FAST FIVE: Deutsche And Commerzbank Begin Formal Merger Talks: This Is What The Combined Bank Will Look Like
Deutsche Bank's management board was expected to talk in a meeting scheduled for this morning about various options for the bank, including a potential merger with Commerzbank, people close to Deutsche Bank said.
And while the banks had considered a merger for years, under different CEOs, previous talks ended before any formal announcements were made.
Yet while the banks' workers will suffer thousands of synergies, the advising investment banks are already counting their year-end bonuses: until recently, Commerzbank had engaged bankers but they told peers no deal was actively being negotiated.
Deutsche Bank has struggled with higher funding costs than many rivals, making profits harder to come by for each euro in revenue the bank earns.
Unfortunately for shareholders, despite the revenue boost, costs will likely remain largely flat with little contribution from massive synergies as both banks have already laid of thousands.