Commerzbank partly nationalized as Germany takes stake

By @ibtimes on

Germany injected 10 billion euros and took a 25 percent stake in Commerzbank Thursday in a move to aid Germany's second biggest lender.

The move will allow Commerzbank to buy Dresdner Bank, after more than a month of negotiations with Allianz (controller of Dresdner) the Financial Times reported today. The bank is now partially nationalized.

This determination shows how the current global economic crisis continues to weaken the worth of large banks' credit despite government efforts to restore confidence in the market.

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