ollo/iStock Unreleased via Getty Images
- The German government plans to reduce its holdings in Commerzbank (OTCPK:CRZBF) (OTCPK:CRZBY), the bank it had helped bail out during the 2008-’09 financial crisis to stabilize financial markets, the German finance agency said on Tuesday.
- The investment helped protect financial market stability during the banking crisis more than a decade ago. “Commerzbank is a stable and profitable institution again,” said Florian Toncar, Parliamentary State Secretary at the Federal Ministry of Finance and chairman of the responsible interministerial steering committee. “Consequently, the Federal government will sell its shares in the successfully stabilized institute step by step.”
- Commerzbank (OTCPK:CRZBY) received capital assistance totaling €18.20B from the Financial Market Stabilisation Fund in 2008 and 2009. About €13.15B has been repaid to date. The federal government still holds a 16.49% stake in the bank through the FMS, it said.
- Commerzbank (OTCPK:CRZBY) stock fell 5.2% in Tuesday midday trading in the U.S.
