Steve Eisman said that he's staying away from bank stocks due to risks from interest margins and regulations.
Steve Eisman, the investor who called and profited from the subprime mortgage crisis, said Thursday that he's staying away from bank stocks due to risks from crimped margins and tougher regulations. "I happen to think the whole bank sector is uninvestable," Eisman, senior portfolio manager at Neuberger Berman, said on CNBC's " Squawk Box. " The first reason for Eisman's bearish thesis is the continuous deposit outflows.
Banks are also feeling pressure to raise rates it pays on deposits in order to keep their depositors from jumping ship. The SPDR S & P Regional Banking ETF , which tracks 140 regional banks, has fallen more than 33% this year. Secondly, the widely followed investor said the new regulations in place to raise debt levels are not helping the situation.
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