The BaFin regulatory failure was pretty spectacular too, despite the lid that the German establishment tried to put on it. Not so much has leaked out so far, mainly because prosecutors have declined to take much action against the regulator or its employees and officers, however what is known is pretty damning.
First, they ignored early - like TEN YEARS - and relatively continuous warnings about fraud at Wirecard.
Then they legally targeted journalists who pointed out misconduct at Wirecard (!!!)
Then they banned short-sellers from shorting Wirecard (!!!!!!) and indeed in internal memos mentioned that short-sellers were Israelis and British citizens in some kind of bigoted justification for the ban. Gross and disgusting, but perhaps par for the course in some levels of the government there.
They tried to cover up malfeasance within their own org, including at least one, but probably more employees undertaking insider trades on Wirecard before its failure.
But don’t be too worried about the poor chauffeur-driven bureaucrats at BaFin!
They’ve since reorganised and added more senior employees to an already bloated and ineffectual regulator who are culturally in bed with the regulated entities.
The gravy train must continue.
(Just reviewing what happened through internet searches has caused steam to come out of my ears again. What the actual fuck was BaFin doing all those years?)
First, they ignored early - like TEN YEARS - and relatively continuous warnings about fraud at Wirecard.
Then they legally targeted journalists who pointed out misconduct at Wirecard (!!!)
Then they banned short-sellers from shorting Wirecard (!!!!!!) and indeed in internal memos mentioned that short-sellers were Israelis and British citizens in some kind of bigoted justification for the ban. Gross and disgusting, but perhaps par for the course in some levels of the government there.
They tried to cover up malfeasance within their own org, including at least one, but probably more employees undertaking insider trades on Wirecard before its failure.
But don’t be too worried about the poor chauffeur-driven bureaucrats at BaFin!
They’ve since reorganised and added more senior employees to an already bloated and ineffectual regulator who are culturally in bed with the regulated entities.
The gravy train must continue.
(Just reviewing what happened through internet searches has caused steam to come out of my ears again. What the actual fuck was BaFin doing all those years?)