Monday, 28 December 2020
Sunday, 27 December 2020
Thursday, 17 December 2020
Wirecard A Series of Unfortunate Regulatory Incidents
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| "Who are the police? We need a police to catch the police?" |
No sooner had I posted about regulatory lapses by Apas in re Wirecard than the weekend edition of the FT landed at my doorstep.
Was für eine Überraschung! (Quelle surprise!)
Olaf Storbeck had another article on German parliamentary hearings on Wirecard.
This time the head of Apas, Mr. Ralf Bose, gave testimony.
Herr Bose admitted that he purchased an undisclosed number of Wirecard shares in April and sold them at an undisclosed loss in May – while Ba-Fin and Apas were in confidential talks about Wirecard.
Bundesminister für Wirtschaft und Energie Peter Altmaier, reportedly found Herr Bose’s comments “disconcerting” (beunruhigend?)
Ba-Fin fresh from its success supervising Wirecard will investigate Herr Bose’s share trading.
In that regard, I would hasten to note that Herr Bose was “long” not “short” Wirecard shares so the investigation may be able to be concluded quickly.
First time an oversight. Second time a mistake. Third time an unfortunate coincidence?
You may recall a post from some years back in which I ridiculed the idea of the imagined superiority of supervision in the “developed” West when discussing l’affaire Abraaj.
I’d offer the WC saga as re-enforcement of that argument.
Wednesday, 16 December 2020
"Timely" Words to Live By - Lloyd Green The Guardian
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| Recent Photograph of Professor Rovelli |
I suppose in some quarters it would considered the equivalent of ordering Kansas-style fish and chips, but there I was reading the 15 December US Edition of The Guardian.
Lloyd Green’s musings on the potential impact of AG Barr’s resignation on the Incumbent US President’s exercise of his power to pardon ended with what appears to be a four word koan: “What comes next remains.”
An allusion to Einstein’s theory of the illusion of time?
Or a subtle advancement of Carlo Rovelli’s more radical theory?
We may never know, if we don’t already.
Saturday, 12 December 2020
Wirecard - Great Moments in Regulatory Oversight
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| Wachsam sein --immerzu |
On 10 December Mr. Naif
Kanwan, executive
director for enforcement and market monitoring at Apas, the Federal
Republic’s audit “watchdog”, gave testimony at German
parliamentary hearings on Wirecard.
Olaf Storbeck has an absolutely delightful (though ultimately disturbing) account on that testimony which appears in the print edition of Friday’s FT (where else?)
Let’s run through the quotes. AA’s commentary in italics.
“My impression was: somebody is on the case, has been looking at the allegations and came to certain conclusions.” He added that this “subconsciously influenced my thoughts about the matter”.
One reading of this quote is that it is an admission that the apparently aptly named naif was not on the case. And saw little reason to disturb himself. George will do it.
Perhaps as well, that Mr. Naif’s investigations are conducted based primarily on the operation of the subconscious. If you will, a Freudian approach to regulation. Hence the picture above. The subconscious, as I hope you know, is more active during sleep.
Alternatively, it could just be an attempt to create an excuse. Feigned faulty memories or low intelligence are often proffered to “explain” failures.
Asked if he believed in early 2019 that FT journalists colluded with short sellers, Mr Kanwan pointed to BaFin’s ban and criminal complaint. “These moves were in line with such a picture,” he said.
Indeed, it is certainly well known-at least in certain circles-that short sellers are a nefarious bunch always up to no good bad mouthing fine companies. And that short sellers have never ever pointed out fraud before regulators woke up.
Equally that there really haven’t been any cases of external auditors missing or colluding in accounting irregularities.
It’s also well known that major financial newspapers don’t take action against columnists that collude with short sellers, particularly when a major regulatory agency lodges a criminal complaint.
Shame on you, FT!
Especially since this also happened with NMC – though to be fair in that case no criminal charges were lodged.
He acknowledged the watchdog at the time was unaware of earlier allegations against Wire-card raised by short sellers in 2016 in the so-called Zatarra report. That only changed in October 2019 after the FT published internal Wirecard documents pointing to a concerted effort to fraudulently inflate sales and profits.
One (at least AA) expects a watchdog to “wachsam sein immerzu” to quote the old song from the East. Though AA admits that he may be ignoring the possibility of “repressed memories”.
As a positive comment, I’ve heard--and not just from short sellers or financial journalists--of a communications service called the “internet” which I am assured allows one to follow news, conduct searches, etc.
They say it’s quite useful.
I am even also told that one can set up “alerts” to be advised of news on a particular topic, company, etc. without having to take an active steps –other than setting up the alerts.
Remarkable if true.
On that latter point, he did note:
“As a lesson learned, we have improved our press monitoring.”
лучше поздно, чем никогда!
Tuesday, 8 December 2020
Sunday, 6 December 2020
Father's Day Thailand - Commemoration of King Rama IX
Over seventy years of service to country and citizens.
Picture and text courtesy of AA's elder and wiser brother, expert in many things Asian.
Aus der Stadt Bochum, NRW, BRD - Welthauptstadt der Flitterwochen (1974) -- ZDF Starparade 5. Dezember 1974
Und vielleicht der Geburtsort von James Bond!
Es war ihr Liebeslied - besonders das unserer Mutter
Hey Boomer, a song for you! He really is a Boomer (in both senses), you know.
Neil Diamond
und noch mehr Peter Kraus, Les Humphries Singers, Marion
Hochkulturtanzen!!!!
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