Saturday 6th April

The Spotlight

TELL US A LITTLE BIT ABOUT YOURSELF…

I am a first year economics student at Durham University and I studied Maths, Further Maths, and Physics at A Level. In the future, I am looking towards a career in the financial sector. Aside from academics, I have a background competing nationally in athletics and have been an international fire cadet. At university I am currently on two executive boards, I am the Uni Rep for Deloitte and Adobe, and I’m also training for a marathon!

HOW DO YOU BALANCE ALL OF THESE THINGS?

My biggest piece of advice is to prioritise the things you need to get done to accomplish your own goals and arrange your social life to fit around these things. For example, if you have an interview, don’t move it to a later date, just get it done and then you can move on. For applications, when you receive a test or Hirevue then try to find the time to complete it as soon as, so they aren’t building up.

YOU’VE BEEN ACCEPTED INTO SPRING WEEKS WITH FIRMS INCLUDING BANK OF AMERICA, DEUTSCHE BANK, AND HSBC. WHAT IS YOUR ADVICE FOR PEOPLE WHO WILL BE APPLYING TO THESE PROGRAMS OVER THE NEXT FEW YEARS?

Find the time to reach out to recruiters, whether that is via LinkedIn or through meeting people at networking events. Having a good CV is crucial to getting through to the interview and assessment stages so if you can find someone to look through your CV and give you advice on how you can improve it then that would be so beneficial.

In terms of networking, be selective with the events you go to because you can’t do everything. When you’re at events, try to build a rapport with people rather than just grilling them with career questions. Having a bonding point, whether that be a shared love of marathons or pointing out something someone is wearing, can make you much more memorable.

I have also found that having mentors who can guide you and offer advice is really important.

YOU ARE THE MARKETING OFFICER FOR THE DURHAM FINANCE SOCIETY  AND ARE ALSO DIRECTOR OF MARKETING AND COMMUNICATIONS IN THE MARKETING SOCIETY. WHAT MADE YOU INTERESTED IN MARKETING?

Being involved in marketing has allowed me to know how to come across to, and deal with, different clients as well as giving me the ability to market myself in certain ways and change my tone of voice depending on who I’m talking to. It also grows your network and allows you to meet and build connections with new people. The head of Schroders started off as a marketer!

YOU RUN AT A HIGHLY COMPETITIVE LEVEL. DO YOU FIND THAT RUNNING HELPS YOU TO DESTRESS?

Starting off my degree in economics, taking on commitments with lots of clubs and societies, and applying to Spring Weeks and internships made the start of this year quite stressful so being able to go for a run, and also working towards a marathon, was really helpful mental health wise. I do find that running keeps me grounded at times when things are really stressful.

WHO IS YOUR BIGGEST INSPIRATION?

The last time I was asked this, I said my mum and I think would have to stick with that. But outside of my family, Kate Middleton. I know this is a slightly rogue choice but I met her at an event while working for the royal family on my gap year and her confidence and how she puts herself across makes her someone I would aspire to be.

The Deep-dive

Bringing Down Wirecard

The Wirecard scandal unfolded with the drama of a blockbuster movie (in fact, there is a very good Netflix documentary about it which is very much worth a watch!). At its heart lay a German fintech company that soared to financial prominence, both in Germany and globally, before crashing spectacularly, leaving behind a trail of deceit, intrigue, and financial ruin. In this report, we take a look at the Wirecard saga in more detail, exploring an intricate web of deception, the regulatory blind spots it exposed, and the lingering mysteries surrounding its key players, particularly Jan Marsalek.

The Rise and Fall of Wirecard

Wirecard, founded in 1999 near Munich, initially processed payments for online adult entertainment and gambling websites. Under the leadership of CEO Markus Braun, Wirecard expanded rapidly, diversifying into banking services and acquiring smaller payment companies, particularly in Asia where competition from the likes of Amex and Visa was more limited. Its ascent culminated in its inclusion in Germany's DAX index, symbolising its status as a fintech darling. However, a series of investigative reports by the Financial Times in 2019 exposed accounting irregularities, leading to a dramatic collapse when it was revealed that 1.9 billion euros in cash likely didn't exist. Wirecard's share price plummeted, and it became the first DAX company to go bankrupt

The Anatomy of Deception

Wirecard's downfall exposed a sophisticated scheme of financial manipulation, orchestrated through a complex network of subsidiaries and partner companies. Prosecutors alleged that Wirecard inflated earnings by fabricating transactions with third-party acquirers (TPAs) in Dubai, the Philippines, and Singapore. These TPAs, purportedly responsible for a significant portion of Wirecard's revenue, were later revealed to be fictitious entities, with addresses leading to residential homes and unrelated businesses. The scandal underscored the dangers of relying on opaque financial structures and the importance of robust regulatory oversight.

Regulatory Oversight and Market Blind Spots

The Wirecard scandal laid bare significant failures in regulatory oversight, particularly by Germany's market regulator, BaFin. Despite red flags raised by journalists and short-sellers, BaFin failed to uncover the fraud, opting instead to target those who exposed it. The regulator's response, including a temporary ban on short-selling Wirecard shares and criminal complaints against journalists, further eroded trust in its ability to safeguard investors and maintain market integrity.

Jan Marsalek: The Case Continues

At the center of the Wirecard saga stands Jan Marsalek, the company's former COO, whose shadowy connections and alleged involvement in espionage have added another layer of intrigue to the scandal. Marsalek's ties to Russian intelligence agencies and his role as a key player in Wirecard's operations have raised questions about the extent of his influence and the motives behind his actions. As authorities continue to unravel the complexities of the case and pursue those responsible, the legacy of Wirecard will endure as a stark reminder of the perils of deception and the importance of upholding integrity in the pursuit of profit.

5 Daily Articles

1. Britain’s Shrinking Gender Pay Gap

2. A Tesla Robo-Taxi?

3. Finland’s First Year in NATO

4. Samsung Sees Booming Profits

5. Insider Trading at Tottenham

Opportunities

BCG Consulting Internship

John Locke Essay Competition

Essentials of Finance

Quiz!

What is the ‘market risk premium’?

Send your answers on the Girl Economics group on LinkedIn (you can join here is you haven’t already!) and the answer will be posted at 8pm this evening!