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Commerzbank Looks to Reclaim Wirecard Losses from EY

Commerzbank Looks to Reclaim Wirecard Losses from EY

(26 January 2023 – Europe) Commerzbank is suing EY for the recovery of €200 million in losses from the collapse of disgraced German payments firm Wirecard.

Wirecard was a rising blue chip star before its implosion following the discovery of a gaping €1.9 billion hole in its balance sheet.

Wirecard had a credit facility of €200 million with Commerzbank, of which about 90% was drawn at the time of its undoing. ING, ABN Amro Bank and Landesbank Baden-Wuerttemberg all had a similar exposures.

As a court case against Wireccard executives proceeds in Munich, fingers have been pointed at EY, the accounting firm which for ten years approved Wirecard's books, even as red flags about the company's financial position were being raised by journalists.

Speaking on the Commerzbank suit an EY spokesperson told Reuters: "Claims against EY for damages do not hold up. EY assumes that the courts will also uphold this position."

EY lost several big audit mandates in Germany, including Commerzbank, DWS and KfW, in the wake of the Wirecard scandal and is preparing to cut 40 partners and shed 380 staff in a bid to stem the damage.

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