Six years after UBS' massive strategic shift, the Swiss bank is an example for rivals still struggling to free themselves of legacy troubles – like Deutsche Bank, which toyed with a Swiss merger plan.
Deutsche Bank's management under CEO Christian Sewing considered a merger with UBS, German daily «Handelsblatt» (behind paywall, in German) wrote on Wednesday. Neither bank commented on the report.
The newspaper reported that several possible merger scenarios were deliberated, and the two most promising on paper appeared to be German lender Commerzbank and Zurich-based wealth manager UBS.
Immense restructuring costs as well as a bloodletting of staff spoke were viewed as drawbacks to a Commerzbank deal, the paper reported.
Political Resistance
By contrast, option UBS looked more complementary: the Swiss wealth manager's focus on the wealthy is a better fit to Deutsche's historical strength in investment banking.
To be sure, Deutsche Bank would be the junior to UBS' more weighty role in any deal, the newspaper concluded – the difference in the two banks' operative strength and capital is dramatically in favor of the Swiss bank.
«The German political establishment would have to accept this role first,» the newspaper said – alluding to Deutsche's steep fall from national champion. The Frankfurt lender's bosses and board apparently came to the same conclusion: the UBS merger plan was quickly scrapped.
