Too many of the recent bank mergers have been driven by the wrong reasons, primarily financial ones rather than ones tied to strategy. These deals are poorly thought out and poorly funded, or based on questionable assumptions by investment bankers, lawyers, and even some bank chief executive officers.

Historical and empirical evidence suggests that the larger a bank gets, the more it becomes unmanageable, creatively in-bred, and slow to react to changing customer needs. Economies of scale and synergies are usually talked about in justifying the mergers, but few are realized.

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