The wars, then. The merger between Deutsche Bank and the Commerzbank is cancelled – and the relief is literally feel.
In the policy, because the feared branch closures do not come now. In the case of the trade unions, because of the deforestation from occurring in the workplace. In the banks because of the tedious and stressful Integration of second, large banks must not be forced. In the case of the investors, who now have to inject fresh capital, so that Deutsche Bank can Finance the purchase of Commerzbank.
If you are not happy as this is the only early. It is not the case, that the cancellation of the merger of the two banks at once two highly profitable institutions. On the contrary, they are more in search of a sustainable business model. You don’t earn enough money and in the competitive home market together with the savings banks and cooperative banks compete with each other.
the financial industry – the merger of Commerzbank and Deutsche Bank, After six weeks of Negotiations, the two largest German banks to stop their merger plans. The implementation risks of the merger were greater than the added value. © Photo: Arne Dedert
How it goes? Perhaps so: Foreign banks such as HSBC from the UK, ING from the Netherlands and BNP Paribas of France to divide the German private banking market. Deutsche Bank and Commerzbank perish slowly or will eventually be swallowed. The fourth largest industrial nation in the world would be without a large Bank and would be instructed in the political and economic crisis situations completely on foreign service providers. That would be about the same as Germany would have not own airport, and to take its air traffic over, say, Paris to handle.
This is problematic in a world in which all of the like. It is less of a problem, when old alliances crumble. So it would be likely not just to be funny, as a German company on foreign loans is instructed, if in the UK, Nigel Farage comes to Power in France, Marine Le Pen and Italy adopted the monetary Union. Other States are aware of these risks and, therefore, a little more prudent with their banks.
No uncontrollable mega-Bank
reminder: The largest German Bank is smaller than the second-largest French Bank. Therefore, the Argument engages way too short, with the Fusion of an uncontrollable mega Bank would be created, which must be at the end of the taxpayer straight. In Europe there are much larger banks and the community of States has adopted numerous new rules, which are to prevent that in the event of a crisis, control of funds flow.
However, requires strategic Thinking, apparently, currently in Berlin and in Frankfurt. Finance Minister Olaf Scholz wanted the merger, but he could never admit to this publicly, and no more active role, because then he would have upset the party base of the SPD. There was to be, to be for the job losses. A large part of the job will be eliminated one way or the other, but just happen to be other debt. The leadership of the German Bank wanted to demonstrate to the merger, but you could be the shareholders. Now it has opted for the path of least resistance. Hopefully it is not a wrong track.