Wirecard Implosion Tears Through European Banks’ Bottom Lines

Wirecard AG’s spectacular collapse is leaving a gaping hole in the income statements of its European banks, Bloomberg News reported. While only three of the biggest lenders to the German payments company have reported earnings so far, all wrote down virtually their entire exposure. Commerzbank AG and ING Groep NV each took a hit of about 175 million euros ($207 million), according to people familiar with the matter, more than half of their profit for the second quarter. Credit Agricole SA suffered a loss of about 110 million euros. Wirecard filed for insolvency in June after admitting that almost 2 billion euros in previously reported as cash didn’t exist. The scandal has continued to widen since then and now threatens to engulf top politicians, regulators and auditors. Read more