Wirecard’s Stock Takes a Nosedive After FT Claims—Again
What started as a bright fintech star is now flickering like a dimmed neon sign. Wirecard’s shares dropped a staggering 19.6 % in a single trading session on Thursday, Feb 8, before quietly catching a breath of air to end the day down 15 % at €110.80.
FT’s Allegations: “You’ve Got to Be Kidding Me!”
The Financial Times thrust the company into the spotlight yet again, claiming that two senior execs at Wirecard’s headquarters were aware of a nasty “round‑tripping” scheme. In plain English: money was shuffled between Asian subsidiaries with the aim of inflating the books in the Singapore office.
This is no new story; it’s the third in a series of detailed reports that surfaced since the end of January.
Wirecard’s Response
- “We decisively reject the FT’s reporting,” the company said in a statement to AFP.
- “The article is completely untrue.” The spokeswoman added that she would pursue legal action to protect the company’s reputation.
No Immediate Crash Investigation
State prosecutors in Munich declared that there’s no sufficient evidence to launch an investigation against Wirecard’s management. Anne Leiding, senior prosecutor, said she could not find any grounds for suspicion. However, the authorities are exploring possible market manipulation that may have harmed Wirecard.
From Risk‑Taker to Titan
Markus Braun, who took the helm in 2002, once poured in a nifty €75 million of his own hustle‑cash—profit from successful tech bets. With his leadership, Wirecard stole the spotlight by taking Commerzbank out of the DAX index last year, and boasted a valuation topping 23 billion euros—racing even Deutsche Bank in the market.
Now, the Banking Regulator BaFin also says it will launch its own probe into suspected market manipulation following the FT reports.
Bottom Line
Wirecard’s shares have shed roughly a third of their value since the FT’s January 30 article. In the fast‑paced world of fintech, today’s scandal can be tomorrow’s fade‑in. Investors, lenders, and the point‑clinic of the German banking sector all keep their eyes on the next big twist in this saga.
