Economy
In reply to the discussion: STOCK MARKET WATCH -- Thursday, 19 January 2012 [View all]Ghost Dog
(16,881 posts)Commerzbank AG (CBK), Germanys second- largest lender, said its more than halfway toward its goal of plugging a capital gap without using government aid. The shares surged.
The bank can strengthen capital by 6.3 billion euros ($8.1 billion) by raising funds and reducing risk-weighted assets by June 30, Frankfurt-based Commerzbank said today. Thats more than the 5.3 billion-euro shortfall the European Banking Authority told the lender to plug. The bank said it had fulfilled 57 percent of that requirement by the end of 2011...
... We stand by our word: we do not intend to make use of additional public funds, Eric Strutz, the companys chief financial officer, said in the banks statement. With the approved set of measures, the bank is showing that its able to meet the capital requirements of the EBA, relying on its own strength even in a difficult environment.
The stock jumped as much as 15 percent and was 13 percent higher at 1.60 euros at 11:05 a.m. local time, valuing the company at about 8.2 billion euros. It was the biggest increase in Germanys benchmark DAX Index. (DAX)
/... http://www.bloomberg.com/news/2012-01-19/commerzbank-halfway-to-plugging-capital-hole-won-t-need-aid-shares-soar.html