Michael Burry, whose name still carries significant weight in the financial industry, is no stranger to having a strong opinion about the nation’s biggest banks.
Many think of Burry, who was one of the featured players in both the book and movie "The Big Short," as a bit of a seer because he’s one of the few that saw the financial crisis coming before anyone else.
Earlier this year, Burry made waves with an interview with New York Magazine, in which he shared his views on the run-up to the financial crisis, the aftermath of it, and where things stand now.
Burry shared his opinions of the country’s biggest banks in that interview, telling New York Magazine:
The biggest hope I had was that we would enter a new era of personal responsibility. Instead, we doubled down on blaming others, and this is long-term tragic. Too, the crisis, incredibly, made the biggest banks bigger. And it made the Federal Reserve, an unelected body, even more powerful and therefore more relevant.
Now, Burry is putting his money where his mouth is.
According to a report from Yahoo Finance, Burry’s hedge fund, Scion Asset Management, completely dumped its position on several of the big banks during the first quarter.
The Yahoo Finance report stated that Scion bailed on Bank of America, Citigroup, and Bank of New York Mellon in the first quarter.
Time will tell if Burry’s bet is proven right again, but if he’s dumping out of the big banks, maybe it’s because he knows something we don’t.
And that’s never happened before.
