September 14, 2012 CNBC EXCERPTS: CNBC EXCLUSIVE: CNBC'S MICHELLE CARUSO-CABRERA SPEAKS WITH FORMER ECB PRESIDENT JEAN-CLAUDE TRICHET TODAY WHEN: Today, Friday, September 14, 2012 WHERE: CNBC's Business Day Programming Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Former European Central Bank President Jean-Claude Trichet. Following is an article on the interview on CNBC.com: http://www.cnbc.com/id/49031034 All references must be sourced to CNBC.
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TRICHET ON THE FED:

JEAN-CLAUDE TRICHET: Not only am making the working assumption that it will work, but I think that it is of extreme importance for-- not only Europe, not only E.U. area but the rest of the world. And, again, it depends now, crucially, on governments individually-- I mean the governments that have to adjust and collectively, through the E.F.S., E.S.M. to deliver. In the past they did not deliver it always rapidly and-- I would say actively what they had decided.

MICHELLE CARUSO-CABRERA: Ben Bernanke's announcement yesterday, that he's going to purchase mortgages and potentially other assets until we see unemployment improve in the United States. Is that a good decision on his part?

JEAN-CLAUDE TRICHET: Well, it's not my habit-- to comment on decisions of-- of the sister institutions. I would only say that it demonstrates also that when you look at the advanced economy through the grid of the central banking, you see that we are all engaged in non-standard measures.

MICHELLE CARUSO-CABRERA: How worried are you about the fiscal cliff in the United States?

JEAN-CLAUDE TRICHET:I think it is part, of course, of the major issue that in the advanced world, in the advanced economy world, you have to cope with it.

MICHELLE CARUSO-CABRERA: But if it happens-- does it bring on another recession in the United States?

JEAN-CLAUDE TRICHET: Well, I mean I'm sure that the U.S. leadership, whatever you have in the present discussion, of course, between the two majority sensitivities, but the sense of-- the superior interest of the country will prevail. I am absolutely confident in that, you know. I don't trust that it is possible that the sense of the superior interest of the United States of America and, by way of consequence, of the entire of course advanced economy and, by way of consequence, the entire world. So I remain confident.

MICHELLE CARUSO-CABRERA: You have a lot more faith in politicians than many people.

JEAN-CLAUDE TRICHET: Perhaps.

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TRICHET ON BANKING REGIME:

JEAN-CLAUDE TRICHET: It depends on your own judgment. In the heat of a dramatic crisis. And what would be the new, permanent regime in normal times. Permanent regime in normal times, there is absolutely no doubt that you have, of course, to have all the risks that have been taken transformed in-- if it is the case, losses. That's normal. We should not have a permanent regime in the future where you will have too big to fail or too interconnected to fail. Too complex to fail and so forth. That's over. That should be over. Now, if you are still coping with a dramatic crisis, this is another story. And you have to make a judgment.

MICHELLE CARUSO-CABRERA: So-- so to paraphrase what you just said, I wanna be clear, once the crisis is over and there's a new banking regime, it should be okay for senior debt holders to take a hit, because you didn't want that to happen during Ireland in the midst of the crisis?

JEAN-CLAUDE TRICHET: Yeah, I think, again, you have to make the clear difference and look at the consequences, taking into account the overall situation.

MICHELLE CARUSO-CABRERA: Greek creditors. A lot of Greek creditors who lost money and took a hit during the restructuring are angry with the E.C.B. You bought the same bonds yet you didn't take a hit. They see it as a violation of contracts. A lack of respect for property rights. Is that an accurate way for them to look at it?

JEAN-CLAUDE TRICHET: No, I don't think so because-- had the E.C.B. not been there in any case, they would have lost much, much more. There is absolutely no doubt of that. So I think that in the terms of the...on is it fair or not, there is absolutely no doubt. On the other hand, the E.C.B. has the taxpayers' money and has to be very, very keen on defending the interests of the taxpayers. So I will not embark in this politics.

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TRICHET ON FISCAL CLIFF:

JEAN-CLAUDE TRICHET: Not only am making the working assumption that it will work, but I think that it is of extreme importance for-- not only Europe, not only E.U. area but the rest of the world. And, again, it depends now, crucially, on governments individually-- I mean the governments that have to adjust and collectively, through the E.F.S., E.S.M. to deliver.

MICHELLE CARUSO-CABRERA: How worried are you about the fiscal cliff in the United States?

JEAN-CLAUDE TRICHET: I think it is part, of course, of the major issue that in the advanced world, in the advanced economy world, you have to cope with it.

MICHELLE CARUSO-CABRERA:But if it happens-- does it bring on another recession in the United States?

JEAN-CLAUDE TRICHET: Well, I mean I'm sure that the U.S. leadership, whatever you have in the present discussion, of course, between the two major sensitivities, but the sense of-- the superior interest of the country will prevail. I am absolutely confident in that, you know.

MICHELLE CARUSO-CABRERA: Do you miss running the ECB?

JEAN-CLAUDE TRICHET: Well, it is such, a heavy, important, inspiring responsibility, but I had my 8 years. I think its a good period..