The shares of Commerzbank AG tumbled on Wednesday following the decision of the German government to lower its stake in the business.
Parliamentary State Secretary at the Federal Ministry of Finance Florian Toncar mentioned in a statement that the Federal government's investments back in 2008 and 2009 were made to shield financial market stability amid the banking crisis. However, as the business is now "stable and profitable again," the government stake can be reduced, Toncar explained, adding that the shares would be sold "step by step."
The banking institution's stock declined 3.02% at 9:10 am CET, selling at €12.695 apiece.
