the head of The monopoly Commission, Achim Wambach, expected in case of a possible merger of Deutsche Bank and Commerzbank hardly any competition problems. “There is evidence to suggest that the antitrust authorities conclude, would be, together, where appropriate, subject to conditions,” he told the Rheinische Post. “Because the business fields of the two banks overlap, either only low or at least felt competitive, even after a possible merger.”
Wambach, who is also head of the economic Institute ZEW, feared, rather, that the new combined Bank could be because of their size, to a systemic risk. “The merger is a new threat to the financial world may arise, namely, by an increase of systemic risk,” he said. The financial crisis had made it clear that large banks could not be Readily handled and, where appropriate, from the state saved would have to be.
“thoroughness goes before speed”
On Sunday had announced the two largest German banks, that they have begun formal merger talks. After separate meetings of their boards of Directors, Deutsche Bank and Commerzbank announced that it is “the result of host open discussions about a possible merger”. Deutsche Bank’s chief spokesman Jörg own village, said the talks would take a while: “thoroughness comes before speed.”
the two institutions Should merge, in fact, would create by far the largest German Bank, with around 38 million Private and corporate customers, initially approximately 140,000 employees, 1,400 branches in Germany, a market share of around 20 per cent and a balance sheet total of almost two trillion euros. In Europe, the British HSBC and the French BNP Paribas, the third largest in the Institute. On the stock exchange the new Bank would be out of date but only a 25 billion Euro of value – HSBC and BNP to bring it to 145 and 55 billion euros.
The project is also supported by the Federal government, particularly Finance Minister Olaf Scholz (SPD), and his Secretary of state, Jörg Kukies, former Germany-chief of Goldman Sachs. The authority said: “The Federal Ministry of Finance takes note of the decision of the two private banks, about the possibilities of a closer cooperation to speak with an open mind. We are all Involved regularly in contact.” The Federal government is involved since the financial crisis, with now about 15 per cent in Commerzbank.
Ver.di fear a loss of 20,000 Jobs
criticism of the merger plans comes from the trade unions, which reckon with the removal of tens of thousands. Experts estimate that at least 30,000 jobs will be eliminated. Stephan Szukalski, head of the Bank trade Union DBV, told the Handelsblatt: “Our assessment that a merger of Commerzbank and Deutsche Bank would be at the present time, a large error is unchanged. Also, the services Union ver.di is clearly against the project. “There’s 20,000 jobs, and more would stand in the fire,” said ver.di chief Frank Bsirske. The two banks would complement each other makes sense, said the trade unionist who also sits on the Supervisory Board of Deutsche Bank.
Indeed, recent mergers and Acquisitions in the financial world, with major job losses. This applies in the case of Commerzbank and Dresdner Bank, of the Integration of Postbank into the Deutsche Bank as well as for the Takeover of the Munich-based HypoVereinsbank (HVB), a few years ago by the Italian Bank Unicredit.
Germany’s top consumer advocates Klaus Müller also warned against a merger to the detriment of the consumer. “Rising prices and less variety may not be the collateral damage of the banks-Champions”, – said the head of the Federal Association of consumer organisations (vzbv) of the Rheinische Post.
