FRANKFURT: Berlin is so worried about the health of Deutsche Bank that it pushed for a merger with rival Commerzbank even though it could open up a huge financial shortfall, a German official told Reuters.
A second German official said Deutsche's future was in question because high costs left it with little profit. Asked about a merger between the two banks, a third official said one was urgently needed to reduce the number of branches in an overcrowded market.Both said a buoyant jobs market in Germany made it easier to make staff cuts without prompting large protests because those employees would be easily able to find other work.
Its share price has tumbled after a string of scandals and fines including a US$7 billion plus penalty in 2016 for selling U.S. home loans that unraveled in the financial crash.Deutsche's significance was underscored by the International Monetary Fund in 2016 when it said the bank's links to the world's largest lenders made it a bigger potential risk to the wider financial system than any other global bank.
The new group could get financial support from a new fund that will be set up to support strategic industries in the face of competition from China.
France Dernières Nouvelles, France Actualités
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