Jean-Claude Trichet attacks move to split investment and retail banking

Jean-Claude Trichet, president of the European Central Bank, today said he did not believe that banks should be forced to split their investment banking activities from their retail business.

This puts him in direct opposition to Bank of England Governor Mervyn King who wants "casino" activities separated from commercial banking.

Trichet said universal banking had served Europe well and splitting banks could see their more risky activities move to less regulated countries.

He said: "We should focus efforts on enhancing and enlarging the perimeter of supervision and... regulations to a wider range of riskier activities and institutions."