Deutsche Bank AG (DB)

[fromtheuk]

The merge with Commerzbank makes no sense to me.

DBs current non-official strategy is to reduce costs, shrink the business and close down positions as it can afford to do so. It will take years, and it’s liabilities with Dirivatives and exposure to Italy have every chance of exploding before they are able to resolve them. That said every year DB gets a little bit smaller and a little bit less dangerous. I can’t see a better strategy.

Merging with Commerzbank however, is a move in totally the wrong direction. Selling the performing assets to American Banks (I assume they won’t want the toxic stuff) dosnt help. The cost of merging what’s left would be astonishing. You can see how there would be savings in areas like HR etc, but anything technical would cost a huge amount of resources in time / people / money.

My guess would be as they look closer at this, that will be clear.

My preference would be to carry on downsizing, close down the toxic stuff as you can, until what you are left with can be safely sold, or even used as a base for a more profitable enterprise. DB as an entity however must come to an end. It is too mired in corruption and the shady dealings of the past.