Germany ready for Commerzbank nationalisation: report
Government officials are prepared to step in and nationalise Germany's second-largest bank if the stricken institution cannot raise extra capital next year, a magazine reported Sunday.
Der Spiegel, citing anonymous government sources, reported Berlin could reactivate a rescue fund and buy up Commerzbank shares if it could not raise capital by the end of June.
The German government already owns a 25 percent stake in Commerzbank.
The financial institution has been hammered by the Greek debt crisis and last month announced a new round of measures to shore up equity.
European banking officials estimate Commerzbank needs to recapitalise 2.9 billion euros ($3.9 billion) by July, Der Spiegel reported.
German media reports state Commerzbank believes it can reach this target without government help.
Deutsche Bank is Germany's largest.
© 2011 AFP