Germany ready for Commerzbank nationalisation: report

, Comments 2 comments

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

2 Comments To This Article

  • German posted:

    on 7th December 2011, 17:01:24 - Reply

    Sounds like you are one of the X Dresdner traders dissapointed with the payout that you recieved.
  • Englishman posted:

    on 7th December 2011, 14:00:34 - Reply

    I'm pleased to see them having difficulties, after the way they treated me. This is a questionable institution, unless you have more than half a million on your account.