Nationalisation of Commerz-Schmerzen looming?

Red-hot was the trade of Commerzbank, that lost almost 14% at the close of regular trade, on the German stock market, see for details here: http://www.reuters.com/finance/stocks/overview?symbol=CBKG.DE ...

Short summary of key news re Commerzbank:

* Germany to take 25 pct stake in Commerzbank
* Commerzbank gets extra 10 bln euros of capital
* Allianz bolsters Dresdner capital by 1.45 bln euros
* Purchase of Dresdner to close within days

Did I write today earlier about the Germany failing to sell Bunds http://thefrugalplain.blogspot.com/2009/01/germany-failed-to-sell-bunds-yesterday.html ?

Interesting? Well, as I wrote here http://thefrugalplain.blogspot.com/2009/01/kbw-bank-sector-index-monitoring.html, I am more concerned about Deutsche Bank that runs 50 times leverage of book equity to total liabilities. Do you see the 2 trillion EUR balance sheet, and a mere 35 billion EUR equity http://www.reuters.com/finance/stocks/incomeStatement?stmtType=BAL&perType=INT&symbol=DBKGn.DE? Are the total liabilities some 80% of Germany' s nominal GDP?

And they play games too. FT Alphaville has the story: http://ftalphaville.ft.com/blog/2009/01/05/50774/moody-bonds/

Well, and German manufacturing orders plunged again in November by 6.0% on month, down 28% from the peak ...

Are German government bonds one of the world’s most liquid and safe assets?