Money Madness
In today's financial futures markets, billions of dollars go round the world in seconds in a frenzy of gambling and speculation. Some of the funds dealing with the buying and selling of risk are so complicated and volatile that rocket scientists have been brought in to help operate them.
One of these funds is Steinhardt and Partners. It is known as a hedge fund and it uses money put up by investors to dabble in the futures or "derivatives" markets, bettingoncurrenciesand interest rates. In February 1994 there was panic on the world's markets and prices collapsed. Most of the financial world's high rollers, like Steinhardt and Partners, as well as many pension funds made terrible losses.
In the light of this year's market turmoil, Assignment looks at concerns about gambling in derivatives. It examines the risk it poses to the financial system and asks whether new regulations are needed to control derivatives or should the financial system be totally revamped.
Producer Stuart Goodman ; Editor Keith Bowers