Commentary: German Banks Still Don't Get It

Dresdner Bank and Commerzbank may be Germany's third- and fourth-largest banks by market capitalization. But neither has the financial heft to compete in investment banking or asset management on a European, let alone global, basis. And each needs to cut costs dramatically to boost scant returns on equity, which were 10% and 9.4%, respectively, last year. That's not bad for Germany. But it is well below the European average of 19%.

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