Connect with us

Hi, what are you looking for?

Stocks

Deutsche Bank & Commerzbank Shares Rise Amid Merger Speculation

According to Reuters, Berlin is now so concerned with the health of Deutsche Bank that they are now pushing for a merger with Commerzbank. The news has been welcomed by the markets, and shares in both banks have risen as a result. The leadership of both German banks have agreed to hold talks, so they will likely welcome the news from Berlin as well.

The news surrounding Berlin’s stance on the potential for a merger carries several significant consequences. While the result would avoid a disaster at Deutsche Bank, there are fears that it could cause a financial shortfall in Europe’s largest economy. Commerzbank has already agreed to the talks, and the German government owns 15% of Commerzbank, and would presumably be a shareholder in the merger’s aftermath. One government official has commented that a tie-up could result in a financial hole. When banks switch ownership, the bank is legally obligated to reevaluate assets like government bonds.

Deutsche Bank has found itself in some troubled waters in recent years. The future of the bank was brought into question as a result of high costs, which have left them with worryingly low profits.

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

As Russia’s invasion of Ukraine continues, many global businesses have pulled their dealings out of Russian territories due to a mix of sanctions and...

News

In the last few weeks, fears have begun to surface of another potential recession striking the United States economy. Economists have been working to...

News

It’s no secret that the highs of the COVID-19 pandemic cost movie theater chain AMC an unprecedented amount of money. As people isolated at...