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Fallen Wirecard-in-chief have to sell some of the pledged shares, and more business news

Table of contents

  • Ex-Wirecard-chief brown sold shares which he had deposited in 2017, as security for a loan
  • Ex-national Bank Chairman Philipp Hildebrand holds Corona-crisis is less serious than the 2008 financial crisis

After Wirecard had granted a multi-billion amount is untraceable, has lost the share of the company last week, 72% of its value. The previous boss Markus brown had to vacate his seat.

Frank hoermann/Sven Simon / www.imago-images.de

(Bloomberg/Reuters) Just exchanged Wirecard AG’s CEO Markus Braun, according to informed circles, and a large part of its share package in the deep in a balance-sheet scandal, the payment service provider reject the entangled shot. It is a question of shares which he had deposited in 2017, as security for a loan of 150 million euros.

After Wirecard had granted a multi-billion amount is untraceable, has lost the share of the company last week, 72% of its value. Thus, the sale of the collateral, the portion covered was well-informed circles, that seem to be necessary.

The 2002 CEO appointed brown stopped, according to Bloomberg data, as at 19. June, 7% of the Wirecard-shares was the largest shareholder of the company. How to listen to was, and helped in the financing of its participation in a originally with Deutsche Bank AG closed the margin loan of 150 million euros, the Bank meanwhile, cut shot. A duty of notification from the December 2017 reports to the Deposit of 4.2 million shares as collateral.

Brown declined to comment, as well as a spokesman for the German Bank.

The banks could turn off Wirecard now the money tap. Interim chief James Freis is fighting for Survival of the group: To stand with the aid of the on Friday hired investment Bank Houlihan Lokey continues to be in “constructive discussions” with the lending banks. In the financial centre of Frankfurt was at least heard at the weekend that the banks Wirecard want to continue to hold on to life. The Concerns in front of the shock waves are probably too big.

Of Wirecard AG management Board is not a message from the night of Monday, the Bank balances on escrow accounts in the amount of EUR 1.9 billion, “with probability”. The company was previously assumed that the existence of these accounts and had reported as an asset.

Wirecard handles cashless payments for retailers, both on the tills as well as online. The company is in distress, since the London “Financial Times” accused the Management in a series of articles in the balance sheet manipulations. The financial Supervisory authority, Bafin, and the Munich public Prosecutor’s office to investigate various aspects in the case of Wirecard.

(sda) The Ex-President of the Swiss national Bank (SNB), Philipp Hildebrand, the current economic crisis is not as serious as the recent financial crisis in 2008. He does not believe that companies will change their working practices.

For him, two conditions were necessary for the economy to start again. “The first is to prevent a second wave of the spread of the Coronavirus,” he said. As the second condition is to prevent the current crisis becoming a banking crisis, it was said. Thanks to the Lessons from the financial crisis and the new regulations, the financial sector was “now in a much better Position than in 2008,” he said also.

Globalisation will also continue. The current Vice-President of the American financial conglomerate Blackrock, a leading asset Manager, believes that the pandemic is going to change the way businesses large. “Globalization will be different. But they will not disappear,” he said.

Many companies have focused too much on efficiency and profit maximization, he said. “The cost of an overly efficient system are high in the case of an accident,” he commented. From “just-in-time” will pass in the future, probably to a System of “just in case”. Many conditions, such as data centers in India or the dependence on Chinese suppliers would in future be questioned.

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