Germany: Government told to let go of Commerzbank stake

Germany’s Monopolies Commission has reportedly recommended the government to sell its shares in Commerzbank first acquired in the wake of the financial crisis as part of bailout efforts.

Reports say the head of government advising body the Monopolies Commission, Daniel Zimmer, presented a report and stated that “the monopoly commission actually urges that the state withdraw from Commerzbank.”

The government acquired a 17 percent stake in the lender in a $25 billion bailout of the bank following the global financial crisis. While it said it does not plan to be a long term shareholder in the bank, the government says it does not wish to sell the shares at a loss to taxpayers.

Analysts say the shares’ current value will inevitably lead to an investment loss, however.

Full content: Reuters

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