BaFIN Blames Employee for Wirecard Insider Trading

Germany’s Federal Financial Supervisory Authority (BaFIN) has filed a criminal complaint against an unnamed employee for involvement in insider trading in the now-collapsed Wirecard, the regulator announced on Thursday.

The employee, working at the securities supervision department of the regulator, sold structured products of the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term firm on June 17 last year, a day before the public revelation of the missing 1.9 billion euros from the company’s books.

BaFIN has already suspended the employee and opened disciplinary action against the person.

The German government earlier revealed that several BaFIN employees bought and sold Wirecard shares before its demise.

Doom of a Giant

The high-flying German Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term, Wirecard collapsed as its auditor could not find 1.9 billion euros in cash in the books. This was followed by the stepping down of the company’s long-running CEO, Marcus Braun and also his arrest.

The company entered into liquidation on June 25. Several international divisions of the company were already acquired.

Though the GermanFinance Minister initially applauded BaFIN for handling Wirecard's collapse, the regulator later faced harsh criticism for its role and the involvement of its employees in insider trading, making the situation worse.

“The finance ministry saw no need to take action on insider trading at the supervisory authorities at the outset of the Wirecard scandal,” German lawmaker, Fabio De Masi said. “There is still a need to apply stricter EU rules on insider trading to German authorities. We need rules for ministries and the Bundestag.”

Apart from the regulatory employee, many others are suspected to have been involved in insider trading with Wirecard shares. BaFIN earlier asked the prosecutors to open an investigation on possible insider trading, citing a post by an individual on an online forum eight days before the auditor’s report.