The sale of part of the federal government's stake in Commerzbank has brought the German Finance Agency into the public eye, along with its Co-Managing Director, Eva Grunwald.

The Federal Ministry of Finance in Berlin was surprised by the outcome of last week’s auction. Following a bookbuilding process organised by the German Finance Agency, Unicredit acquired 4.5% of Commerzbank shares from the government – and also acquired the same amount through other means.

With a total of around 9% of Commerzbank's shares, Unicredit is now the second largest stakeholder, after the federal government, which still holds 12%. The labour union Verdi voiced strong criticism, expressing concerns over potential job losses in the event of an attempted merger between the two banking groups. There has been speculation about how Unicredit was able to acquire its stake, and whether the recent resignation of Commerzbank CEO Manfred Knof is linked to Unicredit's strategic intentions.

Grunwald sheds some light on the situation: „We learned two things after the start of the bookbuilding process, which at that point could not be stopped: that the CEO of Commerzbank would not be extending his contract and, shortly before closing, that Unicredit had already built up a 4.5% stake in the background,“ the executive told Börsen-Zeitung.

The federal government has consistently made it clear that it did not intend to retain an interest in the bank indefinitely. „The stabilisation of Commerzbank has been achieved – the state's withdrawal was only a matter of time“, said Grunwald. „We had announced the Steering Committee's decision to sell 4.5% of the Commerzbank shares promptly, so that all market participants could prepare. The possibility of UniCredit participating in this process was always an option, and did not surprise me.“

Since April 2023, Eva Grunwald has been Co-Managing Director of the German Finance Agency. She is responsible for managing the crisis stabilisation fund Soffin. This fund holds the federal government's shares in Commerzbank. The Finance Agency has been responsible for Soffin the since 2018, incorporating this role into its other activities for the federal government: debt management, borrowing, and cash management. In 2000, the federal government professionalised this with the establishment of the Finance Agency and, with its headquarters in Frankfurt, positioned itself closer to the market.

Grunwald’s responsibilities at the Finance Agency include risk controling, legal affairs, retail banking, and finance. Besides Soffin, she is also responsible for the federal government's second support fund, the Economic Stabilisation Fund (ESF), which financed companies during the coronavirus crisis in 2020.

Grunwald worked at Deutsche Bank for 25 years, including 20 years in executive roles, before moving to the Finance Agency in 2023. In 2021, she joined the board of BHW Bausparkasse in Hamelin, having previously been on its supervisory board from 2016 to 2018 as General Authorised Representative.

Simultaneously, Grunwald was part of Deutsche Bank’s top management in retail banking – a sector she navigated through turbulent times. Her work covered the construction financing portfolio of more than 160 billion euros. Around 500 employees were under her responsibility.

Born in 1972, Grunwald has held diverse positions throughout her career, accumulating substantial experience. This is one of the reasons she is well-connected in the financial market and banking sector.

She began her career in 1998 with a trainee program at Deutsche Bank. There, and at Postbank and BHW Bausparkasse, she worked in risk controlling, mortgage financing, credit restructuring, and settlement. From 2018, she was been the Managing Director of Real Estate Product Management at Deutsche Bank, overseeing all aspects of market and post-market operations.

Before moving to the markets side, she was responsible for managing non-performing loans, including their sale. Colleagues describe her as a results-oriented problem solver, and is also noted for her personable approach.

The federal government and the Finance Agency benefit from Grunwald's extensive transaction experience, including her expertise in managing complex stakeholder relationships. „I understand that some stakeholders would have preferred a wider distribution of shares“, she notes, regarding Commerzbank. „But we are talking about two publicly traded European banks, so strategic purchases and consolidation efforts are to be expected.“

At the beginning of September, the federal government announced that it wanted to completely exit Commerzbank – initially in a first step. The federal government is currently unable to exit without losses, but the Finance Agency action has reduced these. At the time of the exit announcement, the market value was around 2.5 billion euros, while the federal government had paid double that amount. At 13.20 euros per share, Unicredit paid more than the same day price of 12.60 euros in the auction. „We sold in a transparent and non-discriminatory process at a price significantly above the closing price“, said Grunwald. „This is positive for the taxpayer.“