How Wirecard Went From DAX Darling to Political Headache

Wirecard, once a promising tech company in Germany's DAX index, faced a rapid downfall due to financial misconduct. Initial optimism turned to scandal as reports of forged contracts and accounting irregularities emerged. Despite efforts to calm investors with an independent audit by KPMG, over $2 billion in assets were found missing. Legal actions ensued, leading to the arrest of CEO Marcus Brown. The scandal had significant political repercussions in Germany, prompting calls for stricter financial regulations and scrutiny of government oversight.

What was the initial reaction to Wirecard's entry into the DAX index?

• It led to immediate investigations.

• It was largely ignored.

• It gave hope to the finance industry.

• It was met with skepticism.

What action did the German financial regulator Bafin take in response to the issues at Wirecard?

• They banned all trading of Wirecard shares.

• They imposed a temporary ban on short selling.

• They increased Wirecard's credit rating.

• They provided financial assistance to Wirecard.

What was the outcome of the independent audit conducted by KPMG?

• It resulted in Wirecard's CEO being exonerated.

• It confirmed all of Wirecard's financial statements.

• It found over a billion dollars of revenue missing.

• It led to Wirecard's immediate bankruptcy.

What was the significant legal action taken against Wirecard's CEO Marcus Brown?

• He was arrested following the scandal.

• He was given a warning by the board.

• He was awarded for his leadership.

• He was promoted to a higher position.

What was the political impact of the Wirecard scandal in Germany?

• It was seen as a wake-up call for tougher regulation.

• It had no significant political impact.

• It resulted in the dissolution of the German parliament.

• It led to the resignation of the finance minister.