Wirecard goes out of business
Once a rising star in the financial startup world, Wirecard announced on Thursday June 25th that it was filing for insolvency
The stock market was alarmed beforehand, since the company's shares were suspended by the Frankfurt Stock Exchange earlier this week.
The Munich-based financial service provider collapses only two years after it finally gained admission to the prestigious DAX index, joining other famous blue-chip giants such as Adidas, Bayer, Deutsche Bank, Volkswagen and the list goes on.
To top things off, the company's auditor, EY, refused to sign off last year's accounts, not being able to trace €1.9 billion reflected in its balance sheet, Wirecard's CEO, Markus Braun resigned and was also arrested in suspicion of false accounting and market manipulation.
As of Tuesday, Wirecard's stock price dropped below $19, considering its former glory of trading at about $191 per share. How will the company move forward? Will the Management Board try to rectify all the issues that have arisen? Time will tell. In the meantime, let's hope that investors won't suffer high losses and that the company's staff won't lose their jobs.
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