The Federal Financial Supervisory Authority (BAFin) launched an initial investigation into possible market manipulation of the Commerzbank share on Wednesday, October 9, 2002.
There are suspicions that an external party is attempting to sabotage the share price by spreading negative rumors about the bank. The BAFin is thus reviewing the shareÂ's recent price development. The BAFin has explicitly stated that it has no suspicions against Commerzbank itself.
The BAFin published the following press release in the afternoon:
The BAFin - Federal Financial Supervisory Authority - on the situation in the German banking sector:
The BAFin monitors and analyses the current earnings and risk situation of German banks as a matter of routine. Regular contact is maintained with the major German banks in particular. In light of the general situation in the capital market the BAFin has increased its supervisory activities, placing even more emphasis than usual on being thoroughly informed about the forthcoming annual financial statements.
It becomes obvious that German institutions, like their international competitors, suffer from the decline in exchange prices. On the whole, the results achieved in recent years are unlikely to be matched.
'The situation in the German banking sector is far from being critical. There is no reason whatsoever to assume that by the end of this year, German banks might fail to meet the international capital adequacy requirements. The current exaggeration in the market, especially the prevailing doubt about the liquidity of German institutions, is entirely beyond my comprehension', says Vice President Caspari. German banks handle the issue of liquidity in a professional manner, there is no reason for regulatory concern.
Anybody who wilfully circulates incorrect rumours is liable to investigations into suspected market manipulation.
(source: Commerzbank)
