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Deutsche Bank Cut Wirecard Ties as Its Fund Managers Went All In

  • As signs of irregularities mounted, bank cut back risk
  • But its fund managers still piled into the stock seeing value
Wirecard AG App as Payments Company Faces Expanded Investigation
Photographer: Alex Kraus/Bloomberg

In late 2018, as Deutsche Bank AG executives mulled the future of their troubled lender, Chairman Paul Achleitner encouraged them to emulate a payments firm that had become a wunderkind of German finance: Wirecard AG.

The two companies were already close. Deutsche Bank was a key lender to Wirecard and its chief executive officer, Markus Braun, who also sat on one of its regional advisory boards. Andreas Loetscher, an Ernst & Young partner who had overseen several audits of Wirecard’s results, had recently joined Deutsche Bank as chief accounting officer. DWS, the bank’s asset-management unit, was a shareholder.