Terror market creator 'to resign'

Poindexter played a key role in the Iran-Contra scandal.

The retired US admiral behind controversial proposals to set up an online trading market to help predict terrorist attacks intends to resign, an official says.

Under John Poindexter's plan - which has now been shelved - bets could be made on future terrorist attacks, conflicts, and assassination attempts.

From the trading patterns, the Pentagon hoped to gain clues about possible attacks that might not be picked up by government agencies.

There was uproar after opposition Democrats in the US Senate highlighted the suggestion, which they described as ridiculous and grotesque.

"It's my understanding that he... expects to, within a few weeks, offer his resignation," an official told reporters.

'Unfair' hearing

Admiral Poindexter - who holds a position in the Pentagon - also designed the the Total Information Awareness programme which aimed to search for suspected terrorists by combing through the personal records of Americans.

The US Senate recently voted to cut funding for the programme, renamed Terrorism Information Awareness (TIA), despite pressure from the White House to back it.

Admiral Poindexter, a former national security adviser under President Ronald Reagan, also played a key role in the 1980s Iran-Contra scandal.

"Everybody certainly recognises Admiral Poindexter's background. And in the context of that background, it became in some ways very difficult for him to receive an objective reading of work that he was doing on behalf of finding terrorists," the official said.