What happened to Wirecard? | CNBC Explains
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- เผยแพร่เมื่อ 22 มิ.ย. 2024
- German payments group Wirecard was once seen as Europe’s most exciting fintech company. Now it’s at the center of one of the biggest financial scandals in the country’s history. CNBC’s Tom Chitty explains.
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Am I the only one who’s never heard of Wirecard till this year 2020?
To be fair it’s a payment processor and not really a consumer product
Me too
Me too...Been in Germany many many times however today is the first time I heard about Wirecard
I hear of Wirecard when it turns to be collapsed
I was literally TODAY years old when I first heard of this (*clearly throat 2022).
Behind every major German downfall is an Austrian leader...
But the Irony is that German government kinda knew all about Inside Data Fudging but didn't do anything to keep its Homegrown tech giant thriving anyhow....
@Heather Larson Why it's impossible for Europeans to have one?? It's never too late to create e-commerce/e-payment giant....
Exactly! Why didn't they learn from the past?
Dhrubajyoti Raja You clearly have no idea what you talking about 🦍 🦍
@@endagu8098 What Idea??
When I heard SoftBank I just started laughing out loud 🤣
*Adam Neumann approves this comment* 😁
At this point Softbank is hardly an investor.
Every major investment I've heard was from SoftBank has failed. It seems that most of what they touch turns to stone and then crumbles, WeWork, Sprint, Wirecard.
Investors they are- just investors that are taking big losses! Afterall, you can't do well for your clients (Joe and Jane public) all the time.
I landed a job at wirecard in June 2020. The day before I was supposed to hand over my resignation, they filed for insolvency. Thank God that was a near miss
And there goes any European competition to US & Chinese counterparts
🤔
Europe, the museum of the old industry
@sameer s Take a look at UK though, their banks are far ahead of US.
Well Adyen is european and they are doing fine
@@dinmavric5504 which banks specifically and far ahead in what?
the Big Four mafia organizations: EY, KPMG, PwC and Deloitte
I worked for the big D. Clients paid our bills, events, and kept us employed. We are incentivized to keep our mouths shut, do the minimum, and give our clients as many tries as humanly possible to get things right. If that is not a broken system, IDK what is?
true. Whoever pays their bill gets their approval. We - the people - need to end the power of the fiscal hegemony.
we need to start setting up a crowd funded or publicly regulated auditors. These four auditors are the hyenas of the capital system who essentially do nothing, blindfold themselves and thus become the reason for all these scandals.
@@knnaveen007 100%
@@Notjimmymaio finally the truth has been spoken.
Sounds like an EY scandal
Can we just talk about how much better the CNBC Explain journalists are that CNBC live TV? This explanatory format is very useful to the world and all the hubbub on CNBC tv for generating severe drops or spikes in stock price is useless and a huge timewaster. CNBC Explains is such an underrated youtube series imo and more people need to watch it.
I belive they are younger, fresh face people who want to do it better. Early stage of carreer, intresting topics to analyze. It’s a sweet job and they do it very well. They should have more space at live TV too
3:17 WAAAAAAAAAAAAAAAAAAAAAIT WHAT? THATS POSSIBLE?
Michel Bruns of course it is! The authority of a country can suspend all short positions under jurisdiction. Happened in Spain and Italy during quarantine. And some countries want to abolish short positions as we know today
EY didn't fail in checking wirecard's bank statement. They resorted in doing such procedure because they did not perform/were not able to obtain third party confirmation.
I don't know why you're defending EY. It's an extremely routine procedure to perform a bank confirmation to obtain assurance over the cash balance. If they had trouble or were otherwise unable to obtain the confirmation, that should be a red flag. At minimum they need to perform some other procedure to get comfort over the cash balance, not just trust some pieces of paper they received from wirecard or non-bank third parties.
I can’t believe one of the big 4 accounting firms didn’t think there was something slightly suspicious about claims to have made huge profits from payment processing services in South East Asia - a region known for low incomes and heavily cash-based societies.
The financial regulatory authority of Germany doesn't have power to prosecute that's hard to digest
Why SoftBank is behind every financial Disaster in the past three years.
Very lax rules and enough money to throw everywhere.
You need to give more recognition to the FT for this story.
CNBC rocks these months !!!
😎😎😎😎
I don't understand how the accounting firm could sign off the audit report for the IPO. I think the accounting firm is accountable for this too.
If you see their engagement contract they are not responsible for their opinions 😅
Regulators should file criminal charges against auditing companies involved.
I'm sure BaFin knew very early about the problems at wirecard and was hand in glove with wirecard. Can't imagine that the german supervision is soo dumb.
Yeah actually many of Bafin‘s employees where invested in Wirecard. They held more Wirecard stocks than any other Company. Why should they betray their own investment?? So many criminals out there, they already knew more than the whole population...
@@musiclove3676 u think so? I read an article that BaFin employees were the first ones who sold their shares far before the share price crashed.
@@JanischMaximilian ty
@@musiclove3676 That is actually not quite true. BaFin employees were holding Wirecard stock (Why shouldn't they? Wirecard is not a bank despite Wirecard Bank) but the amount of trades that were executed during the fall is not as serious as it was portrayed in the media. If you look into it, you will see that it wasn't as serious. Naturally they would dumb their shares when the company is under forensic auditing by KPMG. Everybody who was holding onto the stock after that KPMG report was an idiot.
I’ve got 20 share in Wirecard hope they move up soon 😂
You're a dreamer. 😥
Fabian Stoll if you don’t have dreams what do you have my friend I got them for £1.50 a unit so I just keep them for now 🤤
@@R_R_7 I certainly don't have faith in them, but if they obliterate current management and all relationships with them, it might be possible
@@R_R_7 I wish you the best. In the worst case you lose your 30 Pounds and if you learn something it isn't so bad. But I am pretty sure the stock price will go to zero.
Great 👍🏿 video as always
Hi team, can you create a video that explains why the company hires audit companies and what are the other requirements a company should meet.
With this company being in the DAX I wonder if this could happen to a Dow or NASDAQ component
An extremely well covered con job that even the most senior executives claimed ignorant or simply, innocence. Well, look forward to the release of the book “ Bad Company” written by an ex EVP.
Can you be more specific?,or maybe write down the full infos on the book and the author itself.Thank You.
Great video
Please make an episode on economic danger of over evaluation of inteternet based companies like alphabet inc,Amazon, Netflix, alibaba,tencent etc.
price is what you pay, value is what you get. YOLO investment
Wherever there are financial loopholes where corruption can get its foot in the door, the greedy-money people will find a way to exploit the openings - - what's legal often isn't moral or ethical.
Good work
I just dont get it..how could big four missed for years..
Man, auditors are paid by the company they audit! In theory they should be independent, but in reality they are Not! If they start asking too many questions and create issues it will be bad for them. Essentially they are paid hundreds of thousands for their signature and keeping their mouths shut!
KPMG did the special audit! EY was the regular auditor for years !
I have read on The Trumpet website that Baron Karl Theodor zu Guttenberg was a member of this company.
So were did the money go? I checked under my mattress not there.
Ina few months, a video should be made about GSX. It had over ten different short reports regarding different aspects in a few months.
So if they werent really processing transactions, I'm assuming they were only able to pay their employees salaries solely on investor money?
*Bruh.*
5:38 Who needs BaFin. You could'a shown me that clown posing as CEO three years ago and I would have told you: not legit.
The problem isn't lack of oversight. The problem is no one is cross referencing CEOs with nearby enrolled kindergardeners.
Uhm, can you explain your last sentence?
@@geoffreycharles6330 Some CEOs, like the one from wirecard, may actually attent kindergarten - judging from his verbal intellect.
Wow
Same old story. Same ways people cheat and steal.😏 same ways people “trust” the cheaters and defend them. 🤦♂️
Fahmi Quadir, Safkhet Capital
Who signed the audit reports surely this is public information as it was a publicly traded company 🤔 🙄 😳 😐 😑
What does the word 'worth' mean?
EY , Softbank , & regulators were having sweet dream
Theranos looking at this like 👁👄👁
I wonder if any us companies are doing funny business too in this area that have seen surging stock prices.
Do a video on the basics like what’s an escrow account etc
Hahah!! :D I have $3 cards left in my wire card giftcard
Am I wrong to be buying Wirecard shares now, hoping for a resurgent?
Its selling everything to satisfy the bankruptcy. Once done it will be cancelled.
SoftBank just can't catch a break 😓
I miss other journalists who report this things
A bit high level. Nothing new if you read the headlines on a daily basis
Auditors happened to wire card...
why are you not wearing a mask outside?
5:57
Do videos on Indian tech companies.
ouch
Who's next?
"You may be wise but if you cheat you're acting like a fool."
-sirach
3:05
Unicorns are non public companies valued at over 1 billion dollars. Not the case with Wirecard.
Millions of retail investors are fucked again and again due to selfish decisions of a few top executives.
What???"Accounting Scandal" in the world of accounting profession...LMAO😜😂😁. This scandal is like "marriage/lover's scandal"...I treat this like reading the novel "50 Shades of Grey"(Areas of Accounting)😅😂😁😜. The "circus show" begins and the "blame game" is playing now.😛
The German Enron
Ooops.... EY strikes again.....
Softbank is the biggest fool in the business.
Wildcard
The worst part is they'll keep tracking even if you deny the permission, and if you do they'll track all the time
So even if I quit Facebook, they'll buy my data from Google and will show relevant ads to my friends
*OK TH-cam, if you guys are reading this, just don't delete this comment*
*If you're TH-cam bot, then HELLO*
wow softbank is taking one punch after another
One person suggested Softbank is a Saudi fraud, they cant be this stupid by investing in fraudulent companies. Softbank must be investigated.
just swinging by the comments because i saw how their stock is pretty much non existent
Gone too soon. Theranos, WeWork, WireCard
Too late you mean
First person to like and comment 😅
Classic
German ethics.
BITCOIN
Did he just call Softbank an "astute tech investor"? What the hell? lol
#ZimbabweanLivesMatter
Anybody After Hindenburg Adani Report?
2023
SoftBank again....
first volkswagen now wirecard, wtf germany you're basically china
seems British (English) "journalists", by way of publications like financial times etc. live off championing/predicting the demise of their neighbors and friends. and feel vindicated on the rare occasion that it comes to be.
Another fucking Enron lol
Ignoring common sense until the very end? Erm, ..... that's very German, I guess
I also could Imagine that the big companies and global players from Silikon walley Made wirecard go bankrupt
Didn't do their DD on Asian partners. Won't be the first time Asia turned out to be a con.
Remember Bearings Bank?
Fck financial legacy, crypto is here to stay
it's just capitalist doing capitalist things.
Am I the only one who’s never heard of Wirecard till this year 2020?