The BaFin worker allegedly bought structured securities only a day earlier than an enormous fraud scandal engulfed “fintech” star Wirecard. Germany’s monetary regulator BaFin reported certainly one of its workers to state prosecutors on Thursday over suspicions of insider buying and selling linked to Wirecard’s collapse final yr. The worker, who works in BaFin’s securities supervision division, “bought structured merchandise” based mostly on Wirecard’s shares on June 17 final yr, the regulator stated in an announcement.
The subsequent day, Wirecard admitted that it was unable to account for € 1.9 billion ($ 2.three billion) in belongings. Per week after that, the cost agency filed for insolvency. What did the regulator discover?
BaFin stated it uncovered the alleged case of insider buying and selling whereas reviewing the personal inventory market actions of its employees the place Wirecard’s share worth might have had an affect. Staff have been additionally barred from speculative monetary transactions, together with short-term buying and selling in shares.
“We had a compliance system which adhered to the authorized necessities however that’s not acceptable and was subsequently rightfully modified,” BaFin president Felix Hufeld stated.
The regulator stated it has suspended the worker, who was not named, and launched disciplinary proceedings. What’s the Wirecard scandal? Munich-based Wirecard began out processing funds for pornography and playing, earlier than rising to grow to be a monetary know-how (or “fintech”) star and market darling.
Preliminary investigations discovered that the Wirecard might have been padding its books as early as 2015. Wirecard’s sudden fall from grace has not solely gotten the corporate in bother – however has broken the credibility of BaFin, which didn’t detect the fraud, and known as into query the actions of German Chancellor Angela Merkel’s authorities.