Neuberger Berman portfolio manager Steve Eisman, who predicted the financial crisis, is still finding problematic stocks and investing manias in the financial markets.
The investor confirmed his fund is short Canadian financials, Deutsche Bank and Wells Fargo in a Bloomberg Television interview aired on Sunday from the CFA Institute’s annual conference in Hong Kong.
“Deutsche Bank has real profitability issues. They haven’t spent money on technology in a very very long time. They’re probably under-capitalized,” he said. “I think they’ll probably raise capital again next year. Deutsche Bank is a problem bank. I think it has to shrink dramatically.”
Eisman is known for being one of the few investors to profitably bet against subprime mortgage securities during the financial crisis. He was a key character in Michael Lewis’ best-selling book “The Big Short” and was depicted by actor Steve Carell in the movie based on the book.
The fund manager expressed his skepticism over cryptocurrencies on stage at the CFA Institute’s annual conference in Hong Kong Monday.
“I don’t see the purpose of it,” he said at the conference, according to the Wall Street Journal. “What value does cryptocurrency actually add? No one’s been able to answer that question for me.”
Eisman also reportedly said digital currency prices are rising due to speculation and money laundering at the conference.
Despite his negative views on certain bank stocks, the investor is generally optimistic on the environment for the U.S. banking sector.
“The financial system in the United States has changed radically. Leverage has been reduced enormously,” he said on Bloomberg Television. “For the first time in all the years I’ve covered bank stocks I can honestly say the financial system in the United States is safe.”
Deutsche Bank and Wells Fargo did not immediately respond to requests for comment.