 THE inquiry into the banking sector reached another milestone yesterday when the man leading the government-appointed commission offered hints of a compromise that may only frustrate both sides of the argument.  Sir John Vickers, chairman of the Independent Commission on Banking, spoke of ringfencing the core elements of the banks that will allow for some form of disconnection between retail and investment banking operations, without actually carving them up.  It won't satisfy the bloodlust of the bank bashers, and nor will it please those who feel that it was poor management and not the structure of the banks that caused the financial crisis.  While these initial thoughts suggest a bit of a fudge, there is at least an acknowledgement of the growing opposition to a split from those who believe such a solution is not only undesirable but undeliverable.  Last year Vickers described the Lloyds-HBOS merger as a mistake and Clare Spottiswoode, one of the ICB members, let slip that the ICB could recommend ripping it apart. Those such as the Liberal Democrats who support a break-up scented victory.  But opposition to any enforced splits has gathered momentum: from Lloyds' Scottish managing director Susan Rice to Peter Sands, chief executive of Standard Chartered. In an interview yesterday Sands defended the universal model as the best means of ensuring the future stability of the banks.  With powerful voices lined up to oppose a full-scale dismantling of the banks it has looked increasingly likely that the ICB would step back from an outright break up.  If yesterday was the hors d'oeuvres, the starters will be served up in april when we get an options paper that is expected to contain more details than originally planned, followed by the main course in September when the commission delivers its recommendations to the Government.  There are still a lot of ingredients to consider, starting as early as tomorrow morning when Vickers' speech will be assessed by the markets. added spice to the mixture will be Peter Sands' rejection of the so-called subsidiarisation model as misguided, impractical and costly. He warned that Balkanisation will raise the chances of failure.  It is also likely that tomorrow the government will announce the outcome of its talks with the banks on bonuses and lending, in which more give-and-take will again allow both  