beethoven is from. brito for his 4th. beethoven 202250th anniversary year for him do you. think a big shriek shoulder starts only that way will your chief anything in life well that's the kind of advice you often hear in the world of business but beware sometimes entrepreneurial visions turn out to be casals in the sky or even a case of fraught bursting bubbles in the business world our topic today are made

welcome i'm starting with a major scandal that's rocked germany's financial world the bankruptcy of payment company wire caught what a story it could be straight out of a martin scorsese movie looking at the dock a side of humanity why a cod was a major tax listed company until an investigation by the financial times uncovered a fraudulent behavior in the end of the german fin tech company success story collapsed like a house of cards. a member of the investigations team of the financial times. was the 1st to raise the alert about what cards accounts this is a bit of a strange company in the numbers that it's putting out don't quite seem to add up why a card with a highly promising tax a listed fin tech company specialized in electronic payment services online purchases also involve fees to the transaction provided such as why a card it's a growing market that benefits from growing technical innovations so surely the

sumps should add up. the reporter's revelations cools the high flying way a card shares to tumble germany's financial regulator then a key state of market manipulation. when you suddenly find yourself facing a criminal investigation in june that was there were some moments where it was quite stressful but dan mccrum was proven right as prosecutors notched an investigation into why a card's action its former c.e.o. was arrested and taken into custody while his deputy has disappeared amid rumors of assistance from russian intelligence why a card looks to be one of germany's biggest fraud scandals this is by far the biggest story of my career. well the wild card collapse has sent a quaver across the financial world i'm struck fear into the hearts of financial regulators and what it is after all year after year auditor's had given y.

a cot a clean bill of health the industry's biggest players are accounting firms did lloyd's price waterhouse cooper ernst and young or even why nowadays and k p m g the wild card scandal is especially painful for you why it had been why a cons regular order to since 2009 but failed to identify fraudulent money palatial on the balance sheets until this year. it's a scandal of unprecedented proportions. as wire card shares slumped with billions of euros wiped off its market value many questions arose chief among them if a company that became a favorite among investors posted fraudulent accounts for years on end why did nobody notice isn't that what auditors are for in this case the why formerly ernst

and young 100 this year you know it's impossible to understand how there could be a comprehensive audit saying everything is ok except nothing was ok. the why has to explain that gap but i can't imagine how they possibly could clearly a lot of things went wrong sometimes you know. was it incompetence negligence a conflict of interest or perhaps lucrative consulting contracts. this is here and this is one piece of the puzzle we have auditors in this case the y. who also acted as consultants the auditors job is to check that everything's above board. but if the auditor 1st advises the client how it's done then that's not going to work. it's like letting the fox guard the henhouse. in any case the auditors failed to notice that there was a hole in the company's accounts 1900000000 euros. but

financial services providers are also subject to government supervision in this case and germany's financial regulator bothin as you are the wire card bank was subject to checks by bof a in but the parent company wasn't because it was classified as a tech company like siemens despite being involved in financial services and monetary transactions. never had the access that would have allowed it to take proper supervise reaction. did do what it always does check that the firm is complying with capital market regulations but that wasn't the problem it was fraud there was money missing maybe money laundering we don't know yet there's. a reason so many what we do know is that wire cards accounts were faked regulation of this major dacs listed company did not work resulting in the loss of

a lot of money and trust. i've always found financial consultancy is pretty suspect in this confirms why. it's crazy that this could happen here despite all the authorities who regulate these things because what you are saying above i'd say fan and should cover the losses incurred. compensation for stock market losses due to fraud one of several questions to be resolved in the courts where card is potentially germany's biggest post workout inc scandal and one that has investors deeply worried because it was down to the control system but if it didn't work with wire card and there were blind spots everywhere you have to ask whether this could happen somewhere else too. you know you have a problem that's bad for trust bad for shareholder culture which is in any case fragile in germany is the scene you see how complex it all was like something out of james bond it would be exciting if it weren't so sad.

sad indeed the icon scandal is not fictional it really happened and why what prompts entrepreneurs and manages to drop any sense of decency and feel their own pockets no matter what impact their criminal behavior has on the company its employees and its shareholders is it a reaction to stress or a character flaw well here's a look at how white collar crime can work. this is the story of one person's plunge into white collar crime joe is in court he defrauded the toy manufacturer he works for to the tune of 1000000 euros. it's not that he really needed the money he actually earns well there as head of the purchasing department . but joe's still deeply unhappy with his company his last promotion was 10 years ago he wants more. so he comes up with a plan and joe as

a logical self interested personality. weighs the risk of being caught against the potential gains. he takes advantage of his privileged position sells toys without informing his company and pockets the revenues then he covers up his crime by forging paperwork. to ease his conscience joe tells himself he'll pay it back someday for months his plan works he feels in control of the situation but joe miscalculated and isn't intentionally caught. criminals like joe cost the german economy an estimated $100000000000.00 euros every year one in 4 of those who commit fraud are top level managers. the official figures are actually falling with fewer white collar crimes committed and less cash involved but many white collar crimes go unreported because companies are worried about image. they

adopt compliance regulations asking employees to voluntarily follow the rules that's one way to help hinder fraud and corruption. maybe next time joe will follow them to 5 years from now when he gets out of jail. well poor joe why it caught is just the latest in a long list of high profile scandals in the business world in recent years remember these are great folks live in submission cheating scandal was brought to light in september 2015 and the industry is still picking up the pieces but fraud on a large scale this not only happened on this side of the atlantic and it's certainly not a new phenomenon let's refresh your memory. financial fraud can go unnoticed for years no matter how many cases are uncovered most will never come tonight. the list is long. the list is long from tax

fraud to corrupt to steal cartels. the types of fraud aren't endless. it can be very very expensive. to take for example low tax a company with a technical innovation its horizontal drills were supposed to allow underground cables to be laid without having to tear up roads. only low tech sprawl smart meter fabricated more the 90 percent of the supposed revenue that left investors and creditors out of pocket to the tune of more than $2000000000.00 euros. a year later enron shops the markets they give us energy giant had over $20000.00 employees and crooked board members balance sheets were falsified the enron

collapse destroyed the company pensions of many workers it led to a film about one of the most spectacular fraud cases in u.s. history and white to more than $60000000000.00 from stock exchanges. there was also a large scale accounting fraud at the u.s. telecom company and world com the former c.e.o. was sentenced to 25 years in prison investors lost around $150000000000.00. instances of cooking the books a common like it italian dairy giant pommel at the cutbacks following insolvency hit workers heart. attacks parmar world com. all classic cases. the common factor is that the main driver of the scams has a powerful position in the company and is also a major shareholder. the reason actually when those 2

combine you can succeed in avoiding certain control mechanisms those mechanisms were probably also structurally underdeveloped but the fraudster can subvert them. one false step he became infamous bernie made he was given 150 years in jail for his ponzi scheme more than 4000 investors well why they lost their money. the question for the ethics experts why did they do it. i'm going to talk perceived perceived sense that they can. get away with it bernie made off to he wouldn't have thought it would collapse at some point he did hope to be able to transition from the ponzi scheme to a normal system. and the last aspect is rationalizing it our ability to do something immoral and to tell ourselves that what we're doing isn't

so bad that it's legitimate well. maybe that was the case at volkswagen when the company cheated on vehicle emissions tests something some of its competitors were also doing the lawsuit say the damages will likely run for years. so why is just the latest big fraud case and it certainly won't be the last. so have we learned nothing from previous scandals what happened for example to the brokenness who helped to bring about the global financial crisis are they aware of what they've done or have they lost all sense of reality chasing after the next big deal growing to understand should know he worked in london's financial sector and wrote books about the madness of a world possessed and obsessed with money making our london correspondent big mosque caught up with the insider more than

a decade after his revelations. put 12 years he was one of them then he turned against his former colleagues and published a book on greed in the city of london. garrett anderson the film a utilities analyst with some of europe's biggest banks in this place was populated by gamblers who took big risks who were thinking short and who didn't really care about the consequences their actions. this is one of the many places i see come back in the day we have 34 hour lunches and maybe there's a bunch of strip joints of about 500 yards that way cocaine dealer was just over there. it was all very good back in the good old days. but how would you describe your former self the heroin and isn't that what here in

this environment. is pretty cocky pretty arrogant i was gambling been a risk taker over confident so i was basically a pretty perfect personality for a stock broker and in fact my attitude. as i was then helps explain why the financial crisis happened. the people who invented the financial products that exploded sent the global economy into a tailspin knew they were creating a financial planner that was doomed to fail because interest rates don't stay low for a puppy process don't go out for them but they didn't because in the 10 years while they fry these products they made millions in bonuses but. how was the atmosphere in the city why didn't you sense that something was going to happen you know i've been kind of calling a financial crisis pretty much every 2 or 3 years since i joined the city. in 1906

i say ok this is it this is the big one guys. and we all felt that and that was actually one of the problems because when you feel like the whole house of cold is going to fall down the incentive then is to make as much money by whatever means possible. that year and you're thinking only of that year before you know the bank even exists 2 years' time he'll have a critical fall myself but it was actually a little bit late now i had guilt pangs all the time about the industry i was working in from year to when i finally left after 12 years every year i said this in my last year i'm just going to do it for one year and every year that bonus would come i think we're also going to do in my life is going to be even bigger next year i'll stay so i got trapped so did you still do the devil and i did sell my soul to the devil very good price. yeah i did i saw myself that i would do

anything to get that bonus safe in the knowledge that if my actions then later proved to create profits that were not real it didn't matter it was too late i had the money good boy it's mine if somebody was soft because of your actions. i would say the. worse off because of the actions of this place of which i was a member i mean we've been living in austerity here all real wages. so haven't even changed for about 10 years in the u.k. and so on that basis the casino i was working in and paid up member will help to make sure most people in this country's laws probably slightly less well off than we should be. now then we shouldn't always put the blame on office making mistakes based on false assumptions it's human brace yourself who are all prone to misinterpreting economic

realities each and every one of us can fall victim to illusions sometimes we even fall for them knowingly look. at our economic illusions. imagine we spend our whole life tied up in a cave in front of us is a big wall on which we see figures passing by but they are mere shadows of things moving in front of the fire. we believe it's reality but it's an illusion plato's cave the allegory by the ancient greek philosopher is still valid today. politicians entrepreneur and consumers can fall victim to illusions misunderstanding or misinterpreting reality in the 950 s. the soviet union aimed to overtake the u.s. economy among other things its plan called for communist corn that was twice as large as capitalist corn but the plan fell apart due to crop failures and unwieldy

the rock receiving the victory of socialism proved to be an illusion. illusions also took root in the west for example you're going to shrimps vision in 1998 was to turn the maker of mercedes cars into a global automobile company so he merged i'm a benz with u.s. car maker chrysler celebrating it as a match made in heaven. but the 2 company's culture and philosophy were completely incompatible the project failed ultimately at a cost of around $40000000000.00 euros the vision to be an expensive illusion. and consumers i believe there do use those were environmentally friendly intil it turned out that emissions test had been manipulated and the vehicles polluted bunch more than was claimed. and illusion driven by fraud.

and how about the rest of us honestly we love illusions at least at 1st nothing pulls us in like a well made illusion. advertising consumption financial markets a large part of the economy is based on illusions. today we sit in our caves or at least in front of our screens voluntarily but before our illusions shatter we better leave the cave and seek out reality. other let's take a breather and look at big dreams from a different perspective not every vision is doomed or tainted by criminal behavior and to bring about useful change is sometimes tough to think big like. a young woman from india she has no need to work for a living but the air of a 1000000000 dollar business empire decided to found a bank providing micro credits.

it's something. you don't choose when you're born. and then your family is a pop star in india and she's just been on the festool she doesn't need to make money from the 2nd because she's been british since. for most of times having a life like 9 years is nothing more than a dream. i think specially in india being gap between the rich and the boy is massive and while i'm growing up there always thought of me from within and i want to do something to bridge that gap. the bill of family's private assets are worth an estimated 9000000000 euros

have fallen in some industrial empire but the manja didn't join the family business she set up her own company saw tundra microphone and grants micro loans to people who would normally be tonight alone she had no prior experience in banking. so initially no one did we see as the bank was indignant seriously no one was willing to lend to me no one was willing to come on board in terms of the team all rather toughest thing to get over was getting people on my side and making that better make them understand i'm serious about this and i'm not just i'm a kid but i'm a kid with a vision. indians who were born into poverty usually state for the cost system often determines people social status and chances of climbing the ladder and so i just decided for them. it's

almost impossible for farmers in the countryside to get a bank loan most of them don't have the necessary financial means all securities. so tom true microphone helps people like these with what's called a micro credit. this farmer has taken out a micro credit of around $100.00 euros to buy another cow and increase his production the family needs a 2nd line to pay for a hospital visit for the father and son of around 400 euros. oh my they. c came up with a life it was very difficult before we were struggling a lot. i don't know he's dreamt of having a cow but i couldn't make it happen. thanks to the micro credit i was able to buy one the company has already paid out around $30000000.00 euros in my current credits mostly to women the money goes towards all kinds of things like machines

animals and you house car and insurance around 99 percent of the borrowers keep up with that repayments because of an unused special system. and so i created a logos for single. ladies in a group and if one doesn't then everyone all the other leagues have a chip in any way and that it adds a little bit of pressure. for private bank has already helped more than half a 1000000 women across india. demand is very high for these micro loans. even though the interest rates are comparable to those of a conventional bank. in the process the simple customers apply for a loan online using an app. every customer gets that are in digital account.

and then you bella many times that she's not a charity. i think we are a catalyst for their growth and that's what i would like to see because if you pass with principal and interest what are helping them in any way we're just trying to provide them with the broad out that would support them to grow. this is a chance for people to break free from poverty a chance that they might not have got from anyone else. now that report was made before the coronavirus pandemic hit of course i think shows that the business world doesn't only consist of fraud and greedy venturous there's also some good to there let's not forget that that's all for made this week for me in the team thanks for watching.

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come. to the point of strong opinions clear positions of international perspectives about a. conflict between the u.s. and germany over the nordstrom's gas pipeline linking germany with russia looks set to boil over the american science pondering to contain the threatening drastic action find out more wrong to the point. to the point. that i'm in 30 minutes on t.w. . the time and place captured in pictures. images of cars

on. the photo studios archives documents lives in bygone era. and leads to those living today. they are guarding gaza as minister in a box. collected memories. in 75 minutes on d w. in deep. of climate change. cuts from a dose of. innocent people. to years do they have for their future. cut. deep

w dot com for chemical services the meeting. could tell the truth. about this issue when i arrived here i slept with 6 people in a room. it was hard i was fair. i even got white hairs that. language. this keeps me and could help us maybe to entrust the fate you want to their story my parents were fighting and reliable information for margaret. they've been robbed of their soul that's what a people experiences from their heritage is taken from them the. countless cultural riches were brutally stolen from africa and carted off to europe by colonialists. each artifact has blood on it from the wounds that have yet to heal.

what should be done with the stone or from a 1st come. this is being hotly debated on both continents the. stolen soul starts september 7th on g.w. . this is news and these are our top stories. president trump has announced that israel and the united arab emirates have agreed to a u.s. brokered plan to normalize relations the u.a.e. will recognize the jewish state in return for israel dropping its plans to annex parts of the palestinian west bank the palestinians have rejected.