Brussels to investigate German regulator over Wirecard

Friday 26 June 2020 14:59 CET | News

Brussels has announced it will call for a probe into whether Germany-based banking regulator BaFin failed in its supervision of Wirecard.

According to the Financial Times, Wirecard’s financial collapse might be a threat regarding investor trust in the EU. Moreover, Valdis Dombrovskis, the EU’s executive vice-president in charge of financial services policy, stated that the EU should pursue a formal investigation into the German regulator for ‘breach of union law’ if the preliminary probe by the European Securities and Markets Authority discovered shortcomings in BaFin’s upholding of EU rules on financial reporting.

Furthermore, the price of the company’s shares and bonds decreased after it admitted that EUR 1.9 billion of cash was missing and its former chief executive was arrested on suspicion of false accounting and market manipulation – resulting in the company filling for insolvency on 25 June 2020.

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Keywords: Brussels, Germany, Wirecard, BaFin, investor trust, Europe, EU, Valdis Dombrovskis, breach of union law, European Securities and Markets Authority, shares
Categories: Payments & Commerce
Countries: World
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