ECB will reportedly ask Deutsche Bank to raise fresh funds for merger

  • 📰 CNBC
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 72%

United States News News

United States United States Latest News,United States United States Headlines

The European Central Bank will ask Deutsche Bank to raise fresh funds before it gives the go-ahead for a merger with a state-backed rival, a person with direct knowledge of the matter said.

The official said that Deutsche would be required to have the buffer, which has yet to be calculated, to cope should it experience setbacks while integrating Commerzbank if a deal is agreed.

While Deutsche has argued the case that little or no capital may be needed, regulators, worried about the group's U.S. investment bank and the potential fallout of it failing a stress test there in September, are putting their foot down.With much left to be negotiated in any deal, the size of a capital hole remains unclear but is expected to run into billions of euros.

A deal would see Berlin become a shareholder in the combined group. Germany currently holds a 15 percent stake in Commerzbank after a bailout during the financial crisis.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ECB will ask Deutsche Bank to raise fresh funds for merger: sourceThe European Central Bank will ask Deutsche Bank to raise fresh funds before it ... Douche Bank Anche perche' il Bundestag ha detto che i contribuenti non dovranno cacciare un centesimo... Call in the trump chips
Source: Reuters - 🏆 2. / 97 Read more »

Capital Question Clouds Deutsche Bank Merger TalksOne of the big questions surrounding Deutsche Bank’s possible merger with Commerzbank is how much capital it might need to raise from shareholders to finance the deal. Oh you mean the AFN, you know calculating a company's Additional Funds Needed to Finance (whatever goals the CEO puts on the Annual Report)? Oh I got you!! Send me the 10k... and 10k
Source: WSJ - 🏆 98. / 63 Read more »

Deutsche Bank and Commerzbank divided over pace of merger talks: sourcesDeutsche Bank and Commerzbank are divided over the pace of their merger talks, t... They need more time to cook the books I guess🤔
Source: Reuters - 🏆 2. / 97 Read more »