Commerzbank to Speed Up Restructure Due To Crisis, Tougher Capital Rules - WSJ.com
Germany's second-largest lender will transfer its entire commercial real
estate and ship financing business--a total volume of around EUR172
billion ($215 billion). The portfolios will go to a restructuring unit
aimed at winding down** non-core assets, such as the public-finance
business of the bank's Eurohypo unit.** [and MEFO Covered Bonds used to
make F'ing stupid bets] ...
The bank, in which the German government holds a 25% stake,
cited uncertain markets, the heightened sovereign debt crisis and
increasing capital and liquidity requirements, especially for long-term
financing, under the future Basel III regime for the decision, which the
management board took after an annual strategy review Tuesday. It also
pointed to "strong cyclical fluctuations, which are to be expected in
the results in the future."
Also don't see: Eurohypo AG and comdirect bank AG are fully integrated into the internal processes and
risk management of Commerzbank AG as the ultimate parent company of the banking group.
This applies in particular to the methods used, risk management, monitoring of operations,
management and reporting. The opportunity granted under the waiver rule pursuant to sec-
tion 2a.1 KWG was used to exempt the two companies at single-entity level from the above
requirements.
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