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Attendees will include market constituents based in the US and other major jurisdictions, such as Asia, Europe, Russia and Eastern Europe, Latin America, Mexico, South America, Canada and Australia. But perfectly legal, he said. We were big, and thought that we were big enough. Not only did he not care, he went out of his way to preempt others from doing anything, he said. When Greg Lippmann arrived in Steve Eisman's conference room in midtown Manhattan, Eisman surprised him by saying, "We're not the FrontPoint that is long New Century stock. He quickly makes a name for himself as an analyst by proving that he isnt afraid to offer opinions that go against the grain. His audacious gamble is recounted in the 2015 movie "The Big Short," in which the actor Steve Carell plays a Mark Baum, a fictionalized version of Eisman. Steve Carell portrayed Eisman in the 2015 film adaptation of Lewis's book. Why would you talk to Dugan? PDF Executive Summary The Big Short - Adventures in CRE It did change the culture to a significant degree, and [it changed the ethic to] Ill do whatever I can to get my bonus this year, he said. As protagonist Steve Eisman, who made a fortune on swaps, tells Lewis, nobody knows how many bets are still counting on those failures. . And when they began that, they didnt really understand that they were selling CDS on subprime paper. So the whole Street was creating CDOs and laying off the triple-A risk onto AIG. Everyone was so levered there was no ability to take any pain and the rating agencies were told that the ratings were all wrong. There werent that many people. Copyright 2023 Asset International, Inc. All Rights Reserved. "Being short in 2007 and making money from it was fun, because we were short bad guys," said Steve Eisman. Spouse. The author goes on to describe the odd activity in the market in the first half of 2007 and how the Wall Street firms manipulated and misinformed Burry . Twenty minutes later he called back, said $30 million at 195, and that was the end of the conversation. Mr. Eisman laughed and said, ya. In 2008 it was the entire financial system that was at risk. His mind was now fully open to the possibility. He [Mr. Chau] was running $15 billion worth of stuff, he did not own any tranches of the deals, and he made 15 basis points to manage the deal. How it happened - Las Vegas Sun Newspaper So youre the [Chief Risk Officer] and the person who youre laying off risk to says no mas, well you say, find someone else. And they did AMBAC, MBIA, ACA and the problem is theyre not big enough to replace AIG. We didnt need to go out and do more.. Detailed quotes explanations with page numbers for every important quote on the site. "In 2008 it was the entire financial system that was at risk. She understood everything that was still going on. Mr. Eisman said that Ms. Weaver might still be at Deutsche Bank, but that he does not know one way or the other. Date of Event: April 22, 2010 10:00 a.m. 12:00 p.m. So theres a higher demand for subprime than usual. We were still short. cookies But the biggest lag of all was right here, on the streets. Chris asked what the nature of that interaction was, and Mr. Eisman explained that they met in connection with a deal involving shorting CMBS in 2007.