- The federal administration plans to diminish its shareholding in Commerzbank.
Government plans to part ways with Commerzbank. Initially, the federal administration aims to lessen its ownership in the company, as disclosed by the German Federal Financial Supervisory Authority. As stated by Florian Toncar, Parliamentary State Secretary in the Federal Ministry of Finance and head of the relevant interministerial steering committee, "The federal government's intervention in Commerzbank back in 2008 and 2009 was vital to prevent financial market turmoil during the banking crisis." Given that Commerzbank has once again regained stability and profitability, it's only fitting that the federal government starts shedding its shares in the now profitable and rehabilitated institution.
Eva Grunwald, CEO of the Financial Agency, pointed out that the bank has been on an upward economic trajectory since 2021. As a result, the federal government's move to decrement its shareholding and eventually exit Commerzbank is well-justified. The divestment of the relevant share bundle will follow a transparent and market-oriented approach, as detailed in the statement. Further decisions regarding additional sales will be made by the interministerial steering committee at the appropriate time.
Commerzbank struggled financially during the 2008 financial market meltdown and required a total of 18.2 billion euros in financial aid from the Financial Market Stabilization Fund (FMS) in 2008 and 2009 to preserve market stability. So far, approximately 13.15 billion euros have been repaid. At present, the federal government retains a 16.49% stake in Commerzbank through the FMS.
The German Federal Financial Supervisory Authority disclosed that the federal administration aims to reduce its ownership in Commerzbank, which is a prominent bank based in Germany. Given the bank's financial recovery and profitability, the plan to divest shares and eventually exit Commerzbank is justified, as noted by Eva Grunwald, the CEO of the Financial Agency.
