German Bank fuels foreign bank greed. Deutsche Bank, which has been struggling for at least three years and has seen its stock market rise by 37% since the beginning of the year, is attracting the greed of foreign banks.The first Deutsche bank, whose stock price is at its lowest historical levels, would have attracted the interest of major international institutions, including JP Morgan and the Chinese ICBC. Chancellor Angela Merkel reportedly spoke with the UBS boss. The first German bank, eyed by American and Chinese rivals?
German magazineWirtschaftswoche, says on Friday (July 6th) that JP Morgan and China's ICBC, the world's largest bank in terms of assets, would be interested, particularly in strengthening their presence in Frankfurt. from the perspective of Brexit. "We deny this story, it's not true," a spokesman for JP Morgan told Reuters. According to the magazine, citing sources in the state government of North Rhine-Westphalia, Chancellor Angela Merkel reportedly met Axel Weber, the former president of the Bundesbank (the German central bank) and now president of UBS, on 3 July., and asked for his opinion on the situation of Deutsche Bank. "This is purely speculative and can not be confirmed," said Angela Merkel's spokeswoman Steffen Seibert at her regular press conference.
Bargain effectThe reaction was quick on stock markets: Deutsche Bank share climbed nearly 5% at the opening. (just over 2% two hours before closing). It rebounded 8% in one month. However, it only capitalizes 20 billion euros. This low valuation may create a windfall for giant behemoths such as JP Morgan Chase. ($ 353 billion) and ICBC ($ 280 billion). Deutsche Bank is engaged in a restructuring that never ends. After three consecutive years of losses, the new CEO Christian Sewing named in April announced a refocus on Europe and drastic cuts in the workforce in the investment bank (7,000 jobs). Especially in the United States, where 400 bankers were fired in New York.
Last week, the US subsidiary was the only institution that the Fed refused the capitalization plan. These persistent difficulties have also resurfaced in early June the rumor of a merger with fellow Commerzbank. Whose stock market value began to approach that of his great rival.