The German ban on short positions in the fintech company Wirecard has been lifted. By going ‘short’, investors speculate on a fall in prices. Market watchdog BaFin found that this happened too often after news about suspected WireCard fraud, which would undermine overall confidence in stock markets.
Large investors reacted with anger to the ban, which would limit them too much in their investment strategy. It even threatened with legal action against BaFin.
The Wirecard share lost considerable value this year, after the Financial Times business magazine had written about possible fraud and corruption at a Singapore office. The authorities in that country are still investigating the case. In the meantime, Wirecard has sued Financial Times for damage caused by “incorrect reporting”.
No Comments