Commerzbank; Germany’s Third Largest Bank to Be Broken Up

By Tom
Updated on

Commerzbank; Germany's Third Largest Bank to Be Broken Up


Commerzbank AG to be broken up! Handelsblatt has some interesting notes

It could – and probably should – be seen in the context with my story about the British White Paper on banking reform

Commerzbank AG (PINK:CRZBY) (ETR:CBK) (FRA:CBK) is Germany’s third largest bank.

The bank announced Tuesday evening June 26th 2012 that:

1)      The developing and shipping financing is to be sold off.

2)      CommerzReal that offers “open real estate” funds [a German financing structure where (as far as I know) real estate “shares” are paid in and is repayable on demand] will be integrated into the private banking.

3)      Private- and Business banking (seems to be Detail banking) will still offer financing of real estate.

It seems like the long term financing is to be sold off.

Commerzbank was in return for the assistance in 2008 and 2009 ordered by the EU-Commission to sell off their subsidiary Eurohypo AG, but found no buyers. This real estate mortgage bank tried a few tricks, but is now by the end of August 2012 to change name to “Hypothekenbank Frankfurt AG”.

To cut through the “Financial Crisis”, “Basel III”, “Strategic persistence” yada, yada, yada: It might be illuminating to refer to the British Government White Paper on Banking reform (as mentioned and linked above).

Under the British reform, Detail Banking is to be separated entirely from other types of banking.

Again a sweeping reform with very short time limits – which considering Prime Minister Camerons ostentatious walk-out on Merkel and Sarkozy – is not his nor Britain’s cup of anti-heartburn medication.

This supposition gains further support in some weird signals from the “Shire” where Danske Bank A/S (PINK:DNSKY)’s net-bank facility was off-line for 1-2 hours – due to “technical problems” (as if we hadn’t heard that one before? They really should get that IT-department brought up to standard??). The Prime Minister Helle Thorning-Schmidt made a totally superfluous comment that the Danish exemptions from the EU-treaty in due time should be subject to a referendum – though for the time being the time wasn’t due.

If there is a new EU-standard for banking it would mean that Danske Bank’s detail banking would have to be separated from their mortgage banking and their investment banking – and that very soon. Implying that would need a referendum is only necessary in the fanatical thinking of the extreme nationalistic Dansk Folkeparti. It should be noted that the present leader of the arthritic movement Pia Kjærsgaard was once characterized by the late and de-frocked leader as “having no gabs in her ignorance”.

There is no power in the EU that can keep a majority of parliament from implementing new banking regulation out of their own volition – and by sheer coincidence these regulations would be “inspired” by EU initiatives.

To sum it up: When birds start dropping out of the sky – there just might be something in the air.

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