Deutsche Bank and Commerzbank begin discussions about a possible merger. The Deutsche Bank confirmed on Sunday afternoon. The Board of Directors have decided to examine “strategic options,” said the Institute. There is, however, no guarantee that it’ll be actually to the merger. You will evaluate all the options after that, “if you strengthen the growth and profitability of the Bank”.
For months, speculation about a merger of the two institutions. Again and again reaffirmed the Federal Finance Minister, Olaf Scholz (SPD), and his Secretary of state, the former Goldman Sachs Germany head Joerg Kukies: Germany need strong banks. The Federal government was open to “economically viable options”.
Alone Kukies met according to official data, in the past year, almost two dozen Times with leading representatives of the German Bank. At Commerzbank, the Federal government over its shares has a say in the participation of over 15 percent, which he holds since the financial crisis, right.
Deutsche Bank head Christian Sewing stressed in a message to employees Sunday that a merger was not a foregone conclusion. “We will only pursue economically viable options with which we can build on our progress by 2018”, – stated in the message. At the present time, it is not clear whether it will ever come to a transaction. “The experiences show that there can be many economic and technical reasons that can be opposed to such a step.”
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Deutsche-Bank-communication-in-chief Jörg’s own added to the village, that it must, taken together, give end “a good Plan, a good integration plan” in order. “To us, thoroughness goes before speed.” The exploratory talks would take “a while”.
according to media reports, Scholz, and Kukies of the Bank, heads of Sewing and Martin Zielke (Commerzbank) urged to check out – ideally before the European elections end of may.
the concern of The policy: Europe’s largest economy, lacks a strong international Bank. While the U.S. competition deserves a long well, Bob up and down Germany’s major banks, ten years after the financial crisis.
Deutsche Bank last with a return to profit zone
The deutsche Bank market is traditionally highly competitive, low interest rates in the Euro area, and high regulatory costs in the industry make it difficult to earn money in addition. This house came made problems such as expensive legal Contaminated sites at the German Bank.
After three years of losses in a row, managed Germany’s biggest money house of 2018, with 341 million euros in Excess of the return to the profit zone. Of shiny billion in the past, the Deutsche Bank is the away win, however, for miles and miles – as well as the share price of the former highs.
Commerzbank has earned in the past year, although about two and a half Times as much as Deutsche Bank (865 million euros), is not in your group’s restructuring included job cuts, but also on the target. The Institute rose in the autumn, in the face of a sharply trimmed the stock exchange value even from the Dax to the MDax.
If a merger of the two houses would be the solution of the problems, is among experts controversial. It is doubted, especially that of the ailing German Bank and under construction to Commerzbank, the “national Champion” with a lot more weight on the international stage would be that the policy wishes.
without a Doubt, could be reduced in a larger unit in duration, the cost, the mega-topic of digitisation of the Institute with United forces could drive forward. However, thousands of Jobs would be on the Brink, to the Central and branch offices, a merger certainly would not go unscathed.
trade unions due to Fusion in custody
The trade Union Verdi fears in the case of a merger of Deutsche Bank and Commerzbank, the loss of tens of thousands of Jobs. “We are faced with such a scenario tend to reject, because such a merger would cost jobs,” said Verdi Federal head of a group of banks, Jan Duscheck.
“In the worst case, you have to worry about the removal of 30,000.” By the end of 2018, the two institutions together employed well to 133,000 full-time employees. Klaus Nieding, Vice President of the German Association for wertpapierbesitz (DSW), feared an even larger reduction in the case of a merger of two large banks: “I’m afraid we talk removal of a possible potential to make a significant five-figure – between 30,000 and maybe even 50,000 employees.”
Since last summer, speculation about a merger of the ailing German Bank with the under construction to Commerzbank. The Federal Ministry of Finance stressed that Germany needed strong banks.
The Federal government after a bailout during the financial crisis ten years ago, with 15 per cent, the largest single shareholder of Commerzbank. “Such a merger would only make sense if a stronger institution that would have more chances on the market and this would in the long term, safeguard jobs,” said Duscheck, is also a member of the Supervisory Board of Deutsche Bank. “Such a perspective we do not see.”
DSW representatives Nieding keeps the fusion idea “for an economically completely absurd”: “It would be no international Champion by this merger,” says Nieding. “Both banks would not arrive even after a merger in the top of the world.”
The Greens insist on a say of the Bundestag
The Union budget politicians Eckhardt Rehberg has warned Federal Finance Minister Olaf Scholz (SPD) in front of a political influence in the talks between Deutsche Bank and Commerzbank over a possible merger. “I call on the Minister of Finance Scholz restraint,” said the budget policy spokesman of the Union Bundestag group, on Sunday at the request of the German press Agency. “A merger of the two banks must add to the purely economic criteria of sense. The need to decide the banks for themselves.“
The Greens insist on a say of the Bundestag in the case of a merger of Deutsche Bank and Commerzbank. “The Federal Finance Minister, Olaf Scholz, must finally lay the cards on the table, what is the role of the Federal government as the largest owner of the Commerzbank in the talks,” said the Green budget, a politician, Sven-Christian Kindler on Sunday, the Reuters news Agency. “It must not be made without the involvement of the Bundestag.”
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Plan of Bank merger, The state takes too much of an impact
Carla Neuhaus
Scholz wool rooms in the Background, a “big Bank with big risks”, before throwing Kindler the SPD politician. The Federal government needs to explain, among other things, whether the Federal government wanted to hold shares in the new Bank when a merger should come about. It was “highly problematic”, if on this way a “major Bank with a state guarantee”. (dpa, Reuters)
