The Banker | Mon, Oct 12, 2020
by William R. Rhodes
The lion's share of the blame for the $2.lbn fraud and collapse of Wirecard rests with its board, ex-CEO, chief financial officer and senior leaders. The supervisory and executive boards failed to oversee the firm's performance or ask the right critical questions. Why were they so lax?
German financial authorities, who have long touted the efficacy of their domestic board structures, need to take a long, hard look at lessons from the Wirecard debacle and change the expectations of how boards should function, deliberate and oversee senior executive performance. Unquestionably, banks also need to learn from this scandal.