Despite announcing last week that it was working closely with the German financial watchdog BaFin and the administrators of the collapsed fin tech giant Wirecard about offering any possible support to the banking wing of the collapsed company Wirecard Bank, Deutsche Bank said this week that it was too early to say how it might help Wirecard Bank. This was commented by Deutsche Bank’s chief executive.
The CEO of Germany’s largest bank, Christian Sewing, said that it was “almost an obligation” for it to view at Wirecard Bank for opportunities or to stabilize it because his company was focused on transaction banking, even though he said that it was “too early to judge” he exact manner in which Deutsche Bank could get involved in the banking venture of the failed fintech company.
“We all now need transparency and that’s the first task,” Sewing said during a comment at a webcast event that was organised by Bloomberg News.
It there was necessity of providing any assistance and support, it was ready in principle to support Wirecard Bank “in the context of a continuation of business operations”, Deutsche Bank had said last week.
With an overhanging debt pile of 4 billion euros ($4.51 billion) after Wirecard filed acknowledged that it was unable to trace 1.9 billion euro which could not be accounted for during its audit, the fin tech giant applied for insolvency last month. The long time auditor of the company EY said that the missing money and its untraceability was a result of the amount being siphoned off in a sophisticated global fraud.
Sewing said Deutsche Bank’s exposure to the incident was very limited.
In a separate development, stronger regulation of payment providers at meeting this week is set to be discussed by European Union finance ministers according to reports quoting a German government official.
“Europe-wide rules are urgently required,” the official reportedly told some news media outlets. There has been criticism of Germany’s financial regulator after the Wirecard incident came to light and after the very sudden and very quick collapse of the former fin tech star as a consequence.
(Source:www.financialpost.com)
The CEO of Germany’s largest bank, Christian Sewing, said that it was “almost an obligation” for it to view at Wirecard Bank for opportunities or to stabilize it because his company was focused on transaction banking, even though he said that it was “too early to judge” he exact manner in which Deutsche Bank could get involved in the banking venture of the failed fintech company.
“We all now need transparency and that’s the first task,” Sewing said during a comment at a webcast event that was organised by Bloomberg News.
It there was necessity of providing any assistance and support, it was ready in principle to support Wirecard Bank “in the context of a continuation of business operations”, Deutsche Bank had said last week.
With an overhanging debt pile of 4 billion euros ($4.51 billion) after Wirecard filed acknowledged that it was unable to trace 1.9 billion euro which could not be accounted for during its audit, the fin tech giant applied for insolvency last month. The long time auditor of the company EY said that the missing money and its untraceability was a result of the amount being siphoned off in a sophisticated global fraud.
Sewing said Deutsche Bank’s exposure to the incident was very limited.
In a separate development, stronger regulation of payment providers at meeting this week is set to be discussed by European Union finance ministers according to reports quoting a German government official.
“Europe-wide rules are urgently required,” the official reportedly told some news media outlets. There has been criticism of Germany’s financial regulator after the Wirecard incident came to light and after the very sudden and very quick collapse of the former fin tech star as a consequence.
(Source:www.financialpost.com)
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