'Over time, mergers, consolidation in the European banking sector would be sensible for a variety of reasons'.
Bloomberg News reports that Deutsche Bank endorsed the view that European banking consolidation is coming, underscoring the pressure the German bank is confronting over a possible government-brokered combination with Commerzbank.
"There’s a lot of talk in the sector overall that over time, mergers, consolidation in the European banking sector would be sensible for a variety of reasons," CFO James von Moltke said in a Bloomberg TV interview as fourth-quarter results were published. "We’ve tended to agree with that. What form it takes, how long it takes to do is kind of anybody’s guess at this point."
In the meantime, Reuters reports that time is running out for Deutsche Bank to turn around on its own, making a merger with rival Commerzbank more likely, two people with knowledge of the matter said last week.
Bank executives, analysts, government officials and some investors thought until some months ago that both banks had more time to turn around independently, but that opinion has recently changed, one of the people said.
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