BERLIN: Lawmakers are warning Germany's finance minister that they will block any attempt to invest public money into a merged Deutsche Bank and Commerzbank, a deal which could require up to 10 billion euros of fresh capital.
A deal would see Berlin become a shareholder in the combined group, which one German official said will need up to 10 billion euros of fresh capital because of restructuring costs and the fact that losses on investments could be triggered by a tie-up. "As things stand, it is unthinkable that the Bundestag would agree," said Binding."Any synergies in this deal would come at an immensely high price: huge unemployment. 25,000 to 30,000 jobs could go. I'm against a merger.""We need competition in the banking market, not mega mergers," said Hans Michelbach, a lawmaker from the Christian Social Union, the Bavarian sister party of Chancellor Angela Merkel's Christian Democratic Union.