Bank staff in Germany are getting nervous. Rumours are rife that consolidation of the industry in that country is imminent.
A deal between Commerzbank and Hypo has long been discussed in the media and it is generally believed that Citigroup and Credit Suisse are sniffing around in Germany looking at potential acquisition targets. The latest rumour is, however, somewhat more sensational.
It goes that some of the larger German banks are worried about a foreign takeover and, with this in mind, are exploring a mega-deal, which will draw together Deutsche, Dresdner, Commerzbank and Hypo. Some merger! But Deutsche Bank supervisory board chief Rolf Breuer has dismissed this rumour, calling it 'absurd'.
In a related story, Commerzbank is said to have pulled out of plans to outsource all of its investment banking IT operations to IBM.