
338 Operational Risk Control
16.4 Are mergers and disinvestments a good way to cut costs?
Mergers among credit institutions, for reasons of economies of scale, big egos, or any
other, are a vast subject, and, with one exception, are not the theme of this book. The
exception is mergers of a specific division belonging to different financial entities,
which then becomes their insourcer. An example is the merger of mortgage divisions
of three major German banks for cost cutting reasons. In early November 2001
Commerzbank, Deutsche Bank, and Dresdner Bank announced the merger of their
mortgage banking operations, in a move which created Germany’s biggest ...