Wirecard-scandal: get Out of the Dax!

Wirecard needs to get out of the Dax. The company has submitted the application on a insolenz method, the first customers are gone, the shareholders anyway, and

Wirecard-scandal: get Out of the Dax!

Wirecard needs to get out of the Dax. The company has submitted the application on a insolenz method, the first customers are gone, the shareholders anyway, and the insolvency administrator collects those interested, to be able to parts of Wirecard yet somehow silver. The vibrations of the once-acclaimed stock-market stars of Bayern are now up to the political Berlin is palpable. Who had previously believed that in the case of Wirecard Murphy's Law applied – so everything went wrong, and what could go wrong – that is on the wrong track. Wirecard went wrong, and what would never go wrong.

What is failure, what is system failure, what was perhaps even intent, is still unclear. Who bears the responsibility for this scandal in the end to what extent, is not yet foreseeable. The consequences of not. Supervision, tester, policy, Supervisory Board, Board of Directors, it's all a big fog wall on a daily basis, rather larger than smaller.

stock refers to rules

For a strong Signal could, at least, the German stock exchange, by subjecting Wirecard from the Dax 30. Because what is such a company in an Index, which should reflect one of the 30 most valuable companies in Germany? Nothing. If the petition is not sufficient to catapult Wirecard from the index, then at least one criterion, to the stock exchange keeps the otherwise great pieces: the stock market valuation, i.e. the market capitalisation. Wirecard was the inclusion in the Dax two years ago, to around 25 billion euros in value, there are currently around 300 million euros.

The stock market refers to the applicable rules. The composition of the Index will be regularly reviewed, the next date for it to stand in September. This should stop the Dax belonging to the Wirecard actually. Until then, there are still around two months. So time passes again. It seems to be symptomatic for this case of fraud, that no one sees the urgency to Act. For many years, the Board is able to switch a Chairman, far away from any "code of conduct for good corporate governance" in the exercise and, as he pleased.

Who is talking with large institutional investors, always gets the same soft statement: "We have addressed the strong position of the Chairman of the Board in many discussions held with Investors and on the topic of Governance repeatedly pointed out." Result: the Chairman of The Board Markus Braun was considered to be irreplaceable. His departure at Wirecard was considered almost impossible. Wirecard remained lying in many mutual funds, the Fund companies and the prospect of price gains were just too tempting – even until shortly before the bankruptcy filing,

The wait-and-see attitude of the stock exchange an error

Wait for tea drinking was also the case for the controller is. For months, the balance was taken away. A rule-compliant statements was – now we don't know why – possible. That should, perhaps, call'd by the auditors of the auditors on the Plan, fail to display. Time comes-advice comes. The wait-and-see attitude on the stock market is a mistake. Maybe the rules of the procedure, but in a sense they are not so. On the contrary, The stock market is equity investors a disservice.

Updated Date: 14 July 2020, 11:19

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