Where Are Wirecard’s Missing Billions? 👻

Where Are Wirecard’s Missing Billions?

Wirecard was a high-flying payment processor, listed on the Frankfurt stock exchange as Germany’s symbol of innovation. But it fessed up to something massive last week; $2.1 billion in “missing” cash. The Invstr community went from 91% bullish on the name to almost a quarter-short in a matter of hours. The stock dropped like a stone, over 70%!

If it made that $2.1 billion in profit, someone, potentially management, has run off with it. If it didn’t make that $2.1 billion in profit, this is the biggest fraud in German history, because everything that generated the fake cash must have been fake, too.

CEO Markus Braun led investors to believe the cash was with two Filipino banks, just before handing in his immediate resignation. However, it took a quick phone call overseas to ascertain that not a single euro was with those banks.

$2.1 billion would have made up five percent of foreign currency deposits in the Filipino banking system. In other words, someone would have noticed. This is not a good look for Wirecard, its auditors, or regulators.

The news could shake Europe’s markets and cause investors to re-audit their stock picks, just in case. The coming footage of handcuffed executives trudging out of their high-rises could inspire political action from Angela Merkel, and an overhaul of regulator, BaFin.

If nothing else, these revelations underscore again how important vigilante short-sellers can be in our markets. It’s been a period of years since eagle-eyed bears dug deep into Wirecard’s financial statements to figure things were off. Finally, they can stop banging the drum. This is an excellent reminder of what patience is worth to an investor!

Share:

More Posts

What is a kids brokerage account?

A kid’s brokerage account is more accurately called a custodial account. This is a brokerage account that parents or legal guardians can open on behalf of their child.

Poll: Bailing Out the Banks 🏦

This week, we asked the Invstr Community, “Do you think the government should have stepped in and covered all deposits over the FDIC limit of $250K at Silicon Valley Bank?”

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.