1 Zombie + 1 Zombie equals 1 bigger zombie
I am now back to my Wednesday pattern of devoting more time to non-blog post writing and less time to blog post writing. But I was interested overnight in the news that the German government is trying to force (pressure) the partly-state owned Commerzbank (Zombie 1) into a merger with Deutsche Bank (Zombie 2). The result will probably just be a bigger zombie bank. It is unlikely it will reduce the vulnerability that both banks currently face as a result of poor management, risky loan portfolios (greed over prudence), massive debt burdens, and costly, underperforming branch structures (especially in the case of Commerzbank). Another example of the failure of the European Union to provide policy structures that advance prosperity and reduce the risk of crises.