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.”