Deutsche Bank studies merger with Commerzbank this year
Executives of the main German bank have on the table the letters for a possible merger with Commerzbank sponsored by Angela Merkel
European banks are hit hard after word of the merger intentions between Deutsche Bank – the main German – and Commerzbank. According to the Bloomberg agency, the somewhat desperate initiative has the support of Angela Merkel’s government.
Faced with the possibility of a merger of both organizations in the coming months, European banks will falter. The measure would seek to reduce costs and take full advantage of economies of scale if Deutsche Bank does not go back in the first quarter of 2019.
In any case, a deep distrust is perceived in the market, especially on the part of investors, given that the true situation of the main German bank is not known.
The last months of 2018 have been losses for the bank, which has caused the discontent of its executives. However, they remain supportive of Deutsche Bank’s president, Christian Sewing, who since last summer has been promoting the need for a “global bank” for Germany.
The term refers, of course, to the merger of the two bodies, which would be considered an emergency measure in the face of the loss of more than half of its value experienced by Deutsche Bank’s securities in 2018.
The situation does not improve, since in today’s session, both organizations quoted with falls of more than 3%, and this has had a negative effect on European banks that have retreated 1.5% on average.
M.Pino
Source: Finanzas.com
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