WCAGY - Wirecard AG

Other OTC - Other OTC Delayed Price. Currency in USD
1.1000
-0.0265 (-2.35%)
As of 11:43AM EDT. Market open.
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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close1.1265
Open1.1300
Bid0.0000 x 0
Ask0.0000 x 0
Day's Range1.0620 - 1.1300
52 Week Range0.6100 - 87.7500
Volume27,990
Avg. Volume497,182
Market Cap277.095M
Beta (5Y Monthly)0.17
PE Ratio (TTM)0.68
EPS (TTM)1.6075
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateJun 19, 2019
1y Target EstN/A
  • German regulator examines auditor EY over Wirecard accounts
    Reuters

    German regulator examines auditor EY over Wirecard accounts

    The German body in charge of regulating auditors is examining the work of EY, the auditor that approved the books of collapsed payment services firm Wirecard <WDIG.DE>, the German Economy Ministry said on Monday. The ministry said Auditors' Regulator (Apas) had upgraded a preliminary investigation that had been running since October 2019, when the Financial Times first reported allegations of fraud at Wirecard, into a full formal regulatory inquiry. Handelsblatt newspaper, which first reported that the inquiry was underway, said the regulator was examining all audits that EY had conducted of Wirecard's accounts since 2015.

  • Reuters

    German regulator to examine auditor EY over Wirecard accounts - Handelsblatt

    The German body in charge of regulating auditors is examining EY in connection with their involvement with collapsed payment services firm Wirecard , Handelsblatt newspaper reported on Monday, citing a confidential Economy Ministry document. The document said that the Auditors' Regulator (Apas) was examining all audits that EY had conducted of Wirecard's accounts since 2015. "A formal professional oversight examination is underway into the Ernst & Young Audit Company," the document said, adding that the review would examine "adherence to legal and professional stadards."

  • ACCESSWIRE

    SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Wirecard AG - WCAGY- WRCDF

    NEW YORK, NY / ACCESSWIRE / August 1, 2020 / Pomerantz LLP is investigating claims on behalf of investors of Wirecard AG ("Wirecard" or the "Company") (OTC PINK: WCAGY)(OTC PINK:WRCDF).

  • WCAGY, WRCDF EQUITY ALERT: ROSEN, A RANKED AND LEADING FIRM, Encourages Wirecard AG Investors to Contact Firm Before Important Deadline in Class Action First Filed by the Firm Seeking Recovery of Investor Losses - WCAGY, WRCDF
    PR Newswire

    WCAGY, WRCDF EQUITY ALERT: ROSEN, A RANKED AND LEADING FIRM, Encourages Wirecard AG Investors to Contact Firm Before Important Deadline in Class Action First Filed by the Firm Seeking Recovery of Investor Losses - WCAGY, WRCDF

    Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Wirecard AG (OTC: WCAGY, WRCDF) between August 17, 2015 and June 24, 2020, inclusive (the "Class Period"), of the important September 8, 2020 lead plaintiff deadline in the securities class action commenced by the firm. The lawsuit seeks to recover damages for Wirecard investors under the federal securities laws.

  • Bloomberg

    Odey Charged With Indecent Assault, Prosecutors Say

    (Bloomberg) -- Crispin Odey, one of Europe’s highest-profile hedge fund managers, has been charged with indecent assault, U.K. prosecutors said.Odey was charged with one count under the Sexual Offences Act, and is set to appear at Westminster Magistrates Court in September, the Crown Prosecution Service said Friday. The charge relates to an alleged incident in the summer of 1998, the CPS said.“The allegation is denied and I will strongly contest this matter,” Odey said in an emailed statement.Odey, a backer of Brexit and U.K. Prime Minister Boris Johnson, is known for his eye-catching comments and bearish market outlook. The 61-year-old was one of a small number of bearish investors to profit from the market crash earlier this year, after comparing the current pandemic to the Great Depression of the 1930s.But by the end of the first half Odey’s flagship hedge fund, which manages $624 million, had slumped to a 17.9% loss. The fund’s losses come despite Odey Asset Management reportedly making at least 25 million euros ($29.4 million) betting against shares in scandal-hit German payment company Wirecard AG.The performance follows years of losses as Odey maintained bearish bets during an historic bull run.(An earlier version of this story was corrected to fix the date prosecutors gave for the date of the alleged incident.)(Updates with Odey comment in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • ACCESSWIRE

    The Gross Law Firm Announces Class Actions on Behalf of Shareholders of USO, CODX and WRCDF

    NEW YORK, NY / ACCESSWIRE / July 31, 2020 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies.

  • ACCESSWIRE

    LAWSUITS FILED AGAINST FSCT, WRCDF and VEL - JAKUBOWITZ LAW PURSUES SHAREHOLDERS CLAIMS

    NEW YORK, NY / ACCESSWIRE / July 31, 2020 / Jakubowitz Law announces that securities fraud class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies who purchased shares within the class periods listed below.

  • ACCESSWIRE

    The Gross Law Firm Announces Class Actions on Behalf of Shareholders of FSCT, KL and WRCDF

    NEW YORK, NY / ACCESSWIRE / July 30, 2020 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies.

  • GlobeNewswire

    DEADLINE ALERT for GEO, WCAGY, JCOM, VRCA: Law Offices of Howard G. Smith Reminds Investors of Class Actions on Behalf of Shareholders

    BENSALEM, Pa., July 30, 2020 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies.  Investors have until the deadlines listed below to file a lead plaintiff motion.  Investors suffering losses on their investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in these class actions at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.The Geo Group, Inc. (NYSE: GEO) Class Period: February 27, 2020 - June 16, 2020 Lead Plaintiff Deadline: September 8, 2020The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that GEO Group maintained woefully ineffective COVID-19 response procedures; (2) that those inadequate procedures subjected residents of the Company’s halfway houses to significant health risks; (3) that accordingly, the Company was vulnerable to significant financial and/or reputational harm; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.Wirecard AG (OTC: WCAGY, WRCDF) Class Period: August 17, 2015 - June 24, 2020 Lead Plaintiff Deadline: September 8, 2020The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Wirecard overstated its cash balances during the Class Period, falsely claiming €1.9 billion of cash in a trust account that was missing; (2) that Wirecard overstated its financial results during the Class Period, including revenue and EBITDA; (3) that Wirecard did not have adequate risk management or countermeasures; (4) that EY failed to audit Wirecard in accordance with applicable auditing principles; and (5) as a result, Defendants’ statements about Wirecard’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.J2 Global, Inc. (NASDAQ: JCOM) Class Period:  October 5, 2015 - June 29, 2020 Lead Plaintiff Deadline: September 8, 2020The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that J2 Global engaged in undisclosed related party transactions; (2) that J2 Global used misleading accounting to hide requisite impairments and underperformance in acquisitions; (3) that several so-called independent members of the Company’ board of directors and audit committee were not disinterested; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.Verrica Pharmaceuticals Inc. (NASDAQ: VRCA) Class Period: September 16, 2019 - June 29, 2020 Lead Plaintiff Deadline: September 14, 2020The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s proprietary applicator used for VP-102 posed certain safety risks if the instructions were not properly followed; (2) that, as a result, Verrica would incorporate certain user features to mitigate the safety risk; (3) that the addition of the user feature would require additional testing for stability supportive data; (4) that, as a result of the foregoing, regulatory approval for VP-102 was reasonably likely to be delayed; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.Contacts Law Offices of Howard G. Smith Howard G. Smith, Esquire 215-638-4847 888-638-4847 howardsmith@howardsmithlaw.com www.howardsmithlaw.com

  • ACCESSWIRE

    The Gross Law Firm Announces Class Actions on Behalf of Shareholders of KL, WRCDF and GWRE

    NEW YORK, NY / ACCESSWIRE / July 30, 2020 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies.

  • Merkel’s Office Faces Scrutiny in Hunt for Wirecard Answers
    Bloomberg

    Merkel’s Office Faces Scrutiny in Hunt for Wirecard Answers

    (Bloomberg) -- German lawmakers plan to grill officials from Angela Merkel’s office over Wirecard AG, as the political fallout from the scandal threatens to ensnare the chancellor and some of her closest allies.After a special hearing in Berlin Wednesday that lasted eight hours, members of the lower house of parliament’s finance committee said they will need answers from the chancellery before deciding on a deeper investigation. Finance Minister Olaf Scholz, the main target of criticism, defended his handling of the case and called for tighter financial oversight.“We will not get a complete clarification because the chancellery’s chair is empty today,” said Fabio De Masi, a member of the committee from the Left party. Lisa Paus from the Greens said that the committee intends to invite Merkel’s economic adviser, Lars-Hendrik Roeller, and possibly others, to testify, and noted that the chancellery continued to promote Wirecard “even when the allegations were already known.”“We want a complete explanation,” Paus said Thursday in an interview with broadcaster ZDF.Scholz, who testified at the hearing together with Economy Minister Peter Altmaier, is under fire over the government’s failure to pursue warnings about the payment company’s accounting practices. While the spotlight of a more rigorous parliamentary investigation may only be delayed, it’s not a given in Germany’s complicated political landscape.Just the BeginningFlorian Toncar, a member of the Free Democrats, said he planned to propose the creation of an investigative committee to the Left party and the Greens -- together they would have enough votes. But the far-right Alternative for Germany also supports the effort, which could create the appearance of an alliance that might put off many voters.“The chances that such a committee is coming have risen a lot since yesterday,” Danyal Bayaz, a lawmaker with the Greens, said in an interview with Bloomberg TV, adding that the backing of the AfD isn’t a concern. “We’re at the beginning and not the end of this inquiry.”If a probe is called, it could last well into 2021 and overshadow the early stages of next year’s election campaign.The Wirecard debacle threatens to undermine Scholz’s bid to lead the Social Democrats in a run at the chancellery. He has the most government experience of any contender, including hopefuls from Merkel’s Christian Democrats.Reforms and RepairsAfter the closed-door hearing, Scholz said Germany needed to strengthen its financial enforcement and called for the creation of a European equivalent of the U.S. Securities and Exchange Commission.“We need reforms,” he said. “There must be consequences in terms of legislation and repairs.”He also spoke in favor of a faster rotation of auditors compared with the current 10 years. He suggested four years to lawmakers, according to a person familiar with the discussions. That responsibility lies with Economy Minister Altmaier, who’s a member of the CDU.“Every minister is reviewing the procedures under his responsibility,” Altmaier told reporters, adding that rotating auditors need to be seriously considered. “Scholz needs to hold discussions very quickly about strengthening” Germany’s financial watchdog, BaFin.Scholz oversees the regulator and had to explain why his officials didn’t detect irregularities. He has come under additional pressure because his deputy Joerg Kukies, who regularly briefed his boss about developments of Wirecard probes, had at least two meetings with Markus Braun, the former Wirecard chief executive officer who has been arrested.Frank Schaeffler, a lawmaker from the Free Democrats, called on Kukies to step down, according to an interview in Bild newspaper.Merkel’s InvolvementMounting pressure prompted Merkel’s office to take the unusual step of unveiling a time line of interactions with Wirecard. It showed the chancellery maintained regular contacts with the company.Merkel promoted Wirecard’s efforts to gain a Chinese license during a state visit in September 2019. Her office was informed of inquiries into allegations of market manipulation just prior to the trip but denied that she was aware of the possibility of “severe irregularities” at the time.Wirecard, a member of Germany’s benchmark DAX index, became a national disgrace after acknowledging that about quarter of its balance sheet probably doesn’t exist. Before and after Wednesday’s gathering in the glass-domed Reichstag in Berlin, Scholz went on the offensive, appearing on national television to promote his proposals for strengthening Germany’s financial oversight. “We have done what was legally prescribed,” Scholz told ARD late Wednesday in his third TV interview of the day, bluntly rejecting the suggestion that his officials were blinded by the prospect of a German fintech company being successful on the international stage.(Updates with comments from lawmaker in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    PRESS DIGEST-Financial Times - July 30

    - UK car manufacturing fell by 42% to 381,000 vehicles in the first half of the year to the lowest level since 1954, caused by an industry-wide shutdown during March and April due to coronavirus pandemic and weak customer demand since then, according to figures from the Society of Motor Manufacturers and Traders released on Thursday. - Germany's finance minister Olaf Scholz defended his handling of the Wirecard scandal in closed-door hearings in the Bundestag on Wednesday, as members called for full inquiry despite his insistence that authorities had done all in their power to uncover irregularities at the disgraced payments company. - Britain's Financial Conduct Authority has ordered firms to do more to protect vulnerable customers and published draft guidance setting out how firms should treat customers facing financial, health or other difficulties that make it harder for them to keep up with repayments.

  • ACCESSWIRE

    CLASS ACTION UPDATE for PPC, WRCDF and WINS: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders

    NEW YORK, NY / ACCESSWIRE / July 29, 2020 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies.

  • Lead Plaintiff Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Wirecard AG To Contact The Firm
    Newsfile

    Lead Plaintiff Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Wirecard AG To Contact The Firm

    New York, New York--(Newsfile Corp. - July 29, 2020) -  Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Wirecard AG ("Wirecard" or the "Company") (OTC Pink: WCAGY) (OTC Pink: WRCDF) of the September 8, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.If you invested in Wirecard American Depository Receipts ("ADRs") between August 15, 2015 and ...

  • German lawmakers grill Scholz, Altmaier over Wirecard scandal
    Reuters

    German lawmakers grill Scholz, Altmaier over Wirecard scandal

    German lawmakers on Wednesday questioned Finance Minister Olaf Scholz and Economy Minister Peter Altmaier over their failure to detect and prevent the Wirecard [WDIG.DE] accounting scandal, one of the biggest in post-war history. Payment services company Wirecard filed for insolvency last month after admitting that 1.9 billion euros ($2.2 billion) supposedly held in trustee accounts by overseas partners probably did not exist. Prosecutors have arrested former Wirecard Chief Executive Markus Braun and two other former executives on suspicion of orchestrating a years-long criminal racket to inflate revenue and balances to hide losses dating back at least to 2015.

  • German lawmakers grill Scholz over Wirecard scandal
    Reuters

    German lawmakers grill Scholz over Wirecard scandal

    German lawmakers on Wednesday questioned Finance Minister Olaf Scholz over his failure to detect and prevent the Wirecard accounting scandal, one of the biggest in post-war history. Payment services company Wirecard filed for insolvency last month after admitting that 1.9 billion euros ($2.2 billion) supposedly held in trustee accounts by overseas partners probably did not exist. Prosecutors have arrested former Wirecard Chief Executive Markus Braun and two other former executives on suspicion of orchestrating a years-long criminal racket to inflate revenue and balances to hide losses dating back at least to 2015.

  • Bloomberg

    Credit Suisse Boss Rewrites the Bank's Master Plan

    (Bloomberg Opinion) -- Thomas Gottstein indicated that he didn’t plan to change much when he was promoted to the top job at Credit Suisse Group AG earlier this year. It’s a company he knows well, having worked there for two decades. But a reappraisal of the Swiss lender’s complexity and its appetite for risk appears to have changed his mind. That’s no bad thing.According to Bloomberg News, Gottstein wants to combine the lender’s risk and compliance units, and to reunite the global markets and investment banking divisions that his predecessor split. The overhaul may be announced on Thursday. Credit Suisse is also weighing whether to streamline its international wealth-management business, undoing a structure put in place just two years ago. So much for not messing with things.With the pandemic upending entire industries, the world of banking has changed since Gottstein took over as chief executive officer in February. Losses from bad loans, an accelerated shift to digital banking and a squeeze on margins from rock-bottom interest rates will force financial firms to focus ruthlessly on where they’re strongest, and to hunt for new ways to cut costs.The new boss’s shift in direction reflects the new reality, but it’s also a judgment on Credit Suisse’s trajectory under his predecessor, Tidjane Thiam, who was ousted after a corporate spying scandal.Credit Suisse wouldn’t be the first bank to split and then recombine its investment banking and trading units again. Deutsche Bank AG did the same in 2017. Bringing the trading operations and advisory activities back under one roof will make it easier to cut expenses and simplify businesses. The current structure adds unnecessary layers of management, creates competition for clients between bankers in different departments and gets in the way of the swift execution of deals.At present, the bank runs an international capital markets division, a global markets unit and has trading and advisory activities that report into its other operating units. That has made measuring performance difficult from the outside.Gottstein’s plan to tighten controls by combining the risk and compliance departments is perhaps even more revealing of his concerns about the bank. Yes, it’s an opportunity to reduce duplication, but the bank has also been wagering on risky deals that could damage its reputation and business.Two clients — Luckin Coffee Inc. and Wirecard AG — have been embroiled in scandals. A margin loan to Luckin’s founder prompted an internal review of how the bank lends to billionaire clients — an important part of its expansion under Thiam — including loans backed by illiquid assets. Credit Suisse has also been looking at its supply-chain finance funds (used by companies to pay their suppliers) amid accusations of conflicts of interest over its links to a key investor in the funds, Masayoshi Son’s SoftBank Group Corp.Under Thiam, Credit Suisse cut costs and reduced its exposure to volatile trading revenue. But there were concerns about whether its private banking business would be of the requisite quality to strengthen the franchise. Gottstein’s early moves suggest there’s room for improvement. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • ACCESSWIRE

    SHAREHOLDER ALERT: CEMI GEO WRCDF: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines

    NEW YORK, NY / ACCESSWIRE / July 28, 2020 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies.

  • ACCESSWIRE

    SHAREHOLDER ALERT: CEMI BKD WRCDF: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines

    NEW YORK, NY / ACCESSWIRE / July 28, 2020 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies.

  • ROSEN, A TOP RANKED LAW FIRM, Reminds Wirecard AG Investors of Important September 8 Deadline in First Filed Securities Class Action Commenced by the Firm; Encourages Investors with Losses in Excess of $100K to Contact Firm – WCAGY, WRCDF
    Business Wire

    ROSEN, A TOP RANKED LAW FIRM, Reminds Wirecard AG Investors of Important September 8 Deadline in First Filed Securities Class Action Commenced by the Firm; Encourages Investors with Losses in Excess of $100K to Contact Firm – WCAGY, WRCDF

    Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Wirecard AG (OTC: WCAGY, WRCDF) between August 17, 2015 and June 24, 2020, inclusive (the "Class Period"), of the important September 8, 2020 lead plaintiff deadline in the securities class action commenced by the firm. The lawsuit seeks to recover damages for Wirecard investors under the federal securities laws.

  • Bloomberg

    Bankers’ New Fix May Cause Harmful Addiction

    (Bloomberg Opinion) -- European regulators and policy makers have moved quickly during the pandemic to loosen banks’ capital rules to keep the lending taps open. The latest wheeze is to make it easier for lenders to buy insurance against the risk of their borrowers defaulting. The danger with this fix is that the industry gets hooked on an unproven piece of financial engineering that adds even more complexity to the banking system.It isn’t surprising that the European Commission, which is pushing for the change, is eager to help the lenders. Unlike in the U.S., the continent’s companies rely on bank lending for most of their borrowing. What’s more, the European Central Bank delivered grim news on Tuesday: Some banks might not have enough capital to meet minimum requirements by 2022 in the event of a severe economic downturn.Traditionally, banks have securitized their loans by packaging them together themselves and selling the exposure to other parties. But the Commission is proposing that they should be allowed to do “synthetic securitizations” too, where lenders buy a guarantee against potential loan losses — typically in the form of a derivative — from a hedge fund or insurer. The difference with this approach is that the assets being insured remain on the banks’ balance sheets, meaning they could now free up capital.These so-called “capital-relief trades” were seen as toxic in the aftermath of the financial crisis, when they were used for nefarious purposes, and Europe has taken years to find ways to make them less open to abuse.Regulators have found ways to reduce some of the risk: Under the Commission’s proposal, those providing the credit protection will probably have to post collateral against the transactions, shielding the bank from the danger of a counterparty not meeting its promise to cover losses. But not everyone will be reassured. As I’ve argued before, moving risk outside the regulated banking industry could do more harm than good without adequate protective measures.And this could be a big market, even with the collateral requirement. Yield-starved investors have been knocking on banks’ doors, eager to offer guarantees on anything from U.S. corporate loans to pools of loans to small and medium-sized companies.Hard numbers are hard to come by because most deals tend to be bilateral transactions with little disclosure, but data compiled by the European Banking Authority show synthetic deals are already more popular than traditional securitizations. They had a total value of about 126 billion euros ($148 billion) as of last year. These deals tend to be most popular among the larger banks and attract a narrow group of buyers, according to the EBA. Deutsche Bank AG reportedly cut its risk to the now bankrupt Wirecard AG with one such transaction.Regulators also hope that letting banks treat synthetics like actual securitizations will bring more transparency to the market and make it clearer where risk has shifted.Nevertheless, bank leaders shouldn’t over-rely on the appetite for risk from investors that could just as easily vanish. A rise in company defaults — an inevitability when governments eventually halt their pandemic spending — could dampen demand. Best for Europe’s lenders to focus on how they can help themselves.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.