BANKS Universal model will survive reform Separation within subsidiaries sought

The French government will ban high-frequency trading, agricultural-commodities derivatives trading and other "highly speculative" activities but will allow banks to keep intact most market-making activities in its forthcoming banking reform law.

Pierre Moscovici, finance minister, told the Financial Times yesterday that the law would be "very bold, very radical but it will preserve the French universal banking model".

Banks would also have to present supervisors with a resolution plan in case of a crisis and would be required to pick up the bill for failure.

David Fuller's view A small step in the right direction. Well done France!