Bafin intensifies scrutiny of Wirecard transactions involving its staff members
BaFin Under Scrutiny: Re-evaluation of Employee Trades in Wirecard Amidst Market Manipulation Allegations
Germany's financial watchdog, BaFin, is currently re-evaluating the private trades of its employees in Wirecard shares from 2018 to 2020. This evaluation comes in response to a parliamentary inquiry by FDP Bundestag member Frank Schäffler.
According to a report by Handelsblatt, in the first half of 2020, BaFin employees concluded more Wirecard trades than in the entire previous year. A total of 56 employees reported 196 private transactions with Wirecard, compared to only 137 transactions from 41 employees in the entire previous year. This corresponds to an increase in private Wirecard transactions of around 40 percent.
The re-evaluation follows a criminal complaint filed by BaFin against Wirecard for suspected market manipulation at the beginning of June. Just a few days before the insolvency of the Wirecard group, BaFin stopped the group's free access to its accounts at the Wirecard Bank.
The increased private trading activities by BaFin employees have been met with criticism due to the authority's important decisions regarding Wirecard in recent years. For instance, BaFin banned short selling in Wirecard shares for two months in February 2019, a decision that is now under scrutiny.
However, BaFin has declined to provide further details on request from Handelsblatt, leaving the public and the parliament in the dark about the specifics of the evaluation and whether BaFin employees significantly increased their private trades in Wirecard shares from 2018 to 2020.
As the investigation continues, it is crucial to maintain transparency and accountability in the financial sector to ensure public trust. For those seeking more detailed and updated information on this issue, official BaFin reports or credible news investigations focused on BaFin's role and employee conduct during the Wirecard scandal are recommended.
Other industry players are questioning the integrity of BaFin's decisions in the finance business, given the significant increase in private Wirecard trades by its employees. The surge in transactions has raised concerns about potential conflicts of interest and market manipulation, following BaFin's critical decisions regarding Wirecard in previous years.
