In this series, we suggest worthwhile reading material on a variety of topics, not all of which are directly related to investing. The Big Short: Is the next financial crisis on its way? – The Guardian, November 19, 2016. Steve
The Wall Street Journal reports that Morgan Stanley may soon complete a deal to relinquish control of in-house hedge fund firm FrontPoint Partners which currently has $7 billion in assets. This move is motivated by a number of factors including the impact of new restrictions in the financial regulatory bill signed into law by President Obama last month, Morgan Stanley CEO James Gorman’s desire to reduce proprietary investing risks, and conflicts that have emerged due to bearish views expressed by FrontPoint regarding Morgan Stanley clients.
Steve Eisman’s accurate predictions during the subprime mortgage bubble, as profiled in The Big Short, have prompted investors to take notice regarding his recent criticism of the economic model of for-profit universities. Mr. Eisman’s presentation at the Ira Sohn Investment Research Conference focused on the similarities between the subprime bubble that imploded in 2007 and the current popularity of for-profit universities. Read this article for more details.