Wirecard Scars Push Watchdog BaFin to Crack Down on Fintechs (1)

The regulator’s letter was scathing, a laundry list of failings ranging from insufficient controls to flawed risk management that culminated in the order to shrink the fintech’s deposits.

That heaped pressure on Solaris SE, the recipient of the September letter, to renegotiate a key acquisition. It’s also in talks to raise fresh money despite a difficult funding environment to ensure its financial strength keeps up with growth ambitions.

The Berlin-based firm isn’t alone: The hardball approach now appears to be the norm at BaFin, the watchdog better known for failing to prevent the Wirecard AG scandal. BaFin has been ...