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The past few years have been torture for Commerzbank shareholders - as can be seen from the bank's share price.

Since 2007 the paper has lost more than 90 percent.

The second-largest listed bank in Germany also flew out of the leading index Dax two and a half years ago.

To the chagrin of the taxpayers, because the federal government still has a 15.6 percent stake in Commerzbank.

The misery should now be over.

The new CEO Manfred Knof has big plans.

Knof, so much is known, on the one hand wants to cut around 10,000 jobs worldwide.

Of the around 1000 branches, only 450 should remain.

In Germany, 340 out of 790 branches are to be closed.

Around a third of all employees have to fear for their job.

The Commerzbank boss expects savings of 1.4 billion euros, which would correspond to about a fifth of today's costs, it said in a statement from the bank this week.

The bank's return on equity is expected to rise from 2.3 to six and a half to seven percent.

Knof wants to be extremely fast with his job cuts - by German standards.

The bank should be through with the job cuts by 2024.

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However, the press release does not state that the bank's board of directors under Knof's leadership has even more extensive ideas.

According to information from WELT AM SONNTAG, the top managers of the bank are discussing a program for the second half of the planning period that should also make shareholders happy.

The plan endangers the stability of the bank

The bank wanted to spend several billion euros on a dividend program or share buybacks with the money saved and the equity released from the reduction of unprofitable business relationships, this newspaper learned from corporate circles.

The project should cause dissatisfaction among at least two parties.

The employees of Commerzbank are already on the pinnacle because the Board of Management is planning such extensive staff cuts in such a short time.

The service union Ver.di criticizes that the “massive” job cuts at Commerzbank are “not acceptable in this short period”.

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The plan endangers the stability of the bank, said Stefan Wittmann, the trade union secretary responsible for Commerzbank at Ver.di.

"Above all, we are appalled that the employees have not received any information about these drastic and short-term measures."

The union criticized that the planned downsizing caused uncertainty among the employees because the company management had not yet made any statements about how the employees were dealt with.

“We expect the board of directors to take responsibility for the workforce and to inform the works council immediately and comprehensively,” said Wittmann.

He therefore calls for socially acceptable commitments and clear offers for the old-age pension instruments that have proven themselves in the bank.

Ver.di rejects redundancies for operational reasons.

Federal government sends a short message

In the coming years, however, those to whom Commerzbank has touted itself as the best partner will not be as enthusiastic: the customers.

Corporate customers in particular with loans to which the financial institution does not earn any money and to whom there is hardly any connection, must, according to reports, expect that their business relationships will no longer exist.

Because that is what Commerzbank understands by reducing risk-weighted assets.

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The bank itself does not want to comment on the information.

The federal government, as a major shareholder, sends a short message on request: “It is the task of the board of directors to develop the strategic direction of the bank and to inform the supervisory board.

The federal government respects the responsibilities of the organs. ”That doesn't change the fact that the federal government in particular would benefit from dividends and share buyback programs.

This text is from WELT AM SONNTAG.

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Source: Welt am Sonntag