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95-546: In 1998 the City of Frankfurt approved a new high-rise development plan which specifies where new skyscrapers are allowed to be built in the city. One of the approved locations was the estate owned by Commerzbank and Rheinhyp at Taunustor, right at the heart of Frankfurt's financial district. The development plan envisioned a 135 m (443 ft) high-rise building for the property, named Kaiserkarree. In 2000 architecture firm Gruber + Kleine-Kraneburg won an architecture competition for

190-472: A vicious cycle . The government and the banks had two unacceptable alternatives. If they stopped inflation, there would be immediate bankruptcies, unemployment, strikes, hunger, violence, collapse of civil order, insurrection and possibly even revolution. If they continued the inflation, they would default on their foreign debt. However, attempting to avoid both unemployment and insolvency ultimately failed when Germany had both. The hyperinflation episode in

285-404: A disastrous foray into investment banking in the first half decade of the 2000s and eventually shut down its Commerzbank Securities investment banking unit run by Mehmet Dalman and Roman Schmidt after Chairman Klaus-Peter Müller labelled it a "problem child" and a review by consulting firm Mercer Oliver Wyman which concluded that Commerzbank Securities lacked a viable business model. What

380-416: A financial conglomerate with a building society and insurance, ultimately did not materialize. The bank managed to increase its customer base significantly. With fewer branches, it generated more profit. At the same time, innovative new services were created, such as cash withdrawal at gas stations and online banking for corporate customers. The public critically received the outsourcing of employees to

475-446: A joint mortgage bank. Eurohypo commenced its business operations in the second half of 2002. Following the dot-com bubble 's collapse and subsequent turmoil in financial markets, Commerzbank had to make significant write-downs on its stake as early as 2003. For a time, the major shareholders even waived their dividends to improve the financing of Eurohypo. Eurohypo distanced itself from Commerzbank. An initial public offering (IPO)

570-418: A means to stabilize German currency. In August 1923, an economist, Karl Helfferich , proposed a plan to issue a new currency, the "Roggenmark" ("rye mark"), to be backed by mortgage bonds indexed to the market price of rye grain. The plan was rejected because of the greatly fluctuating price of rye in paper marks. Agriculture Minister Hans Luther proposed a plan that substituted gold for rye and led to

665-550: A milestone in reorganizing the German financial industry. Allianz valued the purchase price at around 9.8 billion euros, assuming loss risks of up to 975 million euros. In the first step, Commerzbank was to acquire about 60 percent of Dresdner Bank, with plans to buy the remaining shares later. This was the largest merger of two financial institutions in years. Commerzbank and Dresdner Bank both expected to realize millions in synergies. Although Allianz initially rejected renegotiations,

760-510: A nearly 17-fold increase. After Germany failed for the thirty-fourth time in thirty-six months to pay an instalment of in-kind reparations of coal, in January 1923 French and Belgian troops occupied the Ruhr valley , Germany's main industrial region. 900 million gold marks of reparations were ultimately secured this way. The German government's response was to order a policy of passive resistance in

855-489: A preliminary warning of the extreme postwar inflation. This strategy failed as Germany lost the war, which left the new Weimar Republic saddled with massive war debts that it could not afford: the national debt stood at 156 billion marks in 1918. The debt problem was exacerbated by printing money without any economic resources to back it. John Maynard Keynes characterised the inflationary policies of various wartime governments in his 1919 book The Economic Consequences of

950-708: A principle, "a mark is worth a mark", which had been recognized, the nominal value principle. The law was challenged in the Supreme Court of the German Reich ( Reichsgericht ), but its 5th Senate ruled, on 4 November 1925, that the law was constitutional, even according to the Bill of Rights and Duties of Germans (Articles 109, 134, 152 and 153 of the Constitution). The case set a precedent for judicial review in German jurisprudence. Historians and economists differ over

1045-402: A radical austerity program, which included limiting credit outside Germany and Poland. By selling Cominvest to Allianz, Commerzbank no longer owned its own fund company. Additionally, Eurohypo was to be sold or split up. Write-downs on government bonds and real estate loans continuously led to losses, making the company no longer viable. Therefore, in 2012, the bank ultimately decided on

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1140-450: A resumption of effective taxation in a still-devastated economy triggered a wave of corporate bankruptcies . One of the important issues of the stabilization of a hyperinflation is the revaluation . The term normally refers to the raising of the exchange rate of one national currency against other currencies. As well, it can mean revalorization , the restoration of the value of a currency depreciated by inflation. The German government had

1235-445: A return of hyperinflation and, after 1930, Germany protested that reparations payments were deflationary . Inflation also enabled the German government to pay off its substantial domestic debts, particularly war debts, in devalued marks. One point on which historians tend to agree is that the printing of cash by the German government to make payments to striking workers in the Ruhr, who were refusing to make reparations deliveries to

1330-726: A signal for consolidation in the European financial industry. Two years later, a tri-national cooperation was established between the German Commerzbank, the British National Westminster Bank , and the French Société Générale . In 1994, Commerzbank founded Comdirect Bank , becoming the first major German bank to enter the emerging direct banking market. 1999, Commerzbank also sold computers to facilitate customers' access to online banking. The branch network

1425-884: A single payment of 1 billion gold marks was paid (roughly 1.4% of Germany's nominal 1925 GNP) , until the agreement of the Dawes plan in late 1924, only relatively small cash payments were made by Germany, though partial in-kind payments continued. For example, of the 300 million gold marks due under a variable annuity in November 1921, only 13 million was paid, and of the roughly 3 billion gold marks total due under payments in 1922, only 435 million were paid in cash. Germany's leadership claimed that, with its gold depleted, inflation resulted during 1921–23 due to attempts to buy foreign currency with German currency in an effort to make cash payments as reparations. This would be equivalent to selling German currency in exchange for payment in foreign currency, but

1520-616: A temporary employment agency. After acquiring stakes in numerous foreign banks and insurance companies during the 1990s, Commerzbank bought around 30 percent of the Korea Exchange Bank in 1998 to more actively participate in developing emerging Asian markets. Despite the continent's financial market problems, the bank saw opportunities for above-average growth. Alongside international expansion, Commerzbank focused on strengthening its European presence, mainly through alliances with other large banks. Commerzbank suffered reversals in

1615-476: A third of their conversion value in Rentenmarks. On 30 August 1924, a monetary law permitted the exchange of a 1-trillion paper mark note to a new Reichsmark , worth the same as a Rentenmark. By 1924 one dollar was equivalent to 4.2 Rentenmark. Eventually, some debts were reinstated to compensate creditors partially for the catastrophic reduction in the value of debts that had been quoted in paper marks before

1710-565: A wind-down, accepting further losses in the accelerated reduction of its portfolio. The decade following the takeover and integration of Dresdner Bank brought further profound changes for Commerzbank caused by the digitalization of all areas of public life. In response, Martin Zielke , who became CEO in 2016, announced a radical restructuring. Commerzbank mainly aimed to strengthen its private and corporate customer business in Germany further. The focus

1805-562: The First World War due to the way in which the German government funded its war effort through borrowing, with debts of 156 billion marks by 1918. This national debt was substantially increased by 50 billion marks of reparations payable in cash and in-kind (e.g., with coal and timber) under the May 1921 London Schedule of Payments agreed after the Versailles treaty . This inflation continued into

1900-603: The Great Depression , seeing the two separate events as one big economic crisis that encompassed both rapidly rising prices and mass unemployment. The hyperinflated, worthless marks became widely collected abroad. The Los Angeles Times estimated in 1924 that more of the decommissioned notes were spread about the US than existed in Germany. Firms responded to the crisis by focusing on those elements of their information systems they identified as essential to continuing operations. In

1995-663: The London Stock Exchange . In 1952, it opened its representation in Rio de Janeiro. Further locations followed, including Madrid (1953), Amsterdam (1955), Beirut (1957), Johannesburg (1958), Tokyo (1961), and New York City (1967). The 1970s and 1980s were characterized by international cooperation and global expansion. Commerzbank participated in numerous new ventures and equity investments abroad. In 1970, it collaborated with Crédit Lyonnais , which other banks from various European countries joined. In this context, Commerzbank introduced

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2090-671: The Treaty of Versailles , which included an agreement to pay substantial reparations to the Allied powers both in hard cash and in in-kind shipments of goods such as coal and timber. By then, 48 paper marks were required to buy a US dollar. In May 1921 the amount to be paid by the Central Powers as a whole was fixed at 132 billion gold marks under the London Schedule of payments which set quarterly deadlines for payments. Of this, 50 billion gold marks

2185-464: The ' Aryanization ' of companies by brokering them to other interested parties to maintain business relationships. There may have been around 1,000 such mediations. From November 25, 1941, all banks were obliged to report the assets of emigrated, deported, and deceased Jews to the German Reich. In 1940, the bank changed its name to Commerzbank Aktiengesellschaft. During World War II , it opened branches and subsidiaries in occupied countries and took over

2280-408: The 'Quatre Vents' logo in 1972, which it used until mid-2010. In the 1970s, Eurocheques were introduced. Customers could now withdraw cash in 30 European countries using a cheque card. The Eurocheque card with a magnetic strip for ATMs was introduced in 1981. In 1970, Commerzbank founded the non-profit Commerzbank Foundation. As an independent foundation of civil law, it aims to promote and support

2375-426: The 'small loan for everyone' in 1959. Additionally, Commerzbank entered the private customer home financing market in 1968. In 1969, Commerzbank recorded more than one million private customers for the first time. The 1950s and 1960s also marked the beginning of the financial sector's internationalization. Commerzbank was particularly active in this area. Its shares were the first German financial institution listed on

2470-481: The Allies, contributed to hyperinflation. The occupation of the Ruhr also caused German output to fall. Regardless of the reason for the declining value of the German currency, the decline caused prices of goods to rise rapidly, increasing the cost of operating the German government, which could not be financed by raising taxes because those taxes would be payable in the ever-falling German currency. The resulting deficit

2565-577: The Commerz- und Privatbank chief executive Friedrich Reinhart and chairman Franz Heinrich Witthoefft were among the signatories of the Industrielleneingabe petition of business leaders that advised president Paul von Hindenburg to appoint Adolf Hitler as chancellor. After the seizure of power, Jewish members of the supervisory board and executive board were ousted. From 1938, the bank no longer employed Jewish staff. The bank also participated in

2660-559: The Dutch bank Hugo Kaufmann. This expansion served economic interests. Shortly before the end of the war, the bank moved its central administration from Berlin to Hamburg for security reasons. With the end of World War II in 1945 and the division of Germany into four occupation zones, the Commerzbank lost its branches and subsidiaries in the Soviet occupation zone and East Berlin. Nearly 45 percent of

2755-494: The German brand Comdirect Bank and the Polish subsidiary mBank . As one of the oldest banks in Germany, Commerzbank plays a significant role in the country's economy. It is the largest financier of German foreign trade, with strong ties to the German 'Mittelstand.' In addition, it maintains a presence in all major economic and financial centers worldwide. Since its establishment in 1870, Commerzbank has undergone several changes. It

2850-476: The Peace as follows: The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance. The value of the German currency continued to fall in the immediate aftermath of the war. By late 1919, the German government had signed

2945-601: The Reich government merged the Commerz- und Privat-Bank with the Barmer Bankverein  [ de ] and partially nationalized it to stabilize the institution. The bank was 70 percent controlled by the Reich and the state-owned Golddiskontbank. Its shares were sold back to private shareholders in 1937. During the Nazi dictatorship , the bank adapted to the political imperative without pursuing excessive expansion. In November 1932,

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3040-573: The Ruhr, with workers being told to do nothing which helped the French and Belgians in any way. While this policy, in practice, amounted to a general strike to protest the occupation, the striking workers still had to be given financial support. The government paid these workers by printing more and more banknotes, with Germany soon being swamped with paper money, exacerbating the hyperinflation even further. A loaf of bread in Berlin that cost around 160 marks at

3135-508: The Weimar Republic in the early 1920s was not the first or even the most severe instance of inflation in history. However, it has been the subject of the most scholarly economic analysis and debate. The hyperinflation drew significant interest, as many of the dramatic and unusual economic behaviors now associated with hyperinflation were first documented systematically: exponential increases in prices and interest rates, redenomination of

3230-696: The acquisition of Schmidt Bank  [ de ] based in Hof, gaining 70 branches and 29 other locations in Bavaria, Thuringia, and Saxony, increasing its private customer base by 360,000 to 4.3 million. The transaction was seen as rejecting a merger with the Bavarian HypoVereinsbank . In addition to digital activities and growth in the domestic market, especially among corporate clients, Commerzbank explored various acquisitions in Central and Eastern Europe. With

3325-616: The bank has undergone considerable transformation, returning to profitability, partly through substantial cost reductions and the evolution of its business model. On February 26, 1870, Theodor Wille  [ de ] , a merchant successful in South American trade, together with other trading houses and private bankers in Hamburg , founded the Commerz- und Diskonto-Bank. The goal was to provide financial resources to Hamburg's trade and facilitate international commerce. They also established

3420-458: The beginning the focus was on adjusting sales and procurement arrangements, modifications to financial reporting, and the use of more nonmonetary information in internal reporting. With the continuous acceleration of inflation, human resources were redeployed to the most critical corporate functions, in particular those involved in the remuneration of labor. There is evidence that some parts of corporate accounting systems fell into disrepair, but there

3515-622: The board in 1990, led the department responsible for preparing business in the new federal states. The bank's engagement in the East developed into a crucial advantage. Alongside expansion in the domestic market, Commerzbank continued its internationalization, such as by opening an office in Bangkok. Later, Commerzbank became the first international financial institution to open a branch in South Africa. Commerzbank established its management consultancy to meet

3610-626: The branches there were closed and expropriated without compensation. Large banks were dismantled in the Western occupation zones, and their business activities were limited to one occupation zone. In 1947, by order of the American military government, Commerzbank was split into nine regional successor institutions. Normal business operations were practically impossible as trust in the Reichsmark declined. The German currency reform 1948  [ de ] and

3705-425: The catastrophic fall in the value of the mark had effectively wiped out debts owed, some debts (e.g. mortgages) were revalued so that the lenders could recoup some of their money. Hyperinflation caused considerable internal political instability in the country. Historians and economists are divided on the causes of this hyperinflation, particularly the extent to which it was caused by reparations payments. To pay for

3800-422: The causes of the German hyperinflation, particularly on the subject of whether it was caused by reparations payments. The Treaty of Versailles had imposed an undefined debt on Germany, which the London Schedule of Payments agreed in May 1921 had determined to be essentially 50 billion marks in A and B bonds payable partly in-kind with goods like coal and timber, and partly in gold and hard-cash. From June 1921, when

3895-421: The choice of a revaluation law to finish the hyperinflation quickly or of allowing sprawling and the political and violent disturbances on the streets. The government argued in detail that the interests of creditors and debtors had to be fair and balanced. Neither the living standard price index nor the share price index was judged as relevant. The calculation of the conversion relation was considerably judged to

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3990-495: The complete takeover of Eurohypo after agreeing on terms for acquiring shares from Deutsche Bank and Dresdner Bank. This step elevated Commerzbank to the second-largest bank in Germany. Observers described the surprising acquisition as a strategic coup, especially in competition with domestic rivals. To finance the acquisition, the bank conducted a capital increase. Even after the takeover, Eurohypo remained largely independent. The real estate business became an essential pillar of

4085-455: The currency , consumer flight from cash to hard assets and the rapid expansion of industries that produced those assets. Since the hyperinflation, German monetary policy has retained a central concern with the maintenance of a sound currency, a concern that had an effect on the European sovereign debt crisis . According to one study, many Germans conflate hyperinflation in the Weimar Republic with

4180-419: The currency and budgetary reform that could have addressed hyperinflation was seen as advantageous. Whilst ruinous to the economy and politically destabilising, hyperinflation had advantageous aspects for the German government as, although the war reparations were not listed in paper currency, domestic debts owed from the war were listed, meaning that inflation greatly reduced this debt relative to revenues. In

4275-476: The demand for professional support. In the early 1990s, Commerzbank significantly increased its earnings. However, the stock price remained comparatively low, leading to cost reductions and job cuts. This further improved the profit situation. Commerzbank then promised its shareholders a higher dividend. In 1991, a cross-border collaboration with the French Crédit Lyonnais was announced, seen as

4370-439: The different interests of all parties into a familiar concept. A critical factor was also the conflict over the valuation of Commerzbank and Dresdner Bank. Additionally, a cross-border merger was considered more sensible. Both banks emphasized their independence. In the context of the global economic and financial crisis, there were renewed speculations in 2008 about the merger of Commerzbank with other banks. Initially, there

4465-405: The dollar index as well as to the wholesale price index . In principle, the German government followed the line of market-oriented reasoning that the dollar index and the wholesale price index would roughly indicate the true price level in general over the period of high inflation and hyperinflation. In addition, the revaluation was bound on the exchange rate mark and United States dollar to obtain

4560-503: The end of 1922 cost 200,000,000,000 or 200 billion (2×10 ) marks by late 1923. By November 1923, one US dollar was worth 4,210,500,000,000 or 4.2 trillion (4.2105×10 ) German marks. German monetary economics was at that time heavily influenced by Chartalism and the German Historical School , which conditioned the way the hyperinflation was analysed. The hyperinflation crisis led prominent economists and politicians to seek

4655-531: The end of 2008, Commerzbank utilized the Special Fund for Financial Market Stabilization ( SoFFin ). After the German federal government and the European Commission agreed on the assistance details, Commerzbank received a silent participation of 8.2 billion euros. Initially, Commerzbank emphasized that the state's participation was necessary due to the devaluation of banks and not specifically because of

4750-416: The end of the same year Tishman Speyer and Commerz Real bought the property and said that they would build the tower unchanged from the previous design. It was agreed upon with the City of Frankfurt that a part of the tower would be used for apartments. The demolition of the existing buildings on the property was scheduled to start in spring 2008 but was delayed because Tishman Speyer surprisingly announced that

4845-606: The first half of 1921. Because the Western Front of the war had been mostly fought in France and Belgium , Germany came out of the war with most of its industrial infrastructure intact, leaving it in a better place economically than neighbouring France and Belgium. The first payment of one billion gold marks was made when it came due in June 1921. At this point, customs posts in the west of Germany were occupied by Allied officials, so that

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4940-461: The first half of 1922, the mark stabilized at about 320 marks per dollar. International conferences were held. One, in June 1922, was organized by US investment banker J. P. Morgan, Jr. The meetings produced no workable solution, and inflation erupted into hyperinflation, the mark falling to 7,400 marks per US dollar by December 1922. The cost-of-living index was 41 in June 1922 and 685 in December,

5035-522: The following years, the economic situation improved. In 1927, the bank opened a foreign representation in New York City and continued its expansion. In 1929, it merged with Mitteldeutsche Creditbank from Frankfurt am Main to extend its branch network in Hesse and Thuringia. In 1931, several banks, including the Commerz- und Privat-Bank, faced difficulties during the currency and banking crisis. In February 1932,

5130-494: The general meeting approved the measure. As a result of the financial crisis and partial nationalization, the bank lost public trust. At the end of 2012, the bank launched an advertising campaign in which it openly admitted past mistakes and positioned itself as a fair and competent financial service provider. This was met with criticism in the industry. The Greek debt crisis and its global impact unexpectedly heavily affected Commerzbank's profitability. The bank responded with

5225-468: The group. As early as the early 2000s, there were rumors about a merger of Commerzbank with another major European financial institution. After the failed merger of Deutsche Bank with Dresdner Bank, Commerzbank was considered the most likely candidate for acquiring Dresdner Bank. Such discussions started around June 2000. The possibilities discussed included the formation of a large financial conglomerate, possibly involving Allianz. Trade unions viewed

5320-449: The hyperinflation. A decree of 1925 reinstated some mortgages at 25% of face value in the new currency, effectively 25,000,000,000 times their value in the old paper marks, if they had been held for at least five years. Similarly, some government bonds were reinstated at 2.5% of face value, to be paid after reparations were paid. Mortgage debt was reinstated at much higher rates than government bonds were. The reinstatement of some debts and

5415-880: The introduction of the Deutsche Mark marked a new beginning for Commerzbank. In 1949, the Allies and the Berlin Magistrate resumed banking operations in West Berlin. In 1952, the West German regional groups merged into three successor institutions. This led to the formation of the Commerz- und Disconto-Bank in Hamburg, the Bankverein Westdeutschland in Düsseldorf, and the Commerz- und Credit-Bank in Frankfurt am Main. In 1956,

5510-517: The issuance of the Rentenmark ("mortgage mark"), backed by bonds indexed to the market price of gold. The gold bonds were indexed at the rate of 2,790 gold marks per kilogram of gold, the same as the pre-war gold marks . Rentenmarks were not redeemable in gold but only indexed to the gold bonds. The plan was adopted in monetary reform decrees on 13–15 October 1923. A new bank, the Rentenbank ,

5605-459: The issue was strictly controlled to conform to current commercial and government transactions. The Rentenbank refused credit to the government and to speculators who were not able to borrow Rentenmarks, because Rentenmarks were not legal tender. On 16 November 1923, the new Rentenmark was introduced to replace the worthless paper marks issued by the Reichsbank. Twelve zeros were cut from prices, and

5700-469: The large costs of the First World War , Germany suspended the gold standard (the convertibility of its currency to gold) when the war broke out in 1914. Unlike France , which imposed its first income tax to pay for the war, German Emperor Wilhelm II and the Reichstag decided unanimously to fund the war entirely by borrowing . The government believed that it would be able to pay off the debt by winning

5795-471: The leadership of Walter Seipp. In 1990, Commerzbank moved its registered office from Düsseldorf to Frankfurt am Main. The German reunification allowed Commerzbank to tap into new target groups; in the first three months after the Economic, Monetary and Social Union of Germany  [ de ] , around 80,000 customers and thousands of corporate clients chose the bank. Klaus-Peter Müller , appointed to

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5890-743: The legal situation allowed the merger of these institutions into Commerzbank Aktiengesellschaft. This merger was completed in October 1958, effective from July 1, 1958, with the Düsseldorf Commerzbank-Bankverein acquiring the two sister institutions. The newly founded banking institution was registered under its traditional name in the Düsseldorf commercial register on November 4, 1958. From 1958, banks were allowed to open branches without official review, which Commerzbank utilized. By 1962, it had surpassed its pre-war level with 372 branches. Commerzbank, Deutsche Bank , and Dresdner Bank introduced

5985-599: The majority takeover of Poland's BRE Bank (today's mBank) in 2003, it significantly expanded its regional engagement. Moreover, Commerzbank grew in smaller markets, such as in Romania. Revenues from Central and Eastern Europe were expected to grow significantly. Furthermore, Commerzbank relocated back-office activities, such as IT systems, to Poland and the Czech Republic. In 2001, the three major Frankfurt banks, Deutsche Bank, Dresdner Bank, and Commerzbank, decided to establish

6080-476: The merger of Commerzbank and Dresdner Bank critically in light of potential job cuts, as did the investment company Cobra, which held stakes in both financial institutions. On the other hand, Generali , the Italian finance and insurance conglomerate and another major shareholder of Commerzbank, explicitly expressed positive views on the plans. Ultimately, the plans failed because it was impossible to bring together

6175-427: The office tower (rumoured to be Clifford Chance ) cancelled the contract negotiations. Tishman Speyer then announced that the towers, now called Taunusturm, would not be built in the near future. In January 2011 demolition works continued and Tishman Speyer officially presented the final design for the towers, again from Gruber + Kleine-Kraneburg: 170 m (560 ft) and 60 m (200 ft). The construction of

6270-448: The parties agreed to reduce the purchase price to 5.5 billion euros. It was also decided to move the takeover from the second half of 2009 to the beginning of the year. Analysts and investors criticized the merger of Commerzbank and Dresdner Bank amid the global economic and financial crisis. The transaction significantly affected the stock prices of all involved companies. Due to the credit risks of Dresdner Bank that became apparent at

6365-559: The planned tower, but the project slowed down after the Dot-com bubble burst in 2000 and the September 11 attacks in 2001. Meanwhile the Rheinhyp became part of real estate bank Eurohypo and moved to Eschborn , therefore Commerzbank took over responsibility for the property. In 2007 Commerzbank announced that it wanted to sell the property because there was no need to use it for own purposes. At

6460-411: The plans for the tower had changed: Instead of one broad tower they changed the design to two towers, one 160 m (520 ft) and one 60 m (200 ft), and therefore a clear parting between office use and residential use. Tishman Speyer submitted a building application in 2010 and started the demolition process but shortly after the demolition was once again stopped because the main tenant for

6555-586: The post-war period, particularly when in August 1921 the German central bank began buying hard cash with paper currency at any price, which they claimed was to pay reparations in hard cash, though little in the way of cash reparations payments were made until 1924. The currency stabilised in early 1922, but then hyperinflation took off: the exchange value of the mark fell from 320 marks per dollar in mid 1922 to 7,400 marks per US dollar by December 1922. This hyperinflation continued into 1923, and by November 1923, one US dollar

6650-585: The prices quoted in the new currency remained stable. When the president of the Reichsbank, Rudolf Havenstein, died on 20 November 1923, Schacht was appointed to replace him. By 30 November 1923, there were 500,000,000 Rentenmarks in circulation, which increased to 1,000,000,000 by January 1, 1924, and to 1,800,000,000 Rentenmarks by July 1924. Meanwhile, the old paper Marks continued in circulation. The total paper marks increased to 1.2 sextillion (1,200,000,000,000,000,000,000) in July 1924 and continued to fall in value to

6745-422: The resulting increase in the supply of German marks on the market caused the German mark to fall rapidly in value. British and French experts claimed that the German leadership were purposefully stoking inflation as a way of avoiding paying reparations, as well as a way of avoiding budgetary reforms – a view later supported by analysis of Reich Chancellery record showing that tax reform and currency stabilisation

6840-473: The schedule of payments could be enforced. However, following the first payment the Allied officials were withdrawn from everywhere but Düsseldorf , and whilst some payments in kind continued, only small cash payments were subsequently made for the remainder of 1921–22. From August 1921, the president of the Reichsbank, Rudolf Havenstein , began a strategy of buying foreign currency with marks at any price, without any regard for inflation, and it only increased

6935-427: The second half of the 1990s to remain competitive internationally. Due to its comparatively low balance sheet total internationally, Commerzbank was seen as a takeover candidate in the 1990s. The board pursued an independent continuation of the business, interpreted as rejecting a merger with Deutsche Bank. Also, a potential acquisition of Postbank by Commerzbank, which was discussed at times and would have led to

7030-400: The social commitment of Commerzbank. The focus areas are science, culture, and social welfare. The Commerzbank Foundation supports disadvantaged people, such as in their professional integration, and promotes contemporary art. In the early 1980s, Commerzbank faced a crisis due to mistakes in assessing interest rate developments. The good economic conditions later favored the restructuring under

7125-410: The sole owner of Dresdner Bank, holding 100 percent of its shares. The merger of Dresdner Bank into Commerzbank was registered in the commercial register in May of the same year. An agreement on balancing interests and a social plan, including a new organizational structure for the headquarters, was reached with the employee representatives. Even after the takeover, the major bank maintained its lending to

7220-407: The speed of the collapse in value of the mark. German officials claimed this was in order to make cash payments owed to the Allies using foreign currency. British and French experts stated that this was in an effort to ruin the German currency and, as well as escaping the need for budgetary reform, avoid paying reparations altogether, a claim supported by Reich Chancellery records showing that delaying

7315-404: The struggling German economy to prevent a credit crunch in the mid-market sector. At the end of March 2009, Commerzbank formed its internal bad bank, called PRU (Portfolio Restructure Unit), into which non-strategically valuable securities worth 15.5 billion euros from Commerzbank and 39.9 billion euros from Dresdner Bank were outsourced. A joint bad bank with the nationalized Hypo Real Estate

7410-505: The subsidiary London and Hanseatic Bank in London. The bank expanded and had branches in Berlin and Frankfurt am Main. After several mergers and acquisitions, it evolved into a major national bank with over 280 branches in Germany. After the hyperinflation in 1924 , German banking institutions were required to present a Goldmark opening balance sheet. The Commerz- und Privat-Bank valued its capital of 700 million Marks at 42 million Goldmarks. In

7505-512: The takeover of Dresdner Bank. By the end of 2009, this assessment had to be revised. Commerzbank sought additional state aid, leading to the Federal Republic of Germany acquiring over 25 percent of Commerzbank's shares, thereby securing a blocking minority. This was the first partial nationalization of a German financial institution. The silent participation of SoFFin increased to around 16.4 billion euros. In January 2009, Commerzbank became

7600-561: The towers began in April 2011 and finished in time to open in February 2014. Commerzbank The Commerzbank Aktiengesellschaft (shortly known as Commerzbank AG or Commerzbank ) is a European banking institution headquartered in Frankfurt am Main , Hesse, Germany. It offers services to private and entrepreneurial customers as well as corporate clients. The Commerzbank Group also includes

7695-554: The value of the Goldmark . Finally, the Law on the Revaluation of Mortgages and other Claims of 16 July 1925 ( Gesetz über die Aufwertung von Hypotheken und anderen Ansprüchen or Aufwertungsgesetze ) included only the ratio of the paper mark to the gold mark for the period from 1 January 1918, to 30 November 1923, and the following days. The galloping inflation thus caused the end of

7790-501: The war and imposing war reparations on the defeated Allies. This was to be done by annexing resource-rich industrial territory in the west and east and imposing cash payments to Germany, similar to the French indemnity that followed German victory over France in 1870. However, the exchange rate of the mark against the US dollar steadily devalued from 4.2 to 7.9 marks per dollar between 1914 and 1918,

7885-403: Was also talk of a large merger involving Commerzbank, Dresdner Bank, and Postbank. By mid-year, a merger of Commerzbank and Dresdner Bank was likely. In particular, Allianz, as the largest shareholder of Dresdner Bank, expected new momentum for its business from such a merger. After months of negotiations, the parties finally announced Commerzbank's takeover of Dresdner Bank. This was seen as

7980-578: Was also upgraded with digital technologies. At that time, the bank earned around two-thirds of its income abroad, for example, through its new representation in Taipei and expansions in Hungary and the Czech Republic. However, CEO Martin Kohlhaussen  [ de ] still demanded more performance, especially from the sales of domestic branches. Commerzbank aimed to significantly increase its return on equity in

8075-446: Was delayed in 1922–23 in the hope of reductions in reparations. Particularly, Allied analysis of German statistics showed that printing of paper currency was being used to maintain tax rates much lower than in Allied countries, to fund relatively high levels of state expenditure, and that this effect was being worsened by unrestricted capital flight from Germany. Reparations payments continued more or less in full from 1924 to 1931 without

8170-409: Was financed by some combination of issuing bonds and simply creating more money: both increasing the supply of German mark-denominated financial assets on the market and so further reducing the currency's price. When the German people realized that their money was rapidly losing value, they tried to spend it quickly. That increased monetary velocity and caused an ever-faster increase in prices, creating

8265-519: Was initially discussed to strengthen the company's independence. Despite initial challenges, Eurohypo became an important component in Commerzbank's earnings statement. Therefore, the bank stopped the IPO planned 2005 to prepare for its takeover of Eurohypo. The re-entry into public and real estate financing marked a significant change in the company's strategy. Eurohypo initially insisted on its independence. In November 2005, Commerzbank finally announced

8360-438: Was largely completed. Commerzbank evaluated the process as a success and highlighted the positive response from all relevant target groups. In 2011, Commerzbank began repaying the silent participation of SoFFin. One of the most significant capital increases in German history partly financed this: a total volume of 14 billion euros, comprising 11 billion from investors and 3 billion from the bank's reserves. Despite criticism,

8455-417: Was left of Commerzbank Securities was folded into a division of the commercial bank called Corporates and Markets. In 2001, Commerzbank restructured its domestic business. It created a bank for private customers and a separate unit for corporate and investment clients. Units were sometimes opened on Saturdays to remain competitive in the increasingly challenging private customer market. In 2004, it confirmed

8550-482: Was listed in A and B bonds payable under the quarterly deadlines in the schedule; the remaining sum, about 82 billion gold marks, was listed as C bonds that were somewhat hypothetical and not payable under the schedule but instead left to an undefined future date, with the Germans being informed that they realistically would not have to pay them. The German currency was relatively stable at about 90 marks per dollar during

8645-682: Was now on a profitable multi-channel bank. To this end, the bank maintained its branch network while many other banks reduced their local presence. Additionally, the thriving business with medium-sized corporate customers was to continue unhindered. Hyperinflation in the Weimar Republic Hyperinflation affected the German Papiermark , the currency of the Weimar Republic , between 1921 and 1923, primarily in 1923. The German currency had seen significant inflation during

8740-464: Was set up by Hans Luther when he became Finance Minister. After 12 November 1923, when Hjalmar Schacht became currency commissioner, Germany's central bank (the Reichsbank ) was not allowed to discount any further government Treasury bills , which meant the corresponding issue of paper marks also ceased. The discounting of commercial trade bills was allowed and the amount of Rentenmarks expanded, but

8835-471: Was sometimes discussed. The following years were marked by the integration of Dresdner Bank into Commerzbank. The merging of IT platforms, in particular, became a challenge. The "Dresdner Bank" brand was gradually phased out, with the new Commerzbank adopting some aspects of Dresdner Bank's former corporate identity . The rebranding became visible at branches within three weeks. By May 2011, both financial institutions' strategic and operational integration

8930-574: Was the first German banking institution to open an operational branch in New York City in 1971. Another milestone was the acquisition of Dresdner Bank in 2009. In the wake of the global economic and financial crisis, the Federal Republic of Germany became a major shareholder in the company. To this day, the government remains a significant bank shareholder, which is listed on the DAX . In recent years,

9025-460: Was worth 4,210,500,000,000 marks. Various measures were introduced by German authorities to address this, including a new currency called the Rentenmark , backed by mortgage bonds, later itself replaced by the Reichsmark, and the blocking of the national bank from printing further paper currency. By 1924 the currency had stabilised and German reparations payments began again under the Dawes Plan . As

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