In today’s top news, Germany’s deputy finance minister wants to restructure accounting firm regulations, and consumers are turning away from travel rewards cards. Plus, the Federal Deposit Insurance Corp. (FDIC) is looking to modernize bank reporting.
As the fallout from Wirecard’s troubles unfold, Germany’s deputy finance minister has called for radical solutions to fix how accounting firms are regulated. The government is expected to end its contract with the Financial Reporting Enforcement Panel (FREP), the country’s accounting watchdog, as early as Monday.
After spending years fine-tuning travel reward cards, banks have found that the pandemic decimated all the effort by reducing the need or will to travel. Now, with the pandemic necessitating staying at home and out of crowded tourist spaces, customers are wondering if the payments are worth it at all.
The Federal Deposit Insurance Corp. (FDIC) is considering nixing its quarterly reports of banks in an attempt to modernize the way data is handled, replacing the reports with a more timely, accurate approach to better reflect new technology available and better report on credit exposures and deposit information.
Companies owned by private equity firms are not seeing the money for protection that those firms ostensibly have saved up and many are tumbling into bankruptcy. But many of the firms have a good amount of funds reserved for new investments, while companies bought even over three or four years ago seem to be left in the cold.
Nearly every two weeks over the last 12 weeks, PYMNTS has surveyed more than 14,000 consumers to understand the impact of the global pandemic on how they work, shop, buy food, travel and spend their leisure time. Here’s the story of how the global pandemic created a digital-first customer in 12 weeks and why that matters for thinking about what’s next.
The pandemic has accelerated consumer preferences for contactless payments, leaving merchants scrambling to process higher volumes while remaining compliant with rules for strong customer authentication (SCA). In the latest Merchants Guide To Navigating Global Payment Regulations, Maha El Dimachki, head of payments for the U.K. Financial Conduct Authority, discusses how new open banking strategies are being drafted to help merchants adapt to these changing payment realities.
Two decades separate the 2001 collapse of Enron and the recent insolvency of Wirecard, but both firms’ stories (and flameouts) have similar trajectories. The warning signs were also similar before each company’s insolvency — perhaps pointing to guideposts that market watchers should look for before the next corporate accounting debacle hits.