Germany’s Social Democrat Finance Minister Olaf Scholz is facing calls from rival parties to account for the regulatory failures that led to the collapse of Wirecard after it emerged he knew of concerns about the company 18 months ago. Scholz, seen as the party’s best hope to succeed conservative Chancellor Angela Merkel next year, was informed in February 2019 that investigators were looking in “all directions” when regulators banned short-selling of Wirecard’s shares, according to a parliamentary report seen by Reuters. While there is no suggestion that Scholz knew of any malpractice, rival parties have suggested the Social Democrats’ (SPD) most prominent politician bears responsibility for regulators’ failure to spot problems.
