Deutsche Bank CEO evaluating help for Wirecard Bank

FILE PHOTO: The logo of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions, is pictured at its headquarters in Aschheim, near Munich, Germany, July 1, 2020. REUTERS/Andreas Gebert/File Photo

FRANKFURT (Reuters) – Deutsche Bank’s chief executive said on Tuesday it was too early to say how it might help Wirecard Bank, the banking wing of collapsed payments firm Wirecard.

Germany’s largest bank said last week that it was working with financial watchdog BaFin and Wirecard’s administrator on possible support for Wirecard Bank.

While it was “too early to judge” how Deutsche Bank may be involved, CEO Christian Sewing said it was “almost an obligation” to look at Wirecard Bank for opportunities or to stabilise it given his company’s focus on transaction banking,

“We all now need transparency and that’s the first task,” Sewing told a webcast event organised by Bloomberg News.

Deutsche Bank said last week that it was ready in principle to support Wirecard Bank “in the context of a continuation of business operations” if assistance became necessary.

Wirecard filed for insolvency last month owing creditors 4 billion euros ($4.51 billion) after disclosing a 1.9 billion euro hole in its accounts that its auditor EY said was the result of a sophisticated global fraud.

Sewing said Deutsche Bank’s exposure was very limited.

Separately, European Union finance ministers are due to discuss stronger regulation of payment providers at meeting this week, a German government official said.

“Europe-wide rules are urgently required,” the official added. Germany’s regulation of Wirecard has come under intense scrutiny since the rapid demise of the former fintech star.

Reporting by Tom Sims and Hans Seidenstuecker; Additional reporting by Christian Kraemer in Berlin; Editing by Maria Sheahan, Michelle Martin and Alexander Smith

Source Article