BaFin, the German financial regulator revealed that it is planning on increasing its supervision capabilities. The new Head of the Federal Financial Supervisory Authority, Mark Branson, commented that his agency is pursuing an agenda in undoing the wrongs of the recent WireCard scandals that greatly lowered the reputation of BaFin. He wishes BaFin to strengthen in criticism and supervision of all financial firms.
The new head said that he wants to give the firm “more bite”, as quoted from Reuters, conveying a future strife for more power over the market. However, Branson acknowledges the road ahead, “But for me, this is only the beginning of BaFin’s long-term development. It will take time before we reach our objectives in all areas,”
BaFin recently reformed some of its exiting measures, while also introducing other fronts. For example, the regulator reorganized its whistleblower program
Experts all around rushed to analyze what follows for BaFin, with one claiming that the agency needs to be more independent from Berlin in order to restore its credability.
The WireCard controversy affected this year’s election for one Olaf Scholz who ran against Chancellor Angela Merkel. Olaf Scholz, the German Finance Minister, was heavily criticized due to his failure to tackle the WireCard predicament that was all over the news.