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Business & Finance

Reuters reports how Germany considered rescuing Wirecard days before its doom

The German government examined the possibility of bailing out Wirecard just three days before it collapsed, according to documents seen by Reuters showing that officials were blindsided by the country’s biggest post-war fraud scandal. The payment company filed for insolvency on June 25 last year, owing creditors almost $4 billion, after disclosing a 1.9 billion euro ($2.3 billion) hole in its accounts that its auditor EY said was the result of a sophisticated global fraud. On June 22, just hours after the company revealed the 1.9 billion euros in its accounts probably “do not exist,” Joerg Kukies, a deputy finance minister, sent a nine-page memo to Finance Minister Olaf Scholz, that played down concerns that the company was in imminent peril and outlined a plan to rescue it with funds from state bank KfW. 

Article Tags
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Equities
Regions: Europe
Countries: Germany
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
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