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Wirecard’s collapse does not indict one company, but a whole system

It is remarkable how many red flags were missed for so long – this grim saga now leaves a great many people across the industry with serious questions to answer

Markus Braun, former chief executive officer of Wirecard
Markus Braun, former chief executive officer of Wirecard Photo: Getty Images

The Wirecard scandal is the most serious indictment of European finance since the global banking crisis. In terms of frauds, the collapse of the German payments business is one of the most damaging ever for the reputation of the European financial system.

It has revealed a pattern of negligence (or worse) among leading banks, auditors, rating agencies, investors and regulators that is simply breathtaking.

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