UBS, Deutsche held talks on investment banking alliance - WSJ

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UBS Group AG and Deutsche Bank AG held talks about combining their businesses ea...

) held talks about combining their businesses earlier this year, including discussions in mid-June about an investment banking alliance, the Wall Street Journal reported on Sunday.

A deal could not be reached as the two lenders were not able to sort out issues including structuring and allocating capital, the newspaper reported, citing people familiar with the talks. Reuters reported in May that discussions stalled between the two banks on a tie-up of their asset management businesses due to differences over who would control the combined entity.

Deutsche Bank declined to comment on the WSJ report. UBS did not respond to a request for immediate comment on Sunday. Reporting by Kanishka Singh in Bengaluru, Silke Koltrowitz in Zurich and Chris Steitz in Frankfurt; editing by Jason Neely

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No one that is sane could seriously consider merging with Deutsche after taking a good hard look at their books. Forget about Italy, Deutsche ist the single biggest threat to financial stability of the Euro zone.

This will make some idiots buy DB tomorrow

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