Tag: Germany

Ernst & Young’s Germany Branch Escapes Wirecard Fraud Lawsuit

A German accounting firm affiliated with, but distinct from, Ernst & Young Global Ltd. won’t remain in a US investors’ suit over the collapse of Wirecard AG, a finance company that allegedly invented fictional escrow accounts worth €1.9 billion. Ernst & Young GmbH Wirtschaftspruefungsgesellschaft lacks enough of a link to the US to be sued in federal court in Pennsylvania…

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No Safety Net From Crypto Collapses, German Regulator Warns

Investing in cryptocurrencies could mean you lose all your money because there’s no state-sponsored protection, Germany’s financial regulator BaFin said Monday, in a toughening of previous warnings to retail investors. *** If trading platforms or wallet providers turn south or go bust, “there is no protection covering customer losses, such as deposit guarantee schemes or investor compensation schemes,” the statement…

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Wirecard: Bafin Faces Criminal Probe Over Wirecard Supervision, Trading – Bloomberg

The scandal over the collapse of Wirecard AG expanded as German financial regulator BaFin faces a criminal probe into how it oversaw the payment processor and whether some of the agency’s staff illegally traded the stock. Frankfurt prosecutors said Monday they opened the probe after reviewing information collected from BaFin in February when they visited the regulator’s offices. Source: Wirecard:…

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German parliament to open full inquiry into Wirecard collapse | Financial Times

The German parliament is to hold a full inquiry into the collapse of Wirecard amid mounting questions as to why the government failed to prevent the biggest corporate fraud in the country’s postwar history. The decision ensures that the Wirecard affair will dominate German politics in the lead-up to next year’s Bundestag elections and could cast a shadow over Chancellor…

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German Market Watchdog Let Staff Trade in Wirecard Shares – WSJ

While BaFin staff was buying and selling Wirecard shares, BaFin was investigating the company based on media reports about suspected accounting manipulation at its unit in Singapore and an anonymous complaint it received in early 2019. BaFin, as a financial supervisor, also directly oversees Wirecard Bank, which is part of Wirecard. “It certainly does not help to build market confidence…

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