ECONOMY

Bank giants in merger talks after government pressure

Bank giants in merger talks after government pressure


Banners of Deutsche Bank and Commerzbank are pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany. Photo: REUTERS
Banners of Deutsche Bank and Commerzbank are pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany. Photo: REUTERS

Deutsche Bank AG, Europe’s once-dominant financial institution, threw in the towel on years of failed turnaround efforts and agreed to begin German government-backed merger talks with Commerzbank AG.

Deutsche Bank’s leaders are hardly putting their woes behind them: massive job cuts, political turbulence, a weakening European economy, US probes into its dealings with Donald Trump and a herculean integration – not to mention sceptical clients and investors – lie ahead if they reach a deal.

“I have consistently stressed that consolidation in the German and European banking sector is an important topic for us,” Deutsche Bank chief executive Christian Sewing said in a letter to employees. “We have to assess how we want to play a part in shaping it.”

The companies confirmed the move to deeper discussions in statements yesterday, capping months of speculation and behind-the-scenes talks with the German finance ministry. (Bloomberg)

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Irish Independent

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