Mobius: Derivatives to cause new financial crisis

Emerging markets veteran Mark Mobius has warned the growing use of derivatives is set to cause a fresh financial crisis.

The executive chairman of Templeton's emerging markets group pointed to the lack of regulation surrounding derivatives and the growing use of these financial instruments as a cause of the last crisis, Bloomberg reports. He said: "There is definitely going to be another financial crisis around the corner because we have not solved any of the things that caused the previous crisis. "Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes." Mobius said the total value of derivatives in the world is ten times greater than total global GDP. He added with t...