What's going on?

American activist investor Cerberus Capital Management wrote Commerzbank a cute little note just to let the firm know it’s completely failing its shareholders’ interests.

What does this mean?

Cerberus�s beef is that Commerzbank hasn�t met the financial targets it set itself back in 2016, and continues to focus on unprofitable revenue growth without cutting costs. Commerzbank has refused consultancy services from Cerberus�s advisory business too � an offer its rival Deutsche Bank readily accepted in the past. And what do you know, the activist investor is completely on board with Deutsche�s turnaround plan�

Cerberus has given Commerzbank a list of demands, including its own seat on the board so it can directly influence the company�s strategy. And if those demands aren�t met, the bank reckons it could team up with other investors like the German government � also critical of Commerzbank�s plans � to force the changes it wants.

Why should I care?

For markets: Power to the� er, multinationals.

When activists wield their influence in hopes of improving a company�s fortunes, their success can result in a rising share price that benefits other investors too � which might be why some bought into Commerzbank on Wednesday, pushing up its share price. Aviva might’ve been inspired too: the insurer used its status as one of the biggest shareholders in HSBC and Standard Chartered to voice disapproval of their support for Hong Kong�s new security rules this week, perhaps hopeful that added pressure will change their minds.

The bigger picture: Losing interest.

The Federal Reserve shared its latest views on the US economy on Wednesday, and banks will no doubt be keen to consider how the central bank might support the economy without lowering interest rates and hurting banks� profits � via �yield curve control�, for example. But if rates do fall, at least one bank � Morgan Stanley � is ready to bolster its investment management business with acquisitions in an effort to help insulate it from the effects of low rates.