German bank merger falls apart

The merger between Germany's largest and third largest banks, which would have cost 16,000 jobs worldwide (see Labour Research April 2000), has collapsed. The Dresdner Bank, the smaller of the two partners, pulled out, citing unreconcilable differences in the treatment of its large UK investment banking operation. The president of Dresdner, Berhard Walter, was forced to resign but the bank could now be vulnerable to a further takeover. Gerhard Renner from the union DAG, which has substantial membership in both banks, said the failure of the merger was "no reason for rejoicing" since both Deutsche and Dresdner were in any case aiming to cut branch networks and jobs.