German Prosecutor Probing FT Journalist Over Wirecard

Wirecard lands dubious credit from German watchdog

Wirecard lands dubious credit from German watchdog

German authorities have opened an investigation into a Financial Times journalist over reports about German payments firm Wirecard, Frankfurter Allgemeine Zeitung said.

German and European financial market regulators banned short-selling shares of German payment services company Wirecard on Monday following weeks of turbulence in its share price.

The European financial watchdog ESMA agreed with the emergency short-selling ban and said it was necessary to address a "serious threat" to market confidence in Germany.

Data from IHS Markit show that at the end of last week, 12.8 percent of Wirecard shares were out on loan, which IHS Markit said was a proxy for short positions. The probe was triggered by a criminal complaint submitted by an unnamed individual, prosecutors said.

Investors reacted positively to the German financial authority's decision. The FT denied sharing plans about its reporting and said any claims that its staff are involved in market manipulation in relation to Wirecard are "baseless and false", a spokeswoman said in a statement. Short interest is now at about 14 percent, the highest level since mid-2017, according to data from IHS Markit.

Not everyone is convinced by BaFin's rationale for the short-selling ban.

IPL 2019 schedule is here
Winners of IPL 2018, Chennai Super Kings (CSK) will take on Royal Challengers Bangalore (RCB) in the first match in Chennai. However, the schedule announced for 17 matches is subject to the announcement of the Lok Sabha 2019 election dates.

"In the current situation, there is a risk that this uncertainty will increase and escalate into general market uncertainty", it said. Short sellers started targeting the stock in earnest after a newspaper report of fraud at the company.

About 15.9 million Wirecard shares were out on loan - a proxy for short interest - as of February 14, representing about 14 percent of the company's free float, according to data compiled by IHS Markit Ltd.

Short-sellers borrow shares, sell them on the market and later buy them back. The company has been targeted in the past as well by bears, leading to prosecutions of short sellers.

Wirecard got its start two decades ago processing payments for gambling and pornography websites.

-With assistance from Steven Arons, Katharina Rosskopf, Jan-Patrick Barnert, Stefan Nicola, Ksenia Galouchko, Sree Vidya Bhaktavatsalam and Justina Lee.

Recommended News

  • Honda employee of 24 years sums up Brexit in four eloquent words

    Honda employee of 24 years sums up Brexit in four eloquent words

    The EU-Japan trade deal would ensure that", said Anthony Glees, a professor of politics at the University of Buckingham. Honda produced more than 160,000 cars in Swindon a year ago - around 845 of which were exported to the US.
    TCL’s First Foldable Phone Can Bend Into A Smartwatch

    TCL’s First Foldable Phone Can Bend Into A Smartwatch

    In the past few months, we've witnessed almost as many different foldable smartphone concepts as there are phone manufacturers. These images are preliminary renderings and are subject to change, so no word on specs, pricing, or timing.
    Pipeline protest convoy approaches Ottawa after rolling across country

    Pipeline protest convoy approaches Ottawa after rolling across country

    Organizer Jason Corbeil said demonstrations would be held on the lawn of Parliament between 11 a.m. and 4 p.m. The rally is expected to occupy nearly a kilometre of Wellington Street, in front of Parliament.
  • Amazon aims to cut its carbon footprint

    The vast demand for electricity to power the infrastructure that runs the tech giants is under increasing scrutiny. Facebook's reading is 34 percent and Microsoft's is 34 percent, the report said.
    Arizona man rescued from quicksand in Zion National Park

    Arizona man rescued from quicksand in Zion National Park

    When crews located the man, they said he was suffering from hypothermia, exposure and other injuries, the press release said. A helicopter from Salt Lake City launched during a break in weather on Sunday afternoon to bring the man to safety.
    Special Announcement Set For This Week's WWE NXT

    Special Announcement Set For This Week's WWE NXT

    The Baddest Woman on the Planet displayed her toughness when she kicked out of two Riott Kicks. Lastly, Aleister Black would disrupt Elias' strum-and-spiel with his full NXT entrance.
  • European Union  in spat with Hungary over anti-Juncker campaign

    European Union in spat with Hungary over anti-Juncker campaign

    Under the initiative, Hungarian mothers with four or more children will be exempt from paying income tax. Orban and me.so I am of the opinion that his place is not in the European People's Party".
    Sirul to be deported from Australia after Court rejects his asylum bid

    Sirul to be deported from Australia after Court rejects his asylum bid

    In 2009, Sirul and accomplice Azilah Hadri were convicted of murdering Altantuya and were sentenced to death. It found no suggestion "that a state-ordered assassination would amount to a political crime", ABC said.
    Brexit: May heads back to Brussels but European Union  not budging

    Brexit: May heads back to Brussels but European Union not budging

    Barroso said Tuesday that the bloc would likely accept a request to the extension to sort out the details of departure. Eurosceptic lawmakers said Malthouse was "alive and kicking" after meeting May on Tuesday.
  • Judge orders trial in Colorado woman's death

    Judge orders trial in Colorado woman's death

    Blood in the bathroom identified as Berreth's was discovered December 6, days after police turned the property over to her family. As the civil case moves forward, the criminal cases involving Frazee and a woman from Idaho have taken some unexpected turns.
    Jeremy Corbyn tells exiled MPs they were elected on a Labour manifesto

    Jeremy Corbyn tells exiled MPs they were elected on a Labour manifesto

    The Labour leadership is bitterly divided over how to respond to the decision by a group of MPs to resign and set up a new Independent Group in the Commons.
    Huawei Sets Launch Date For the P30 in March

    Huawei Sets Launch Date For the P30 in March

    Huawei's soaring success is the result of the company's continued efforts to bring nothing but the best smartphones to consumers. Based on the leaks in the past, Huawei could unveil the P30 Pro alongside the Huawei P30 at the Paris event.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.