Authorities are investigating how 1.9 billion euros (S$2.99 billion) went missing from the company, a scandal that has triggered calls for regulatory reform.
Braun, 51, pledged about half of his stake in December 2017 to secure a 150 million-euro credit line. That loan was provided by Deutsche Bank AG, which has since divested it, according to people familiar with the matter.
On Wednesday, those pledged shares were worth 435 million euros, easily covering the value of the loan. But after Wirecard disclosed that it was unable to locate 1.9 billion euros, or about a quarter of its balance sheet, their value collapsed to 166 million euros on Thursday, triggering the sales. By Friday, they were worth about 100 million euros.
Share pledges are an increasingly popular mechanism among executives and wealthy investors to unlock cash without giving up control of their holdings. Banks have sought to increase lending to their wealthiest -- and most profitable -- clients in recent years. Secured lending against company stock is a way to deepen a relationship and bring in other business, such as lucrative fees for advice on mergers or stock listings.
But they can be risky for both parties. A soured margin loan to Lu Zhengyao, the billionaire founder of Luckin Coffee Inc., saw his fortune wiped out and contributed to an increase in first-quarter loan-loss provisions at Credit Suisse Group AG.
