Germany Unveils Plans to Prevent Another Wirecard Debacle

(Bloomberg) — Germany has presented plans to strengthen financial regulator BaFin’s powers and tighten accounting rules, one day before the start of a parliamentary probe into one of the country’s biggest corporate failures.



a sign on the side of a building: The Wirecard AG logo sits on the company's headquarters during a police and prosecutors raid in Munich, Germany, on Wednesday, July 1, 2020. Wirecard offices in Germany and two locations in Austria were raided by Munich prosecutors looking into the 1.9 billion euros ($2.1 billion) that went missing from the fintech company’s accounts.


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The Wirecard AG logo sits on the company’s headquarters during a police and prosecutors raid in Munich, Germany, on Wednesday, July 1, 2020. Wirecard offices in Germany and two locations in Austria were raided by Munich prosecutors looking into the 1.9 billion euros ($2.1 billion) that went missing from the fintech company’s accounts.

The collapse of Wirecard AG this year exposed significant cracks in Germany’s financial oversight, as authorities failed to catch accounting issues at the digital-payments company despite ample warning. Slow decision-making and fragmented responsibilities appeared to allow the problems to go undetected.

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Finance Minister Olaf Scholz and Justice Minister Christine Lambrecht presented the government’s “Wirecard Action Plan” Wednesday at a news

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