BERLIN, March 6 (Reuters) - European Central Bank President Jean-Claude Trichet said on Saturday that pushing risky bank activities to unregulated firms could breed more instability.
'If we push all these activities from regulated institutions to non-regulated, don't we take the risk of having a system that could be even more unstable?' Trichet said, responding to comments by White House economic adviser Paul Volcker on limiting proprietary trading at commercial banks.
(Reporting by Noah Barkin, writing by Paul Carrel) Keywords: FINANCIAL REGULATION/TRICHET (noah.barkin@reuters.com; +49 30 2888 5091; Reuters Messaging: rm://noah.barkin.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'If we push all these activities from regulated institutions to non-regulated, don't we take the risk of having a system that could be even more unstable?' Trichet said, responding to comments by White House economic adviser Paul Volcker on limiting proprietary trading at commercial banks.
(Reporting by Noah Barkin, writing by Paul Carrel) Keywords: FINANCIAL REGULATION/TRICHET (noah.barkin@reuters.com; +49 30 2888 5091; Reuters Messaging: rm://noah.barkin.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.