ADVERTISEMENT
ADVERTISEMENT

'Big Short' investor Steve Eisman says the financial system is 'safe,' but he's worried about Europe's banks

"European authorities did not follow the lead of the US and allow the banks to take the pain early. This was a mistake," Eisman told the Financial Times.

Actor Steve Carell played Steve Eisman in the film adaptation of Michael Lewis' The Big Short.

LONDON — Steve Eisman, who made a fortune by successfully predicting the 2007-2008 financial crash, says the global financial system is "safe."

Speaking in an interview with the Financial Times, however, Eisman said that he had concerns about the continent and that despite increased stability in the system, not every bank was safe.

"European authorities did not follow the lead of the US and allow the banks to take the pain early," Eisman said. "This was a mistake. The other hindrance has been the austerity policies of governments, which has prolonged the pain for the continent."

These issues, Eisman told the FT, mean parts of Europe's financial system remain undercapitalised.

ADVERTISEMENT

Regardless of the issues in Europe, Eisman said, he regards the global financial system as "safe," saying: "The world is a very different place to what it was precrisis. For the first time in my working life, which is more than 30 years, I would regard the financial system as safe."

Eisman was featured in Michael Lewis' award-winning book "The Big Short" as one of the few people to correctly predict that the financial crisis of 2007 was coming. He made a fortune when his firm FrontPoint Partners bet against subprime mortgages — as much as $1 billion, The Guardian reported.

He was subsequently played in the film adaptation of the book by Steve Carell — albeit with his name changed to Mark Baum.

His tone with regard to Europe has moderated somewhat since his most recent prominent interview with a British publication, in which he said the continent was "screwed." Speaking with The Guardian in November, Eisman cited the surfeit of nonperforming loans in the Italian financial system as a cause for concern, saying: "Europe is screwed. You guys are still screwed."

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT