‘Big Short’ fund manager says financial system is safe
As the 10-year anniversary of the subprime mortgage crisis approaches, Steve Eisman, senior manager at Neuberger Berman, affirms the global financial system is finally safe. Eisman, who was portrayed by Steve Carrell on “the Big Short”, explains that post-crisis regulation, including the Dodd-Frank rules put in place in the US, have stabilised the system. Even the US auto industry, which he suspects could see an imminent rise in subprime car loan defaults, is not at a great risk. Nonetheless, he warns that undercapitalised European banks could pose a problem in the future.