Deutsche And Commerzbank See Merger By Mid-Year If Turnaround Fails
Is Germany's largest bank Too Big To Fail - or Prosecute?
In the clearest sign yet that a tie-up between struggling German lenders Deutsche Bank and Commerzbank appears to be almost inevitable, despite the protests of executives from both banks, Bloomberg reported on Thursday that senior officials at both banks are bracing for a government-brokered merger as soon as mid-year.
Talks between the two lenders have been intensifying, as was implied by reports about meetings with senior German Ministry of Finance officials in recent weeks.
DB's inability to reverse its slump in revenue has apparently led the German state to the conclusion that the only way to save both banks is a merger that will allow them to cut costs amid a search for synergies.
https://www.zerohedge.com/news/2019-01-31/deutsche-bank-and-commerzbank-see-merger-mid-year-if-turnaround-plans-fail
DB has a knack for scandal including alleged particpation in Danske Bank Scandal
4.1 Tax evasion
4.2 Espionage scandal
4.3 April 2015 Libor scandal
4.4 Role in 2007–2008 financial crisis
4.5 2015 sanctions violations
4.6 2017 money-laundering fine
4.7 Robert Mueller's investigation
4.8 Criminal cartel charges in Australia
4.9 Alleged involvement in Danske Bank money-laundering scandal
https://en.wikipedia.org/wiki/Deutsche_Bank#Controversies
In 2017 vulture capital firm Cerberus Capital Management sank $2B into DB
The negative reaction of DB stock - shares slumped more than 3% on the news - notwithstanding, substantive reports of a possible merger are welcome news for at least one firm: Cerberus Capital Management. Back in 2017, the private equity firm sank nearly $2 billion into Commerzbank and Deutsche, believing that "basic blocking and tackling", like exiting lagging businesses, could help the banks earn their cost of capital and trade closer to their book value (they're both currently trading at some of the steepest discounts to book value), as Bloomberg's Elisa Martinuzzi argued in a column published earlier this week.
Dan Quayle, former Vice President of the United States 1989–1993, who served with former President George H. W. Bush, joined Cerberus in 1999 and is chairman of the company's Global Investments Division.[8]
https://en.wikipedia.org/wiki/Cerberus_Capital_Management