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7 votes
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Why did the banks sell credit default swaps to Michael Burry in The Big Short?

[Skip to end for short version] The movie dumbed it down and made the banks look hapless. It was almost like the banks wrote the script. Only boy genius could figure out that the housing market ...
blankip's user avatar
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4 votes
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How was Ben Rickert able to secure an ISDA agreement?

I work with ISDAs at a large investment bank every day (since 2014, so granted, after the time period of this movie) but there is no regulatory capital requirement to enter into an ISDA. I believe the ...
creditman's user avatar
4 votes
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Why was "The Big Short" shot in the comedy genre?

The film follows in the tradition of films such as Dr Strangelove By Stanley Kubrick. In a similar way there was a realisation that the subject matter is so dark, so frightening that the only way to ...
The Wandering Dev Manager's user avatar
3 votes

Why is Michael Burry's assistant shown working at a convenience store stocking Red Bull?

Scion's closing impacted many people. During that clip you see one guy stocking shelves, one guy looks to be living out of his car, another couple of people at a job fair trying to find employment. ...
Johnny Bones's user avatar
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2 votes

CDO Manager in The Big Short?

From the real court case against Mr Chau: The SEC has charged Chau and Harding Advisory with allowing hedge fund Magnetar Capital LLC to have undisclosed influence over the selection of collateral ...
The Wandering Dev Manager's user avatar
2 votes

Why did the banks sell credit default swaps to Michael Burry in The Big Short?

Two reasons. First, banks do not generally have monolithic investment hypotheses. It is totally possible for different parts of the bank, or even different traders on the same desk, to have offsetting ...
Michael Stern's user avatar
2 votes

How was Ben Rickert able to secure an ISDA agreement?

The key line from the script is "...thank Jared for us" from Ben Rickert. They're not making a new market, they're taking some of the risk off Jared Vennett and he either agreed to waive the ...
Valorum's user avatar
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2 votes

Why did the banks sell credit default swaps to Michael Burry in The Big Short?

This is to go along with Michael Stern's answer about how different arms of a bank may act differently or seemingly independently of one another. The dialog of the scene depicting Burry discussing the ...
MattD's user avatar
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2 votes

Why did the banks sell credit default swaps to Michael Burry in The Big Short?

There's more than one bank. It's no more a contradiction to say that "the banks" knew it was coming and yet "the banks" were betting against it happening, than it's a contradiction ...
Acccumulation's user avatar
1 vote

Why is Michael Burry's assistant shown working at a convenience store stocking Red Bull?

This scene is part of a montage that plays out while Michael Burry announces that Scion Capital is closing down (as stated in the title of the linked YouTube video). The inference seems fairly clear ...
F1Krazy's user avatar
  • 22.5k
1 vote

Why did the banks sell credit default swaps to Michael Burry in The Big Short?

I think it's a stretch to say the banks knew the crash was coming. Yes in the closing moments of that bubble they could see the market start to wobble, but most bankers, most investors, most ...
gingerbreadboy's user avatar

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