Steve Eisman, the Neuberger Berman Group money manager who famously predicted the collapse of subprime mortgages before the 2008 financial crisis, recommended shorting Deutsche Bank AG shares.
“Deutsche Bank has real profitability issues,” Eisman said in a Bloomberg Television interview in Hong Kong. “Deutsche Bank is a problem bank. I think it has to shrink dramatically,” adding that the ‘undercapitalized’ bank will probably raise capital next year.
Eisman also recommended bearish bets against Canadian financial companies and reiterated that he is still short Wells Fargo & Co.
The investor’s early bets against the housing market before the 2008 crisis were chronicled in Michael Lewis’s 2010 book “The Big Short,” which highlighted money managers who profited from the market turmoil. Eisman joined New York-based Neuberger Berman after closing his hedge fund Emrys Partners in 2014.
More from Bloomberg.com: This Is What Mahathir’s Return Just Did to Malaysian Stocks
More from Bloomberg.com
- Trump in Reversal Says U.S. to Help China's ZTE Stay Afloat
- Apple CEO Lauds Gun-Control Activists; Jabs at Google, Facebook
- Tesla Engineering Chief Takes Break After Musk Displaces Him
Read Eisman of ‘The Big Short’ Fame Recommends Shorting Deutsche Bank on bloomberg.com