Wirecard… and the cracks begin to show

On 27 June 2020, Wirecard filed for insolvency with its share price plummeting 90 per cent in a massive accounting scandal. After the ex-chief executive was arrested for alleged market manipulation and false accounting, this news came to the public. It has emerged that €1.9 billion went missing from the company’s balance sheet with Ernst & Young (EY) failing to sign-off on Wirecard’s accounts. This article will reflect on Wirecard’s mishaps, what this means for financial regulators, and the impact on the broader economy.