![]() Blocks market cap is below US$25 bn – well below the 2021 price ❌ Its deeply flawed US$29 bn takeover of BNPL apps Afterpay/Clearpay which now only delivers 7% revenue still haunts Block. ❌ A recent 6-day global blackout at Square has caused major ructions and the CEO of Square departed replaced by Dorsey himself (hands off won’t cut it) ⚠ The Information reports details of the cultural divide within Block and Dorsey’s hands off style – hardly suitable for the issues facing management ⤴ His real issues are tied up with Block – its shares have tanked down 86% from peak price US$289.23 to recent close US$40.96 The once feted start-up ‘genius’ is having a rough time – Twitter, his pride and joy has been put down the Musk ‘sink’! Value is trashed, Musk paid US$44 bn for Twitter (now X valued US$19 bn), losing revenues and customers, fired 80% of staff, cut costs and won’t pay rent!ĭorsey has tried to work up an alternative to Twitter, BlueSky which debut in Jan 2023 How can it be fair though to suggest that in general Fintech's are not regulated, due to this outlier? They refused to regulate them, but they sure didn't mind facilitating them! They chose to bat away all of the investigators, (and his employers) concerns, instead of start to investigate them it seems. They chose to investigate him and threaten the Financial Times at the same time for "market manipulation", whilst publicly rowing in behind Markus Braun's "Fake News" agenda, without question. However, Bafin chose to investigate Dan McCrum, the investigative journalist who had to work so incredibly hard to expose concerns around Wirecard. "Sending clear message about the lack of regulation of Fintech's who act like banks".īafin bizarrely have been found in court to not be liable for recourse as they claim they could not supervise Wirecard Bank AG as Wirecard AG was classified as a tech company and not a financial holding. One piece of your post that I wonder about. This is far from over and has consequence well beyond Germany for Fintech and regulators.ĮY fined, banned from some audits in Germany over Wirecard scandalīizarrely, in Germany, 4 key auditors in this case handed back their professional licences and left the profession to avoid Apas probes and sanctions regarding Wirecard! “This has been a deeply challenging chapter for our organization, and for EY Germany in particular,” he said, adding: “It is not an audit EY Germany is proud of.”ĮY Germany said in a statement that it would examine the APAS decision “carefully” but had not yet received the detailed legal conclusion In auditing like any ‘profession’ reputation is critical and EYs has been shredded which is impacting its ability to gain new clients – in a classic understatement EY German head said Further investigations are ongoing with possible criminal chargesĪPAS statement says it “considered violations of professional duties during the audits of Wirecard and Wirecard Bank from 2016 to 2018 as proven” The ex-CEO and two Executives are currently on trial for fraud in Frankfurt, this case will feed other actionsĮY is banned from taking on new public clients in Germany for two years following an investigation by regulator APAS into its ‘flawed’ audit work at collapsed Fintech payment processor WirecardĮY was fined €500,000 by the audit watchdog and five current and former employees were also fined. It emerged since the collapse German regulator BaFin didn’t act soon enough – despite repeated calls over a seven-year period The collapse also rates as the largest Fintech failure globally costing investors US$12 billion and sending clear message about the lack of regulation of Fintech’s who act like banks Wirecard had received clean unqualified audits from EY for more than 10 years Wirecard collapsed June 2020 in Germany’s biggest accounting scandal, after fraud was disclosed with half of its claimed revenue not existing ![]() WIRECARD DAMAGE CONTINUES – EY BAN IN GERMANY
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