OLD Media News

Wirecard says missing billions never existed

Fintech Wirecard has said the some $2.1 billion it booked into its accounts likely never existed.

Patricia Uhlig, Karen Lema, and John O’Donnell reported the news for Reuters:

Wirecard said on Monday that 1.9 billion euros ($2.1 billion) it had booked in its accounts likely never existed, a black hole that threatens to engulf the payments company and tarnish the reputation of Germany’s financial watchdog.

The one-time investor darling is holding emergency talks with its banks, which are owed roughly 1.75 billion euros, to avert a looming cash crunch triggered by the missing money.

Charles Riley from CNN wrote:

Shares in Wirecard (WCAGY) plunged in early trading on Monday. The stock has lost more than 85% over three trading sessions — wiping out $12.5 billion in market value — since EY, its auditor refused to sign off the company’s accounts.

On Monday, the company withdrew its preliminary results for 2019, the first quarter of 2020 and its profit forecast for 2020. It warned that financial results from previous years may also be affected.

CNBC’s Ryan Browne reported:

The search for the missing cash appeared to hit a dead-end after two Asian banks alleged to be holding the missing cash — the Philippines’ BDO and BPI —  both denied having Wirecard as a client. Further compounding those fears, the Philippines’ central bank said Sunday that the money hadn’t even entered the country’s financial system.

“The initial report is that no money entered the Philippines,” Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Sunday, adding that the names of BDO and BPI were used “in an attempt to cover the perpetrators’ track.”

Irina Slav

Recent Posts

Indianapolis Biz Journal seeks a news editor

The Indianapolis Business Journal is looking for our next news editor, a role that focuses…

11 hours ago

Axios hires Berkowitz as ME for media and markets coverage

Axios has chosen Ben Berkowitz to be its next managing editor of business and markets.…

16 hours ago

Business Insider hires Ortega as director of newsroom operations

Business Insider editor in chief Jamie Heller sent out the following on Monday: I'm thrilled…

16 hours ago

Rest of World promotes Chandran to deputy editor

Rest of World editor in chief Anup Kaphle sent out the following on Monday: We are excited…

17 hours ago

FT hires Venugopal as India newsletter editor

The Financial Times has hired Veena Venugopal as its India newsletter editor. She has been working at…

17 hours ago

FT taps Parkin to be Middle East and Africa news editor

Benjamin Parkin has been named Middle East and Africa news editor at the Financial Times, based…

20 hours ago