Deutsche and Santander bosses warn against carving up banks

CUTTING big international banks down to size would not solve problems raised by the financial crisis and would create a sector unable to offer services required to support corporate clients, a top banker said yesterday.<br /><br />&ldquo;Size is not an end in itself and it is not necessarily evil either,&rdquo; Deutsche Bank chief executive Josef Ackermann told a London conference. &ldquo;The refragmentation of financial markets is in nobody&rsquo;s interest... It is unlikely to bring greater stability to our markets,&rdquo; he said.<br /><br />Multinational firms need to be able to operate on a global scale and only large banks have the resources to service their needs and to finance big deals, Ackermann said. <br /><br />&ldquo;The idea that we could run a modern, prosperous economy with mid-size savings banks is totally misguided,&rdquo; he said.<br /><br />His comments were echoed by Antonio Horta-Osorio, the head of Santander&rsquo;s British operations<br /><br />He said: &ldquo;It was not just big banks, there were several small and non-complex banks that failed. Small institutions can pose systemic risk.&rdquo;<br /><br />Ackermann also said detailed &ldquo;living wills&rdquo;, where banks plan for their own demise, &ldquo;will be very theoretical and lead to inefficient structures&rdquo;.