We were lucky to have Steven Eisman (the Big Short himself) with us on 25 March. He met with a few CFA charter holders in Dubai. He is experienced, articulate, bold and perceptive. Some comments ( not verbatim): 1. Executives mistook leverage for genius 2.Daniel Tarullo was the defacto US Chief bank regulator from 2011 till 2017 and he crushed leverage. As a result the US banking system is much safer 3. No idea where the next crisis will come from. But one issue in the next crisis: Dealers hold much less bonds now and hence sellers won’t get good prices 4. Three lessons learnt from the GFC: Paradigms last longer than they should, Incentives trump ethics and regulation matters and changes in regulation matter even more 5. The biggest risk is political. Warren is a very smart politician and if she ( or someone like her) gets elected things will change big time. Big tech will be regulated or broken up. Pharma and banks will be regulated. Stocks will crash. 6. Europe? You could live without it 7. European banks’ ROE is too low and they’re trying to increase this by leverage. Eg Deutsche is a terribly run bank , has a ROE of 0.1% and is leveraged 25:1. Highly insightful session with lots of positive feedback.