The Sunday Times reports that Commerzbank has asked UK regulator The Financial Services Authority to look into concerns it has that 'market traders are mounting a concerted attack on the bank's London trading operations'. According to the newspaper, Commerzbank executives are worried that the bank 'has been the victim of raids by rival traders with knowledge of its trading positions'.
It looks to some that the bank's recent round of redundancies has created a 'backlash' against the German firm. An insider is quoted, saying that 'it is clear that there are people in the market intent on damaging the bank by using sensitive information'. Now why would they do that ?
Could it be something to do with the fact that some Commerzbank traders are said to have found out that they were to be made redundant earlier this month via a live internal TV broadcast from Frankfurt ? Surely not.
Perhaps it's something to do with the claims that several proprietary traders were recalled, soon after they were let go, as their positions were not completely unwound. Nah.
How about because some traders were last week still said to be waiting around for their marching orders ? Described as the 'undead', it has been claimed that the traders aren't doing any work, but are busy shifting through GQ magazine and updating their cvs.
Well, what goes around, comes around. Some think that Commerzbank has only itself to blame if some people are out there trying to destabilise the firm. From the outside, it does seem that the bank could have perhaps handled the redundancies a little more sensitively.