Germany has long had a complicated relationship with private equity. Sometimes politicians have vilified buyout firms as “locusts” stripping the German economy; other times, private equity money has been a welcome lifeline for troubled companies. That was the case in July when private equity firms Advent International and Cinven bought Thyssenkrupp’s elevator business for 17.2 billion euros, or $20.2 billion. Deutsche Bank was whittling down its holdings of high-risk derivatives. This year, Commerzbank and Deutsche Bank, like most European and American banks, have had to set aside hundreds of millions of euros to cover losses from problem loans.

Source: International New York Times August 05, 2020 13:52 UTC