company as an interim CEO. Freis joined the company from Deutsche Börse.
Now, the company says it is in “constructive discussions” with its lending banks with regard to the continuation of credit lines, as well as the further business relationship, which includes the continuation of the current drawing which is due at the end of June.
“In addition, the Company is examining a broad range of possible further measures to ensure continuation of its business operations, including cost reductions as well as restructuring, disposal or termination of business units and products segments,” Wirecard said in the statement.
There has been an update to the Wirecard AG scandal, with the German Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term firm, once thought to be the future of Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term in the country, said this Monday that the missing €1.9 billion ($2.13 billion) of cash on its balance sheet might not have existed in the first place.
In a statement today, the company said: “The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist.”
As Finance Magnates reported, on Thursday of last week, Wirecard revealed that Ernst and Young (EY), the appointed auditor, failed to find the cash which is equivalent to a quarter of Wirecard’s balance sheet.
Since the auditor refused to sign off on the company’s 2019 accounts last week, the fourth time the publication of the company’s financial report has been delayed, Wirecard stocks have plummeted by 75 per cent. Furthermore, the German Fintech said that it has withdrawn its preliminary 2019 and first quarter 2020 financial results as well as forecasts.
“The Management Board further assesses that previous descriptions of the so called Third Party Acquiring business by the company are not correct. The Company continues to examine, whether, in which manner and to what extent such business has actually been conducted for the benefit of the company,” the statement published today said.
Wirecard CEO Markus Braun steps down
All of this information led to the long-running Chief Executive Officer (CEO) of the fintech, Markus Braun, stepping down on Friday, the day after the missing money was announced. Braun’s resignation on Friday took immediate effect and James Freis, the company’s chief compliance officer, is taking the charge of the company as an interim CEO. Freis joined the company from Deutsche Börse.
Now, the company says it is in “constructive discussions” with its lending banks with regard to the continuation of credit lines, as well as the further business relationship, which includes the continuation of the current drawing which is due at the end of June.
“In addition, the Company is examining a broad range of possible further measures to ensure continuation of its business operations, including cost reductions as well as restructuring, disposal or termination of business units and products segments,” Wirecard said in the statement.