The pinhole puncture in the global “Fintech” bubble keeps growing, despite drastic attempts to seal it shut. The most recent and radical attempt occurred on February 18, when BaFin, Germany’s financial regulator, issued a temporary short-selling ban in Wirecard after its shares plunged 40% in less than three weeks. Wrote one news source, “Germany bans speculative attacks on Wirecard stock”, as if those shorting the market were wielding pitch forks and lobbing actual threats against the stock’s upside.
Spoiler Alert: This is not about payment apps! It’s a little bit about Robots, but not Robo Advisors. Whoever had to get rich writing them, pretty much has. Tough luck.
I read about a boring merger of fund managers in the UK recently. Standard Life and Aberdeen Asset Management are supposedly merging to stave off competition from low cost, passive fund managers. That’s what triggered my thought process.