Fresh fin crisis around corner amid volatile derivatives, warns Mobius

Written by Bloomberg | Tokyo | Updated: May 31 2011, 09:24am hrs
Mark Mobius, executive chairman of Templeton Asset Managements emerging markets group, said another financial crisis is around the corner because the causes of the previous crisis havent been solved. The total value of derivatives in the world exceeds total global gross domestic product, creating volatility and crisis in stock markets, Mobius said on Monday.

Are the banks bigger than they were before Theyre bigger, Mobius said. Are the derivatives regulated No. Are you still getting growth in derivatives Yes.

The crisis was caused in part by the proliferation of derivative products tied to US subprime loans and contributed to collapse of Lehman Brothers. The MSCI World Index tumbled 38% in the six months after Lehmans fall.