Shorts Raise Bets Against Commerzbank, German Financials

Commerzbank (CRZBY.PK) had an initial lift from good news on Tuesday. “The German government plans to loosen capital rules which will help financial institutions.” reported Reuters. The change should help Commerzbank, as it has weak asset quality. It should also bolster its capital ratios which in turn will help the bank increase lending volumes.

The short base for Commerzbank (as measured by Percent Shares Outstanding on Loan) has risen 11.23% over the past month and now stands at 9.71%. This is roughly 8% below the 52 Week high of 10.59% which was hit on April 3rd 2009. The short base for Commerzbank is higher than other German Financial companies; Deutsche Postbank (2.1%), Deutsche Bank (DB) (6%) and Allianz (AZ) (3.5%).

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