Background
Eisman grew up in New York City, where he attended Yeshiva schools.
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Steve Eisman
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He attended the University of Pennsylvania, graduating magna cum laude in 1984. He then graduated Harvard Law School with honors.
Career
Eisman rose to fame betting against subprime mortgages at Greenwich, Connecticut-based Limited Liability Company, a unit of Morgan Stanley. By 2010, he managed more than $1 billion for FrontPoint, and gained prominence after being profiled by Michael Lewis in his book The Big Short: Inside the Doomsday Machine. In the movie adaptation of Lewis" book, The Big Short, Eisman"s name was changed to Mark Baum, and was portrayed by Oscar-nominated actor Steve Carell.
In 2012, Eisman founded with $23 million in seed capital.
In July 2014 he announced that he was shutting down the fund, explaining his decision by stating that "making investment decisions by looking solely at the fundamentals of individual companies is no longer a viable investment philosophy." The fund controlled an estimated $185 million in assets at the time of its dissolution. The fund performed badly in 2012, returning 3.6% and underperforming the market.
lieutenant did better in 2013, returning 10.8% but still underperforming the market. Eisman is a strong opponent of for-profit institutions of higher education.
During a speech entitled "Subprime Goes to College" during the Ira Sohn Conference in May 2010 Eisman attacked companies that run private colleges such as Think International Telephone And Telegraph Educational Services, Corinthian Colleges, and Education Management Corporation.
Eisman likened such companies to seamy mortgage brokers. From his presentation:
"Until recently, I thought that there would never again be an opportunity to be involved with an industry as socially destructive and morally bankrupt as the subprime mortgage industry. I was wrong. The for-profit education industry has proven equal to the task."
After the Department of Education took action against for-profit colleges in 2010, the industry retaliated by accusing Eisman of attempting to illegally influence the government and calling for an investigation by the Secretary of Education.
The allegations stem from a meeting that Eisman had with Department of Education officials David Bergeron and Robert Shireman, two weeks before delivering his speech at the Ira Sohn Conference.
Shireman was in charge of the department"s efforts to toughen regulations on for-profit colleges. After offering testimony to Senate Health, Education and Labor Committee on problems with for-profit higher education, Eisman was criticized by progressive groups such as Citizens for Responsibility and Ethics in Washington on the grounds that he stood to profit from proposed regulations due to his short positions against private colleges.
After a series of legal challenges by state and federal agencies, on April 26, 2015 Corinthian Colleges announced that they would cease operations at all remaining United States locations effective April 27, 2015. The closure affected more than 16,000 students and employees.
On May 4, 2015, Corinthian Colleges, Incorporated. and 24 of its subsidiaries filed a chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware.
