WireCard - hope this isnt another SATA

[nitehawk]

Looks like there could trouble here.

https://www.bnnbloomberg.ca/wirecard-showdown-stuns-analysts-raises-liquidity-questions-1.1452486

 

[JohnLocke]

I hope they will survive, they have been very helpful for me during the last‌ century.

 

[mrpayments]

BDO Unibank Inc., the Philippines’ largest bank by assets, and the Bank of the Philippine‌ Islands said in separate statements on Friday that Wirecard isn’t a client.

“It was a‍ rogue employee who falsified documents and forged the signatures of our officers,” BDO Unibank Chief⁠ Executive Officer Nestor Tan said in a mobile phone message. “Wirecard is not even a⁤ depositor -- we have no relationship with them”.

The Bank of the Philippine Islands said⁣ in a separate statement that Wirecard isn’t a client and it continues to investigate the⁢ issue.

Source : Bloomberg

 

[Silvio]

Oh wow, that's insane.

Looks like⁢ these issues have been going for a long time though:
https://valueandopportunity.com/202...rman-enron-a-very-personal-history-2008-2020/

 

[jakonda]

I think this will be the biggest German corp. fraud, oh and btw looks like‌ McKinsey guys are somehow sticked to large scale frauds Enron ex-McK, WireCard ex-Mck...

 

[jackfrost]

hasnt @Martin Everson or somebody else / multiple peopled warned about wirecard being a giant‌ shitshow for years?

 

[ih8socialism]

German news just reported that EY doubts that there have ever been 1.9bn lmao

 

[Martin Everson]

ECB should step in and revoke their license immediately. They have gone from scandal to‌ scandal.

 

[mrpayments]

Markus (CEO) quit about 2 hours ago. Had about 7600 deposits from Wirecard Customers today..‌ Good old fashioned run on the bank.

 

[Martin Everson]

Lol......don't paxumbank use‍ them? Think I read that somewhere. Glad they are going under.

Only a matter of⁠ time before VISA and Mastercard pull plug on them...run for your life.

 

[JohnLocke]

I'm afraid you are right, damn 🙁

 

[Fajosst]

What is the real risk for those who have cards issued by Wirecard and have‌ money saved in Payoneer?

 

[neweraoffshore]

@Fajosst

Link: Wirecard Bank AG
The German "Einlagesicherungsfonds" is like FDIC, so everything until 750k‌ should be safe (if the Eurozone doesn't collapse 😀 ) . So it'S 100k from the‍ "Entschädigungseinrichtung deutscher Banken" and 650k from the "Einlagensicherungsfonds" . Wirecard AG is a member of⁠ it.

However, their cards may get canceled and you won't be able to spend from⁤ cards from crypto.com, wirex and some more.

 

[NicolasMaduro]

Wirecard have always been a go to place for shady processing if you had the‌ volumes, seems like the past is coming to hunt them

 

[neweraoffshore]

Same here... but I think we can forget Wirecard.‍ If the 1.9 Mrd.€ are really missing, they will loose their license, they will be⁠ kicked out of the DAX and then all institutional investors who just bought Wirecard to⁤ meet their portfolio requirements have to force sell the stocks which will result in another⁣ crash... . Beside that, that Wirecard is useless without the license, haha.
Damn s**t...

 

[Marie Manila]

Many banks use Wirecard either for payments or even⁠ borrow some IBAN from them to act as a bank.
And yes, as far as⁤ I can remember Paxum are using them.

I don't think Mastercard or VISA will pull⁣ the plug.
They were not (yet) involved in any money laundry or breaking Mastercard /⁢ VISA / US rules. This is the different to wavecrest.
Wavecrest were onbording users without︀ KYC. I knew Iranians with wavecrest debit cards. They didn't ask for a passport or︁ any other KYC document.

Wirecard only has relations to institutions (pretending to) following KYC processes︂ and refuse to onbord customers from sanctioned countries.
On the other hand many institutions are︃ crypto related (wirex, TenX, crypto.com, XAPO and many more).

Nevertheless, the chance of getting the︄ licence from ECB revoked is much higher than getting the contracts with Mastercard or VISA︅ cancelled.

Are you︊ sure the 100.000 € are really safe? In most countries this "guarantee" doesn't work for︋ all products.
For example EMIs are not safeguarded. And as far as I know also︌ prepaid cards are usually not safeguarded either.

 

[mrpayments]

If they lose their license they will lose the criteria upon which the license with‌ the card schemes is based. Under EBA The schemes are considered "Governance Authorities" and having‍ a license (credit insto, bank, emi, pi) is a requisite for scheme membership.

EMI's and⁠ PI's are subject to safeguarding requirements however they are not part of deposit protection schemes⁤ which is what regulators focus on when examining an FI's Assets vs Liabilities as part⁣ of their supervisory duties. There are a few examples of EMI's not following this and⁢ going bust. See Supercapital Ltd in the UK last year as an example.

 

[Martin Everson]

Have Wirecard gone bust yet? Am I still too early? smi(&%

https://finance.yahoo.com/news/wirecard-least-18-lenders-existing-092943225.html

 

[Tax Cow]

This one is closer to my heart than Sata cry&¤cry&¤

Of course, the ECB will use‌ the opportunity to show all who's daddy. A few decent guys who work there don't‍ have a voice loud enough to make themselves heard among the louder commies.

To save⁠ the ECB, Germany should set up strict quotas to curb finance immigrants from France to⁤ Frankfurt. Only trust a Frenchman in the kitchen.

You're a bad⁢ person @Martin Everson

 

[neweraoffshore]

@Marie Manila 750k are safe by the Wirecard side. If the EMI uses their IBANs,‌ all IBANs are secured by 750k. It is more likely to be exit-scammed by the‍ EMI itself which has full control over the IBANs via the APIs as to loose⁠ money because of the Wirecard bankruptcy. As EMIs in the EU are required to have⁤ 100% of the bank deposit.

Even if Visa/Mastercard don't pull the plug, Wirecard may pull⁣ the plug themselves by going into bankruptcy. 1.9 bn € missing means that their creditors⁢ will cancel the credit lines. It was rumored that 2 bn € of credits will︀ be cancled on friday (yesterday) if Wirecard isn't able to finally show a balance. However︁ it's saturday and still nothing in the news yet that the loans were canceled. But︂ keep in mind that the Credit Default Swaps rose by 96% on friday. This means︃ that creditors are insuring themselves for credit defaults. Maybe they just waited to swap these︄ credits. 96% is insane...this means that the creditors which know more than we do and︅ put more pressure into knowing more because they gave Wirecard a s**t ton of money︆ are betting on a bankruptcy.
I hope i am wrong, but combining a missing 1.9︇ bn € + 2 bn € in canceled credits means 4 bn. € less liquidity︈ compared to a balance sheet of 5.875 bn. €. And if you look on the︉ balance here : WIRECARD Bilanz GuV | Kennzahlen | Umsatz | Gewinn | finanzen.net you can see that the total liabilities are 3.952 bn. € and the total equity is︊ 1.923 bn.€.... which is missing.... Ha! if the 2 bn. € get canceled, the remaining︋ credits will follow.... + that it won't be enough to stay in the DAX and︌ therfore funds, hedgefunds, ETFs etc. which are investing in DAX or Indexes are forced to︍ sell because their portfolio guidelines force them to sell if a company is not in︎ a top tier index anymore. Keep in mind that a lot of them didn't sell️ yet because they are not allowed to, as on the other hand they are also‌ forced to hold a stock if they are in a top tier index!

So they‍ better bribe the philiipine bank to testify that the 1.9 Mrd. € are existing, otherwise⁠ they are bankrupt next week.

//Edit: Aslo keep in mind that the cancelation of the⁤ credits means IMMEDIATELY payback as the missing equity was part of the contract and the⁣ credit contract will be therefore invalidated. They may even be liable to big contractual penalties⁢ for the breach of the contract by not having the required equity.