Germany Denies Plans for New Banking Law

MILAN (Reuters) – On Sunday, Germany's finance ministry denied rumors that the country was contemplating a law to protect domestic banks from cross-border takeovers. This comes as Italy's UniCredit seeks a merger with Germany's Commerzbank (ETR:CBKG).

Italian newspaper La Repubblica reported that a source close to the matter indicated that the German government was considering legislation to prevent foreign lenders from acquiring 100% of any bank and enforcing that it must remain listed in Germany.

A spokesperson for the German finance ministry stated, "We deny that."

Berlin expressed surprise at UniCredit's move to acquire a significant stake in state-backed Commerzbank, which the Italian bank claims could lead to a merger.