WireCard - hope this isnt another SATA

[nitehawk]

Looks like there could trouble here.

Wirecard Showdown Stuns Analysts, Raises Liquidity Questions - BNN Bloomberg

Wirecard shares plunged as much as 66% after the company delayed publication of its annual financial results for the fourth time and revealed that auditors were unable to find about 1.9 billion euros ($2.1 billion) in cash.

www.bnnbloomberg.ca

 

[JohnLocke]

I hope they will survive, they have been very helpful for me during the last century.

 

[mrpayments]

BDO Unibank Inc., the Philippines’ largest bank by assets, and the Bank of the Philippine Islands said in separate statements on Friday that Wirecard isn’t a client.

“It was a rogue employee who falsified documents and forged the signatures of our officers,” BDO Unibank Chief Executive Officer Nestor Tan said in a mobile phone message. “Wirecard is not even a depositor -- we have no relationship with them”.

The Bank of the Philippine Islands said in a separate statement that Wirecard isn’t a client and it continues to investigate the issue.

Source : Bloomberg

 

[Silvio]

BDO Unibank Inc., the Philippines’ largest bank by assets, and the Bank of the Philippine Islands said in separate statements on Friday that Wirecard isn’t a client.

“It was a rogue employee who falsified documents and forged the signatures of our officers,” BDO Unibank Chief Executive Officer Nestor Tan said in a mobile phone message. “Wirecard is not even a depositor -- we have no relationship with them”.

The Bank of the Philippine Islands said in a separate statement that Wirecard isn’t a client and it continues to investigate the issue.

Source : Bloomberg

Oh wow, that's insane.

Looks like these issues have been going for a long time though:

Wirecard – the “German Enron” & a very personal history 2008-2020

For those who just came back from a 15 year space mission: Wirecard is a German company that according to its website is ” one of the world’s fastest-growing digital platforms for fina…

valueandopportunity.com

 

[jakonda]

I think this will be the biggest German corp. fraud, oh and btw looks like McKinsey guys are somehow sticked to large scale frauds Enron ex-McK, WireCard ex-Mck...

 

[jackfrost]

hasnt @Martin Everson or somebody else / multiple peopled warned about wirecard being a giant shitshow for years?

 

[ih8socialism]

German news just reported that EY doubts that there have ever been 1.9bn lmao

 

[Martin Everson]

ECB should step in and revoke their license immediately. They have gone from scandal to scandal.

 

[mrpayments]

Markus (CEO) quit about 2 hours ago. Had about 7600 deposits from Wirecard Customers today.. Good old fashioned run on the bank.

 

[Martin Everson]

Markus (CEO) quit about 2 hours ago. Had about 7600 deposits from Wirecard Customers today.. Good old fashioned run on the bank.

Lol......don't paxumbank use them? Think I read that somewhere. Glad they are going under.

Only a matter of time before VISA and Mastercard pull plug on them...run for your life.

 

[JohnLocke]

Only a matter of time before VISA and Mastercard pull plug on them...run for your life.

I'm afraid you are right, damn

 

[Fajosst]

What is the real risk for those who have cards issued by Wirecard and have money saved in Payoneer?

 

[neweraoffshore]

@Fajosst

Link: Wirecard Bank AG
The German "Einlagesicherungsfonds" is like FDIC, so everything until 750k should be safe (if the Eurozone doesn't collapse ) . So it'S 100k from the "Entschädigungseinrichtung deutscher Banken" and 650k from the "Einlagensicherungsfonds" . Wirecard AG is a member of it.

However, their cards may get canceled and you won't be able to spend from cards from crypto.com, wirex and some more.

 

[NicolasMaduro]

Wirecard have always been a go to place for shady processing if you had the volumes, seems like the past is coming to hunt them

 

[neweraoffshore]

I hope they will survive, they have been very helpful for me during the last century.

Same here... but I think we can forget Wirecard. If the 1.9 Mrd.€ are really missing, they will loose their license, they will be kicked out of the DAX and then all institutional investors who just bought Wirecard to meet their portfolio requirements have to force sell the stocks which will result in another crash... . Beside that, that Wirecard is useless without the license, haha.
Damn s**t...

 

[Marie Manila]

Lol......don't paxumbank use them? Think I read that somewhere. Glad they are going under.

Only a matter of time before VISA and Mastercard pull plug on them...run for your life.

Many banks use Wirecard either for payments or even borrow some IBAN from them to act as a bank.
And yes, as far as I can remember Paxum are using them.

I don't think Mastercard or VISA will pull the plug.
They were not (yet) involved in any money laundry or breaking Mastercard / VISA / US rules. This is the different to wavecrest.
Wavecrest were onbording users without KYC. I knew Iranians with wavecrest debit cards. They didn't ask for a passport or any other KYC document.

Wirecard only has relations to institutions (pretending to) following KYC processes and refuse to onbord customers from sanctioned countries.
On the other hand many institutions are crypto related (wirex, TenX, crypto.com, XAPO and many more).

Nevertheless, the chance of getting the licence from ECB revoked is much higher than getting the contracts with Mastercard or VISA cancelled.

@Fajosst

Link: Wirecard Bank AG
The German "Einlagesicherungsfonds" is like FDIC, so everything until 750k should be safe (if the Eurozone doesn't collapse ) . So it'S 100k from the "Entschädigungseinrichtung deutscher Banken" and 650k from the "Einlagensicherungsfonds" . Wirecard AG is a member of it.

However, their cards may get canceled and you won't be able to spend from cards from crypto.com, wirex and some more.

Are you sure the 100.000 € are really safe? In most countries this "guarantee" doesn't work for all products.
For example EMIs are not safeguarded. And as far as I know also prepaid cards are usually not safeguarded either.

 

[mrpayments]

If they lose their license they will lose the criteria upon which the license with the card schemes is based. Under EBA The schemes are considered "Governance Authorities" and having a license (credit insto, bank, emi, pi) is a requisite for scheme membership.

EMI's and PI's are subject to safeguarding requirements however they are not part of deposit protection schemes which is what regulators focus on when examining an FI's Assets vs Liabilities as part of their supervisory duties. There are a few examples of EMI's not following this and going bust. See Supercapital Ltd in the UK last year as an example.

 

[Martin Everson]

Have Wirecard gone bust yet? Am I still too early?

Wirecard Creditors Seek More Clarity Amid Talks Over Debt

(Bloomberg) -- Wirecard’s creditors are demanding more clarity from the company in return for the extension of almost $2 billion in financing after it breached terms on the loan, people familiar with the matter said.At least 15 commercial lenders, including Commerzbank AG and ABN Amro, are in...

finance.yahoo.com

 

[Tax Cow]

This one is closer to my heart than Sata

Of course, the ECB will use the opportunity to show all who's daddy. A few decent guys who work there don't have a voice loud enough to make themselves heard among the louder commies.

To save the ECB, Germany should set up strict quotas to curb finance immigrants from France to Frankfurt. Only trust a Frenchman in the kitchen.

ECB should step in and revoke their license immediately. They have gone from scandal to scandal.

You're a bad person @Martin Everson

 

[neweraoffshore]

@Marie Manila 750k are safe by the Wirecard side. If the EMI uses their IBANs, all IBANs are secured by 750k. It is more likely to be exit-scammed by the EMI itself which has full control over the IBANs via the APIs as to loose money because of the Wirecard bankruptcy. As EMIs in the EU are required to have 100% of the bank deposit.

Even if Visa/Mastercard don't pull the plug, Wirecard may pull the plug themselves by going into bankruptcy. 1.9 bn € missing means that their creditors will cancel the credit lines. It was rumored that 2 bn € of credits will be cancled on friday (yesterday) if Wirecard isn't able to finally show a balance. However it's saturday and still nothing in the news yet that the loans were canceled. But keep in mind that the Credit Default Swaps rose by 96% on friday. This means that creditors are insuring themselves for credit defaults. Maybe they just waited to swap these credits. 96% is insane...this means that the creditors which know more than we do and put more pressure into knowing more because they gave Wirecard a s**t ton of money are betting on a bankruptcy.
I hope i am wrong, but combining a missing 1.9 bn € + 2 bn € in canceled credits means 4 bn. € less liquidity compared to a balance sheet of 5.875 bn. €. And if you look on the balance here : WIRECARD Bilanz GuV | Kennzahlen | Umsatz | Gewinn | finanzen.net you can see that the total liabilities are 3.952 bn. € and the total equity is 1.923 bn.€.... which is missing.... Ha! if the 2 bn. € get canceled, the remaining credits will follow.... + that it won't be enough to stay in the DAX and therfore funds, hedgefunds, ETFs etc. which are investing in DAX or Indexes are forced to sell because their portfolio guidelines force them to sell if a company is not in a top tier index anymore. Keep in mind that a lot of them didn't sell yet because they are not allowed to, as on the other hand they are also forced to hold a stock if they are in a top tier index!

So they better bribe the philiipine bank to testify that the 1.9 Mrd. € are existing, otherwise they are bankrupt next week.

//Edit: Aslo keep in mind that the cancelation of the credits means IMMEDIATELY payback as the missing equity was part of the contract and the credit contract will be therefore invalidated. They may even be liable to big contractual penalties for the breach of the contract by not having the required equity.