Shares of Wirecard ( OTC:WCAG.Y) fell 30% on Friday after the German payment company's founder resigned. The stock is down more than 70% for the week as investors try to make sense of a deepening accounting scandal at the company.
Why did Wirecard stock fall 30% after its founder resigned?
Shares of Wirecard ( OTC:WCAG.Y) fell 30% on Friday after the German payment company's founder resigned. The stock is down more than 70% for the week as investors try to make sense of a deepening accounting scandal at the company.
Will Wirecard's share price ever hit zero?
Despite its spectacular descent into insolvency last month, Wirecard ’s share price has not yet hit zero. Last week, Munich prosecutors raided the offices of the German payments giant, widening the investigation into the company to include fraud. It follows an accounting scandal and the arrest of former CEO Markus Braun.
Will Wirecard AG's (wcagy) stock recover its reputation?
It’s also worth noting that Wirecard AG’s scandal is being turned into a documentary, assuring that it will be some time before it has a chance to regain its reputation. WCAGY stock was up 147% as of noon Tuesday.
How much did Wirecard owe in bankruptcy?
When it filed for insolvency on June 25, Wirecard owed almost $4 billion to creditors. It admitted that $2.1 billion was missing from its balance sheet and probably does not exist.
Why Wirecard stock drop?
Wirecard's share price crashed on Thursday after the fintech filed an application to start insolvency proceedings. The company's former CEO Markus Braun was arrested this week on suspicion of market manipulation and false accounting practices.
What went wrong with Wirecard?
KPMG challenged the authenticity of Wirecard's profits from 2016 to 2018, citing a glaring lack of evidence, such as no bank statements showing income received. KPMG could not confirm at least 34 Wirecard clients and at least €1 billion in cash. Wirecard had fabricated at least three years of profits.
Will a Wirecard ever recover?
One such is Wirecard, the insolvent German former card processing company. Varied speculators seem to keep having a go at it. Don't follow them. There really is no value here, it was a vast fraud and there will be no recovery for the shareholders....About WRCDF.SymbolLast Price% ChgWRCDF0.00350.00%Jan 20, 2021
Is Wirecard going out of business?
Wirecard collapsed in June after auditors found a $2 billion hole in its balance sheet. German prosecutors are investigating former Wirecard officials over accounting fraud and money laundering.
What will happen to Wirecard stocks?
The company will be removed from the exchange after Nov. 15, with others such as Stuttgart set to follow. The shares kept trading after Wirecard filed for insolvency in 2020 in one of the country's biggest corporate scandals, with the stock subsequently becoming more of a gamble among retail traders.
Is Wirecard a good stock to buy?
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding WIRECARD AG is 'Not Rated'. Macroaxis provides WIRECARD buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WIRECARD positions.
Who took over Wirecard?
Santander BankThe company is being dismantled after it sold the assets of its main business unit to Santander Bank for €100 million in November 2020. Other assets, including its North American, UK and Brazilian units had been previously sold at undisclosed prices.
Who is buying Wirecard?
Banco Santander has acquired technology assets from the European merchant payments business of disgraced German payments processor Wirecard. Around 500 employees currently managing the acquired assets will become part of Santander's global merchant services team under the umbrella of the Getnet global franchise.
How much money does Wirecard owe?
It follows an accounting scandal and the arrest of former CEO Markus Braun. When it filed for insolvency on June 25, Wirecard owed almost $4 billion to creditors. It admitted that $2.1 billion was missing from its balance sheet and probably does not exist.
Where is the Wirecard logo?
The Wirecard logo is seen at the payment company’s headquarters in Aschheim near Munich, southern Germany, on June 24, 2020.
Did Bafin look into Wirecard fraud?
BaFin failed to look into Wirecard’s fraudulent accounts, German lawmaker says. Squawk Box Europe. However, last week the company vowed to continue business operations despite the insolvency and stated that “numerous interested parties worldwide have already expressed their interest in acquiring business units.”.
Where is Wirecard based?
To start with, Wirecard AG is a dishonored financial tech company based out of Germany. The company was caught up in a fraud case last year that saw several of its top executives facing criminal charges. That includes alleged money laundering and falsifying records.
Who bought the company of the sandbox?
After all of this, the company ended it being sold off in parts. The main part of the company’s business was bought by Santander Bank, a subsidiary of Santander Group (NYSE: SAN ).
Does William White have any positions in the securities mentioned in this article?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.