Sunday, October 06, 2002

Commerzbank in Trouble

The rumors about Germany's 3rd largest bank are all anyone is talking about in New York. Here's three paragraphs from tomorrow's Financial Times that give one pause:

On Friday, the Financial Times unearthed a seven-line email from Maria Anastase, of Merrill Lynch's corporate credit department, to credit rating group Standard & Poor's voicing concerns over the financial health of Commerzbank.

She wrote: "Again the market is flooded with rumours that Commerzbank, amongst all its other problems, has sustained large trading losses in credit derivatives".

Commerzbank said that while it may have grounds to take legal action against Merrill Lynch, it was not considering doing so.

You can read Maria Anastase's email by clicking here. You can read the entire Financial Times story by clicking here.