WIRECARD: AUDITORS CANNOT VERIFY 2 BILLION CASH. Less 66% on the stock exchange. It smells like Parmalat….

Wirecard, a German financial services and credit card company, also virtual, is in trouble and has had to postpone the approval of the 2019 financial statements. The reason is very simple: the auditing company cannot verify the cash register. The official auditor, Ernst & Young, had to admit that he could not give certainty to the cash values ​​for 1.9 billion euros and admitted it with the following words:

"There are indications that spurious balance sheet data were provided " which created "a wrong perception of the existence of these cash values ​​in the balance sheet or that there were current accounts in favor of the wirecard group companies" "The management of Wirecard is actively working with the auditor to clarify the situation "

Of course, the company took a good beating on the stock exchange, with a -66%.

How did the CEO of Wirecard react? He filed a "Complaint Against Unknowns" for the disappearance of cash funds, as if the company was not his, but someone else's, and he had only arrived yesterday. Now in finance you are used to hearing it of all colors, but here we have abundantly overcome the ridiculous wall. Also because the accusation that he moves seems written to sow even more chaos: to give the wrong communications that led to the cash hole would be nothing less than a bank! If so, the hole would widen to the whole credit system.

Meanwhile, the Wirecard convertible bonds, maturing in 2024, yield 0.5% are trading at a value of 50 out of 100.

In short, the stench you feel is from another "Parmalat" case of Tanzi, a company that went bankrupt because the cash values, deposited in a company in a tax haven, actually did not exist. the case is even worse because in this case it involves a finance company, linked to payments, and the German credit system. Many aim to get her kicked out of the DAX, but surely, for the umpteenth time, BaFin, the German financial control body, does not make a good impression.

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The WIRECARD article : AUDITORS CANNOT VERIFY 2 BILLION CASH. Less 66% on the stock exchange. It smells like Parmalat…. comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/wirecard-gli-auditor-non-possono-verificare-2-miliardi-di-cassa-meno-66-in-borsa-si-sente-puzza-di-parmalat/ on Thu, 18 Jun 2020 14:19:37 +0000.