It looks like the wheels are turning for a tie up between Deutshe Bank and Commerzbank.
The German government owns 15% of Commerzbank and is its major shareholder. Although DB bank might go out without initiating a major market meltdown the similarity to the US government bank bail out doesn't escape me in this situation, ie the man on the street could partially become responsible for saving a major bank, in this case a major European bank. The other question I have is.......is it possible for such a previously systemically important bank just to disappear by being absorbed into another bank without some fall out?
Surely when all the due diligence is done and dusted for the merger the skeletons in DB's closet will have to come out or will the German government acquiesce to keeping those skeletons safely hidden? Esh
Germany confirms Deutsche-Commerzbank merger talks, some investors wary