Huge German fintech company WIRECARD collapses.

[MarathonMike]

What? How can a publicly listed company like Wirecard keep fooling auditors for years? This is a major blow to Germany's financial industry, I'm not sure if this will ripple out into US banks.

'The money's gone': Wirecard collapses owing $4 billion

Wirecard collapsed on Thursday owing creditors almost $4 billion after disclosing a gaping hole in its books that its auditor EY said was the result of a sophisticated global fraud. The payments company filed for insolvency at a Munich court saying that, with 1.3 billion euros ($1.5 billion) of...

finance.yahoo.com

 

[Mikeoxenormous]

What? How can a publicly listed company like Wirecard keep fooling auditors for years? This is a major blow to Germany's financial industry, I'm not sure if this will ripple out into US banks.

'The money's gone': Wirecard collapses owing $4 billion

Wirecard collapsed on Thursday owing creditors almost $4 billion after disclosing a gaping hole in its books that its auditor EY said was the result of a sophisticated global fraud. The payments company filed for insolvency at a Munich court saying that, with 1.3 billion euros ($1.5 billion) of...

finance.yahoo.com

Nothing new, under the Clinton admin, ENRON who worked with the Clintons cooked their books causing the collapse of that energy sector thus giving US a recession that ran into the next admin...

How Cooking the Books Works

The Enron fraud case is extremely complex. Some say Enron's demise is rooted in the fact that in 1992, Jeff Skilling, then president of Enron's trading operations, convinced federal regulators to permit Enron to use an accounting method known as "mark to market." This was a technique that was previously only used by brokerage and trading companies. With mark to market accounting, the price or value of a security is recorded on a daily basis to calculate profits and losses. Using this method allowed Enron to count projected earnings from long-term energy contracts as current income.

 

[MarathonMike]

What? How can a publicly listed company like Wirecard keep fooling auditors for years? This is a major blow to Germany's financial industry, I'm not sure if this will ripple out into US banks.

'The money's gone': Wirecard collapses owing $4 billion

Wirecard collapsed on Thursday owing creditors almost $4 billion after disclosing a gaping hole in its books that its auditor EY said was the result of a sophisticated global fraud. The payments company filed for insolvency at a Munich court saying that, with 1.3 billion euros ($1.5 billion) of...

finance.yahoo.com

Nothing new, under the Clinton admin, ENRON who worked with the Clintons cooked their books causing the collapse of that energy sector thus giving US a recession that ran into the next admin...

How Cooking the Books Works

The Enron fraud case is extremely complex. Some say Enron's demise is rooted in the fact that in 1992, Jeff Skilling, then president of Enron's trading operations, convinced federal regulators to permit Enron to use an accounting method known as "mark to market." This was a technique that was previously only used by brokerage and trading companies. With mark to market accounting, the price or value of a security is recorded on a daily basis to calculate profits and losses. Using this method allowed Enron to count projected earnings from long-term energy contracts as current income.

In what I read, the Wirecard auditors were just way too trustful on what the data they were given. In other words instead of the complex trick that Enron ran, Wirecard execs were. just straight up lying. At least that was my first impression.