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Job cuts wanted for Deutsche Financial institution and Commerzbank merger – Information by Automobilnews.eu

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Job cuts wanted for Deutsche Financial institution and Commerzbank merger


The one manner a possible merger between Deutsche Financial institution and Commerzbank would make sense is by making large job cuts throughout the 2 corporations, a strategist advised CNBC Wednesday.

information.

Each ING and Commerzbank declined to remark when approached by CNBC.

The 2 German giants went public with merger talks final month, prompting labor union issues about potential job losses and questions from analysts concerning the deserves of a mix.

Patrick Armstrong, CIO of Plurimi Funding Managers advised CNBC’s “Road Indicators” on Wednesday “The one manner (a merger) is sensible for these two banks is very large job cuts, and whether or not the German authorities desires to power collectively one thing that is going to create lots of job losses.”

‘I feel the federal government want to put them collectively to do away with some dangers, however I do not assume they need the job losses that can include it. So these banks have too many workers. In the event you take a look at American banks, in case you take a look at the well-run European banks – a lot increased income per worker than the German banks are producing.’

Announcement of the merger was adopted by experiences Deutsche was trying to elevate as much as 10 billion euros ($11.2 billion) in contemporary fairness to help the merger.

Armstrong, mentioned ING could be a ‘nice companion’ for Commerzbank, however advised job cuts had been the one manner Germany’s second-largest financial institution could be engaging as a takeover candidate.

He revealed his massive weights in European banks are allotted to ING and BNP Paribas, including: ‘They pay out 50% of their earnings in dividends. We predict these dividends are sustainable for these corporations – they have a 12% tier one capital ratio.

‘These are comparatively protected banks which are low-cost, the German banks should not protected banks which are very low-cost, and I favor the upper high quality of the ING and BNP to the German banks.’

Job cuts wanted for Deutsche Financial institution and Commerzbank merger – Information by Automobilnews.eu
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