Sub-Prime Problems

Despite Attempts to Move On, Commerzbank, Germany's Second-Largest, Still Grappling With 2008 Crisis

Martin Blessing, Commerzbank Chief Executive, is trying hard to restructure the bank. Source: Reuters.
Martin Blessing, Commerzbank Chief Executive, is trying hard to restructure the bank.

Despite ongoing restructuring, including a major sale of assets, there are still several problems facing Commerzbank, Germany´s second-largest lender. The bank, which is based in Frankfurt, plans to cut staff in the face of weak revenues, but has received regulatory warnings for IT failures and has stumbled in raising money amid regulatory concerns about the sale of an exotic form of bank bond, sources told Handelsblatt.

Commerzbank, which has suffered from the ill-timed takeover of rival Dresdner Bank in 2008 and two mortgage lenders, wants to outsource jobs at its finance department to grapple with lower-than-expected interest rate income, Handelsblatt has learned from sources inside the bank.

“The organization needs to be leaner, more efficient and cost effective,” a source said.

A Commerzbank spokeswoman, who delined to be named, citing bank policy, said: “In light of regular checks of operational processes Commerzbank is planning restructurings in the field of finance.”

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