There seems to a curious connection that I would like to point out.
The reason behind it is open to speculation, which I don’t generally write about.
The connection is between Deutsche Bank and Donald Trump. Deutsche for the last decade or so has been one of Trump’s main lenders.
Deutsche holds more than $350M on mortgages to Trump’s trophy properties: Miami’s Doral National golf course, Chicago’s Trump International Hotel and Tower, and the newly opened Trump International Hotel in Washington, DC, a few blocks from the White House.
Deutsche and Trump have been doing these deals since US banks shied away from Trump since his earlier bankruptcies in the early part of this century.
In a growing sign that all is not well with European banks and German banks in particular, Commerzbank on Thursday said it would cut nearly 10,000 jobs or more than a 20 percent of its workforce and stop paying dividends as it goes through restructuring.
Germany’s second biggest lender said in a statement it expected restructuring costs of $1.2 billion as it combines business segments and cuts costs to offset the drag from low loan demand and negative European Central Bank interest rates and as it shifts to digital banking.
The news come on the heels of German Chancellor Angela Merkel saying that the government will not offer a bail out to Deutsche.
The Commerzbank revamp will come at a heavy cost for employees as Commerzbank slashes 9,600 of its 45,000 full-time positions, a more drastic reduction than at Deutsche, which is cutting about 10 percent of staff but has suggested deeper cost cutting may be needed.