Thursday, September 1, 2016

German Bank: All options on the table – Shareholders

German Bank CEO John Cryan has granted merger plans with Commerzbank a rejection. Instead, the bank checked other options. Yesterday’s rally at Deutsche Bank share is thus probably stopped for now.

a merger with Commerzbank or another competitor represents Cryan currently not on the schedule. Basically he thinks a lot of mergers, especially in Germany. “We still need Concentrations – nationally – but also on the national borders. Only then can we permanently work economically, “he said at the Handelsblatt conference” Banks in Transition “. In Germany, there would be too many banks, so Cryan on. But the German bank itself would first be smaller and simpler, before a merger with another bank standing in the room.

One possible merger with Commerzbank is not the only strategy that will be played at Deutsche Bank. It is not clear how to proceed with Postbank. Splitting the industry leader has also been contemplated. And critics always bring a nationalization this week. According to information from the Wall Street Journal this weekend meet senior managers of Deutsche Bank, to discuss the future of the asset management division. Recently the wind has probably turned back and a majority is now against a sale. The stable business field in troubled times a secure source of income, the needs of the group at the time urgently.

premarket listed shares of Deutsche Bank a little harder. After the denial of Cryan the air but for now get more. The management must first decide which policy option it chooses. Although the price to book ratio below 0.3 is very low, translated only experienced traders to a fraction of the medium-term downtrend at 14.10 euros. The stop should be placed at 13 euros.


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