This is the best tl;dr I could make, original reduced by 86%. (I’m a bot)
Wirecard has collapsed owing creditors almost $US4 billion after disclosing a gaping hole in its books that its auditor EY said was the result of a sophisticated global fraud.
Wirecard’s implosion came just seven days after EY, its auditor for more than a decade, refused to sign off on the 2019 accounts, forcing out chief executive Markus Braun and leading it to admit that $US2.1 billion of its cash probably didn’t exist.
“The Wirecard case damages corporate Germany. It should be a wake-up call for reforms,” said Volker Potthoff, chairman of corporate governance think-tank ArMID. Creditors have scant hope of getting back the €3.5 billion they are owed, sources familiar with the matter said.