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IPFS News Link • General Opinion

"Nobody Has A Freaking Clue": Big Short's Steve Eisman Expands His Brexit Short

• by Tyler Durdan

--"The Big Short's" Steve Eisman said that he is shorting two U.K. banks on expectations of a hard Brexit. Eisman said that the U.K. is one of the biggest risks Eisman is watching, and while he declined to name the two banks he is shorting, he said that he expects the U.K. government to agree its exit from the bloc, but that Parliament is likely to reject the deal after that.

"I'm shorting two stocks in the U.K., but I've got a screen of about 50, and I might short all 50 if I think Jeremy Corbyn is going to be prime minister," Eisman said. "Corbyn's a Trotskyite. Now I know my Trotskyites well and I know you don't want to be invested in the U.K. if a Trotskyite is prime minister."

While Eisman didn't hint which banks he's targeting, Bloomberg notes citing Markit data that Metro Bank and CYBG are the most shorted financials in the FTSE 350 Index.

Fast forward to today, when the famous short-seller told Bloomberg that he has widened his "Brexit short", i.e., bets against U.K. banks, adding one more bank to his short bucket.