Commerzbank and Deutsche Bank start discussing a merger

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Commerzbank may have the better bargaining position in a proposed merger with Deutsche Bank

the sepulchral calm of a German Sunday. On March 17th, after months of prodding from the German government and chatter in the financial press, Commerzbank and Deutsche Bank, Germany’s two largest listed lenders, said that they would begin exploring a merger.

Encouragement from Berlin alone is not—or should not be—reason to merge, although the government is Commerzbank’s biggest shareholder, with 15%. The right gauge is what all the shareholders of both banks would stand to lose or gain. You might suppose that Deutsche’s should be keen on a fresh start.

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