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Reason prevails — no Deutsche Commerzbank

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25.04.2019

Of course it's good news to hear that merger talks between Deutsche and Commerzbank have been discontinued. After all, what could have been the result of a tie-up between two lenders trying to get to terms with their massive problems? We would have still had a problematic bank, just a bigger one. It would incorporate the huge financial risks of the once so proud and arrogant Deutsche, alongside the burden of Commerzbank still operating in the shadow of its bigger rival, dependent on state aid.

The very prospect of merging with a bank in which the state still has a 15% share must have been a horrible vision for Deutsche and will have lowered its motivation to make the mulled merger a reality.

America out of reach

During the financial crisis, Deutsche Bank announced it would be ashamed to accept any state aid. Well, it was probably wrong, because the lender — had it accepted help from outside — would probably not now be in a position of having to fend off merger propositions. Take the US, for example........

© Deutsche Welle