Can the Two Weak banks get together and Build a Strong Empire?
“Deutche Bank, CommerzBank Confirm merger talks”
An analysis was done on the above news and a presentation was given by Team 10 consisting of
1. Vaishak chandran
2. Swapnil Santhosh
4. Jaya Prakash
6. Sharma Vijay
One of the two largest banks of Germany have confirmed that the merger talks will be initiated. Having a look at the economic atmosphere surrounding these banks and the banking sector of Germany, these merger talks are vital. This is in reference to what these two banks have been facing post 2008 depression scenario, where gaining profit just became a reality a decade later. the aim is to create a national champion, enhance resources, cost savings, debt sharing and build brand reputation. The Government of Germany is also involving and endorsing this merger by being a 15% stake holder of Commerzbank.
This take over is to solidify Deutsche Bank’s position and not let the latter vulnerable to a foreign takeover. There is an estimated loss of jobs and the fact whether the two weak banks can get together and build a strong empire. This would be the question of the hour.
The presented topic was further critically discussed by Team 3 consisting of Abed Ali, Manisha, Sai and Vinay.