Eisman - shorting two UK banks

[OLTB]

Morning all

Yes, I know that it's another analyst and their opinions can be wrong, but I thought the wider article was interesting.

Steve Eisman (The Big Short fame) says he has shorted two (unnamed) UK banks as he thinks that the UK will get a deal from the EU but that it will be rejected by parliament. Who knows...

He then says that he'll short all 50 bank stocks on his screener if Corbyn is elected

The link is here if anyone's interested https://www.bloomberg.com/news/articles ... -on-brexit

Cheers, OLTB.

[Dod101]

One bank will almost certainly be Lloyds since it must be the most exposed to the UK economy, one reason why I do not hold it. At a guess the other would presumably be RBS.

Dod

[GoSeigen]

One bank will almost certainly be Lloyds since it must be the most exposed to the UK economy, one reason why I do not hold it. At a guess the other would presumably be RBS.

Dod

Did you read the article? It mentioned the two most likely targets: Metro Bank Plc and CYBG Plc. Why would anyone with half a brain want to short Lloyds? They've promised 10% of cash to shareholders for next year alone.

GS

[Dod101]

Actually I could not get the link to work so no I did not read the article. I still think that Lloyds will be the worst affected of the banks since it is almost entirely UK oriented.

And by the way I like to think that I have at least half a brain.

Metro Bank is hardly going to cause an economic crisis if it went to the wall. I had forgotten about CYGB but I guess since it spun off from its Australian masters it will be very exposed to the UK economy.

Dod

[GoSeigen]

[Deleted]

Metro Bank is hardly going to cause an economic crisis if it went to the wall. I had forgotten about CYGB but I guess since it spun off from its Australian masters it will be very exposed to the UK economy.

Who suggested Metro Bank might cause an economic crisis, or why did you raise that in this context?

GS

Moderator Message:
Please try to avoid becoming too personal with your arguments. - Chris

[Walrus]

Personally think Lloyds is a screaming buy, one of the HYP candidates I genuinely like. If Corbyn gets in Lloyds Holdings will be pretty low down on my list of concerns

[jackdaww]

i am holding one bank only - close bros.

its yielding 5% on my purchase price.

i cant bring myself to buy any big bank.

[monabri]

Personally think Lloyds is a screaming buy, one of the HYP candidates I genuinely like. If Corbyn gets in Lloyds Holdings will be pretty low down on my list of concerns

I agree with this...I believe that Labour will be looking at the railway networks as a priority ( and bike lanes with no right turn signs ...(JC clearly taking a left turn, no surprise there!, down a right turn only road ).

Messing about with the banks might be too sensitive, especially after bailing them out !

[monabri]

From the link

"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,”

So, not strictly 50 bank stocks!