Connect with us
wirecard1000x600 wirecard1000x600

News

Wirecard Shares : Downgraded to Junk Status

The turbulent payment processor Wirecard has to cope with another blow to the neck. After the certificate refused by EY due to the lack of supporting documents for EUR 1.9 billion in trustee accounts (“balance sheet irregularities”) and the crash of the Wirecard shares, the rating agency Moody’s classified it’s shares as junk. 

Moody’s analysts lowered the rating on Friday evening from Baa3 by several levels to B3 (junk). This category is usually avoided by long-term investors. Due to the recent irregularities in the balance sheet, Wirecard bonds are now classified as highly speculative, Moody’s said. A further grading to a C level will be examined.

At the beginning of June, the rating agency announced that it would review the already poor Baa3 rating. Now the analysts refer to the missing receipts for trustee funds worth billions.

Wirecard stock crashes

On the stock market, the gradation in late Friday trading caused prices to fall. After a Xetra close at EUR 25.83 – from the previous day’s loss of almost 62 percent, another daily minus of 35 percent – Wirecard shares fell to EUR 24 after trading hours. The daily low and at the same time the lowest level since the beginning of 2013 had marked the DAX at 19.50 euros.

At the broker Lang & Schwarz, which can also be traded on Saturday, Wirecard shares temporarily traded at EUR 22.25, almost 14 percent below their Xetra closing on Friday.

The daily turnover was exceptionally high at around two million euros.

After Markus Braun’s resignation as CEO, Wirecard shares temporarily recovered to 30 euros.

Update: At the broker Lang & Schwarz, which can also be traded on Saturday, Wirecard shares temporarily traded at € 22.25 today, around 14 percent below their Xetra closing on Friday. The daily turnover was exceptionally high at around two million euros.

The decisive factor for the future of the company will be whether the banks turn off the tap and make use of the option to terminate loans of two billion euros. Wirecard gave investors some hope late Friday evening: The company was in “constructive talks” with its lending banks. According to Wirecard, the banks would be entitled to terminate the contract if the company did not present audited annual accounts but this did not help the share price in the short term.

Evidence of major fraud

Before Braun’s fall, the evidence for a large-scale fraud case had condensed. The Philippine bank BDO Unibank, which allegedly held one of two suspicious escrow (Trust) accounts for Wirecard, said on Friday that the German company was not a customer: “The document claiming the existence of a Wirecard account with BDO is a manipulated document with bogus signatures of bank employees, “it said in the statement of the Southeast Asian banking house and “The case has been reported to the Central Bank of the Philippines.”

The balance sheet scandal centers on two Asian banks and a trustee who has been managing accounts for Wirecard since the end of last year. The accounts reportedly had 1.9 billion euros posted. However, the auditors working for Wirecard now doubt that these 1.9 billion euros actually exist and EY (Ernst & Young) has therefore not audited the annual financial statements.

DWS wants to sue Wirecard

The fund company DWS, which belongs to Deutsche Bank, wants to go to court against Wirecard and its previous boss. “We are suing Wirecard and Markus Braun,” said a DWS spokesman. The head of the DWS flagship fund, Tim Albrecht, told the Frankfurter Allgemeine Zeitung on Saturday: “To protect our investors, we have to find out to what extent the company or Mr. Braun is to be blamed for failures.”

Albrecht emphasized: “We are also calling for a new start for the executive board and the supervisory board. The chairman Thomas Eichelmann has also exhausted all trust after a very short time.” Just a few months ago, DWS had been among Wirecard’s major shareholders with its funds, but most recently it had sold down its holdings. 

As unfortunate the Wirecard crash is for the company and the still committed investors – the future of the once so dazzling German company is currently in a gloomy light.

Given the current facts, it is unlikely that the DAX value will recover sustainably in the foreseeable future.

How useful was this post?

Click on a star to rate it!

Average rating 4.2 / 5. Vote count: 41

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

Reporting mainly on the Asia Pacific region and the global Coronavirus crises in countries such as the United States, Mainland China, Brazil, Mexico, Italy and Germany. Love to Travel and report daily on destinations reopening with a focus on Domestic travel within Europe, North America and the Caribbean. Fan of the English Premier League , the German Bundesliga,, the Spanish La Liga.

Latest Articles

india1000x600 india1000x600
India8 hours ago

Overwhelmed Indian Hospitals reject Covid 19 Patients

India is now the country with the fourth most corona infections and the country’s healthcare system is collapsing under this...

The main road of Sonagachi in Kolkata, India, during the lockdown in early April 2020. | Mukherjee Arindam/ABACA/ABACA/PA Images. All rights reserved. The main road of Sonagachi in Kolkata, India, during the lockdown in early April 2020. | Mukherjee Arindam/ABACA/ABACA/PA Images. All rights reserved.
India8 hours ago

Shutting down India’s red-light districts won’t contain coronavirus

Closing brothels in India would be a grand but empty gesture. It will only hide the state’s abandonment of migrants...

india1000x600 india1000x600
India8 hours ago

High number of new Covid-19 Infections in India again

Despite the almost two-month curfew, India once again reports a daily record for infections with the corona virus. The Ministry of...

marsalek-andwirecard marsalek-andwirecard
News1 day ago

The Bizarre Life of Jan Marsalek, the Number 2 at Wirecard – Eating Sushi from a naked woman’s body

The name Jan Marsalek now stands for one of the largest economic scandals in Germany. With Wirecard AG, he managed to...

pennystockwirecard pennystockwirecard
News1 day ago

Wirecard Shares on the way of Becoming a Penny Stock !

Wirecard has filed for bankruptcy and the business, or what is left of it, practically belongs to the creditors. Nevertheless,...

marsalek1000x600 marsalek1000x600
News2 days ago

Jan Marsalek Ex-COO of Wirecard AG – Catch me if you Can

Jan Marsalek, former Wirecard board member and COO, is sought worldwide and should be on EUROPOL and INTERPOL during this...

db1000x600 db1000x600
News2 days ago

Deutsche Bank is considering taking over Wirecard Bank

At the beginning of the week it still looked as if Wirecard’s Bank would also go into bankruptcy because too...

payoneer1000x600 payoneer1000x600
News2 days ago

Thousand’s of Payoneer Mastercard Holders still Affected by Wirecard UK and can’t Access their Funds in Pakistan Bangladesh & Balkan countries

Many of Payoneer’s millions of Freelancers have their freelance work paid into the card account, which is easier to open...

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report. Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.
News3 days ago

Singapore extends investigation into Wirecard Scandal with Citadel & Senjo Group

After IsaanLive reported last Thursday extensively on the Round-Tripping with Senjo Group based in Singapore, the Singapore authorities are expanding their...

Jan Marsalek1000x600 Jan Marsalek1000x600
News3 days ago

Wirecard : The Indian Round-Tripping Scam by COO Jan Marsalek

Was Wirecard’s Indian acquisition deliberately structured to generate round-trip profits through EMIF? Key questions about about Wirecard’s Indian business and...

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report. Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.
News3 days ago

Wirecard Round-Tripping Scam with Singapore & Luxembourg Companies

As we’ve been searching for where Wirecard’s MCA business is (and the bulk of it looks not to be in...

wirecardbank1000x600 wirecardbank1000x600
News3 days ago

Wirecard’s Merchant Cash Advance Scam in Brazil & Turkey

In November 2018 Wirecard claimed it had launched a new Merchant Cash Advance (MCA) Product and in both May and...

Jan Marsalek1000x600 Jan Marsalek1000x600
News3 days ago

Ex-Wirecard COO Jan Marsalek is wanted in Manila – Could he be in Mindanao Hiding?

Jan Marsalek, may be hiding in the Philippines. The COO had been fired last week and was responsible for day-to-day...

The Great Wirecard Scam The Great Wirecard Scam
News3 days ago

The Fall of Wirecard, Fraud, Round-Tripping, Money Laundering and the Web of Lies

It is not the first time, now in Germany, already back in 2017 they conducted the same schemes in Singapore...

markus-braun-103__v-videowebl markus-braun-103__v-videowebl
News3 days ago

Six Wirecard subsidiaries file for Bankruptcy – Balance Sheet Fraud has been going on since 2014

The Wirecard balance sheet scandal seems to be taking on ever larger dimensions. According to a media report, the management team...

Trending Now