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German Payment Processor Wirecard has 1.9 Billion Euro on it's balance sheet "that doesn't exist"


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I doubt this is getting much play in the British press, so I would like to highlight this:

 

German Payment Processor Wirecard has 1.9 Billion Euro on it's balance sheet "that doesn't exist"

 

https://www.ft.com/content/2581fda5-8c89-46b5-9acf-ba8a88d74d88

 

I recon after this Corona disaster, we could start to see who has been swimming with trunks on!

 

Think about it, that is quite a lot of money in a formerly well respeced Fintech company, how many more out there?

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Ouch. Looks like someone's taken a $1.8bn loan and the cash has disappeared. Possibly wangled out via the phillipines... Will be interested to see how this develops is it a fraud, a covered up cyber theft? Who knows 

https://www.bloomberg.com/news/articles/2020-06-22/wirecard-says-missing-cash-likely-doesn-t-exist-pulls-results

Edited by regprentice
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I don't think it's theft, from the brief bits I've read on this It's a straightforward case of overstating revenue, most likely to get investment/customers. 

Overstate something on the income statement and you have to overstate the balance sheet too. Eventually it catches up to you. We've seen this before with that computer company in India (thst time it was PwC as auditors that was caught out, this time it's EY). 

Seems like the added angle here is that they've tried to pass off somebody else's money as their own (not unlike what tether is probably doing, for the crypto enthusiasts out there.)

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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