Ben Hockett: How a Berkeley Recluse Shorted the Housing Market

Ben Hockett: How a Berkeley Recluse Shorted the Housing Market

Who is Ben Hockett? How was he involved in the “big short” that profited from the 2008 financial crisis? Ben Hockett is a former Deutsche Bank trader who left Wall Street behind to trade derivatives from his home in Berkeley Hills. In 2006 he worked with investment company Cornwall Capital to short the housing market and profit from the 2007-2008 subprime mortgage crisis. In the movie The Big Short, Brad Pitt’s character Ben Rickert is based on Ben Hockett. We’ll cover Ben Hockett’s background, his major role in getting Cornwall Capital the recognition it needed to be a player on

Specialty Finance: What It Is, Who It’s For, and Why It’s Risky

Specialty Finance: What It Is, Who It’s For, and Why It’s Risky

What is specialty finance? What does it offer, and how is it risky? Did specialty finance loans contribute to the 2008 financial crisis? Specialty finance is the euphemistic name of financial industries that provide financial products and services to the least-creditworthy Americans, people who wouldn’t be able to get a loan from a traditional bank. Learn how the industry of specialty finance became lucrative and how its preying on uncreditworthy Americans contributed to the 2008 financial crisis.

What Is a Tranche in Finance? The Simple Definition

What Is a Tranche in Finance? The Simple Definition

What is a tranche in finance? How did they change the mortgage-backed securities market and make subprime loans desirable to investors? A tranche is a slice or portion of a security sold to investors. Learn how tranches work in finance, what their role in mortgage-backed securities is, and how they revolutionized these securities so quickly and dramatically that they laid the groundwork for the 2008 financial crisis.

Steve Eisman’s “Big Short” (and the Morality of Investing)

Steve Eisman’s “Big Short” (and the Morality of Investing)

Who is Steve Eisman, of The Big Short fame? What is his background in finance, and how did he profit from the 2008 financial crisis? Steve Eisman is an investor best known for having shorted the housing market and profiting from the 2007-2008 financial crisis. In the film The Big Short, Steve Carell’s character Mark Baum was based on Steve Eisman. We’ll cover Steve Eisman’s background, his brash personality, and how he shorted the housing market.

AIG Bailout in 2008: The Fate of a Giant Too Big to Fail

AIG Bailout in 2008: The Fate of a Giant Too Big to Fail

How did the actions of AIG lead to the 2008 crisis that affected millions of Americans? Did AIG know the role it was playing in the catastrophe, or was it ignorant of the wider implications of its business practices? And who paid the price for AIG’s bailout? We’ll cover how AIG insurance company (American International Group) aided banks in the events that would lead to the 2008 financial crisis and the results of the 2008 AIG bailout.

Side Pocketing in Hedge Funds: What It Is (And How Investors Benefit)

Side Pocketing in Hedge Funds: What It Is (And How Investors Benefit)

What is “side pocketing” in relation to hedge funds? Why would a fund manager need or want to “side pocket” investors’ money? Is it legal? Side pocketing is when a hedge fund manager temporarily refuses to let investors withdraw their money. We’ll cover how side pocketing actually benefitted investors in hedge fund Scion Capital, profiled in the book and movie The Big Short.