Bloomberg - The possibility of merging Deutsche Bank and Commerzbank wins backing

Deutsche Bank - Foyer Undersphere

The possibility of merging Deutsche Bank and Commerzbank has won the backing of German officials who are seeking a new champion that would protect the nation’s economy from an exodus of foreign capital.

Bloomberg News reports that the government is in favor of a tie-up between its two biggest banks to create a heavyweight that would finance Germany’s export-oriented economy, according to people involved in the discussions. A merger could ensure credit remains open to German companies even during a financial slowdown when foreign investors might withdraw capital, the people said.

Germany is eyeing a domestic solution to prepare for the next slowdown -- and ensure its vast companies stay afloat -- as the European Union drags its feet on the banking and capital markets union many bank CEOs and regulators say the continent needs to kickstart more cross-border deals.

Hit the link below to access the complete Bloomberg News article:

Germany Would Favor Deutsche Bank Merger With Commerzbank

Danske Bank Executives’ Heads Are on the Block

 

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