Marriage of Money

A pair of Europe's wealthiest banks decided last week that two can live richer than one. Adding a new dimension to the economic collaboration among Common Market countries, the Credit Lyonnais, which is France's second largest bank, and the Commerzbank, which is West Germany's third largest, formed a partnership. They stopped short of a merger, partly because Credit Lyonnais is owned by the French government, but agreed to coordinate both their operations and lending round the world. There will be a virtually unified network of branches serving clients of both banks and a free exchange of information and managers. In addition, said a Credit Lyonnais spokesman, as part of a big international expansion, the partners plan to establish a holding company and "other important creations, especially in New York."

The combine will have 3,000 offices, 50,000 employees and deposits of $12.3 billion, making it the world's fifth-ranking bank establishment (after the Bank of America, First National City, Chase Manhattan and Britain's Barclays Bank Ltd.). The agreement is the first of its kind in the Common Market, and moneymen regard it as an important trend setter. U.S. banks have won much business in the Market, and the entry of Britain would open the Continent wider to the City of London's powerful banks. Europeans see multinational combines as the logical way to compete. Leaders of Lyonnais and Commerzbank say that their association is open to other partners, and some bankers predict that Dutch, Belgian and Italian banks may join in.

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