Wirecard, Once Germany’s Pride, Turns National Embarrassment
- Market regulator criticized after payment company’s stock rout
- Finger-pointing erupts in Germany after repeated warnings
Markus Braun, former chief executive officer of Wirecard AG.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The company once hyped as the future of German finance has become a symbol of national embarrassment.
After promising to shake up the world of payments, Wirecard AG saw its stock collapse and its chief executive officer resign after 1.9 billion euros ($2.1 billion), or about a quarter of its balance sheet, went missing. It subsequently withdrew its fiscal 2019 and first-quarter 2020 financial results after saying those funds on its balance sheet didn’t exist. That was a bombshell for Germany’s establishment after it defended Wirecard from critical investors who have long warned of accounting irregularities.