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Turner hints at crackdown on carry trade

FSA chairman Adair Turner has hinted at a crackdown on carry trade, labelling a big part of the City’s foreign exchange trading business “economically valueless”.

According to the Times, Turner was speaking after a private session on casino banking and regulation.

He said banks and hedge funds that borrowed cheaply in US dollars to bet on higher yielding investments in emerging markets were adding no value to the real economy.

Of the carry trade, Turner said: “It is a form of speculative activity where you can’t work out what the value is to the real economy. You are betting you are going to get out before the train wreck – the adjustment –  happens.

“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.”



Charging myths

So many myths surround fees. The RDR is proposing to introduce adviser-charging. There is a big difference between adviser-charging and fee-charging. With the latter, you charge for advice regardless of whether your customer implements that advice by purchasing a financial product. With the former, you could continue to work on a speculative basis and only […]


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There is one comment at the moment, we would love to hear your opinion too.

  1. Incompetent Regulators Awards Team 1st February 2010 at 2:54 pm

    Economically valueless………………..reminds me of another organisation…..mmmmmmmm I wonder which one it is Mr Turner?

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