Finances

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German development bank KfW could lose €100 million from Wirecard insolvency
Wirecard Headquarters, Aschheim
Wirecard Headquarters, Aschheim Credit: Leo Molatore (Creative Commons Attribution 2.0)

KfW, Germany’s state development bank, could lose €100 million euros after Wirecard filed for insolvency last Thursday.

Ipex Bank, a KfW subsidiary, granted Wirecard the sum over a credit line two years ago and the funds were fully drawn down but were not hedged by Ipex.

Business • Economy
Shareholders plans to sue EY over its role in the Wirecard scandal
Shareholders plans to sue EY over its role in the Wirecard scandal
Credit: Kaethe17 (Creative Commons Attribution ShareAlike 4.0)

The German shareholders’ association SdK announced Friday that it had filed a criminal complaint against accounting firm at EY over its role in the Wirecard scandal.

According to news magazine Der Spiegel, SoftBank is also planning to sue EY after investing 900 million euros in Wirecard last year.

EY, told CNBC late Thursday that "even the most robust and extended audit procedures" couldn’t uncover what it called a “collusive fraud.”

Business • Economy
Wirecard declares bankruptcy
Wirecard declares bankruptcy
Credit: unsplash.com / Markus Winkler

The payment provider Wirecard has declared bankruptcy at the district court in Munich. The company announced that "The Management Board of Wirecard AG has decided to file an application for the opening of insolvency proceedings on behalf of Wirecard AG at the competent Munich Local Court due to the threat of insolvency and over-indebtedness". Previously irregularities in the balance sheet of the company had come to attention and the company now assumes that €1,9 billion at two Filipino banks do not exist.