UK’s Turner criticises carry trade – report

LONDON, Jan 29 (BestGrowthStock) – The chairman of Britain’s
regulator the Financial Services Authority branded so-called
carry trades “economically valueless,” the Times reported on
its website on Friday.

Adair Turner said banks and hedge funds that borrowed
cheaply in U.S. dollars to bet on higher yielding investments
in emerging markets were adding no value to the real economy,
the paper said.

“If I could wave a magic wand here, and greatly reduce the
carry trade, I’m pretty certain the world would be a better
place,” he was quoted as saying after a private session on
casino banking and regulation at the World Economic Forum in

“It’s a form of speculative activity where you can’t work
out what the value is to the real economy.”

Turner, who last year said parts of London’s financial
district, were “socially useless,” said carry trade speculators
relied on being able to get out from the trade before the
“train wreck,” or sudden collapse of the trade they had

Stock Market News

(Reporting by Avril Ormsby; Editing by Diane Craft)

UK’s Turner criticises carry trade – report