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Famed Short-Seller Carson Block on Why He Is Shorting Standard Chartered Bank

May 14, 2013 | About:
Canadian Value

Canadian Value

134 followers
Carson Block of Muddy Waters rose to prominence shorting U.S.-listed fraudulent Chinese companies.

I don't know if he has just run out of ideas in that sphere (unlikely) or if he is looking to spread his wings elsewhere, but he is now apparently short Standard Chartered Bank (SCBFF).

Block believes the market is underestimating the risk involved in Standard Chartered's loan book. He doesn't think that the company has sufficiently provisioned for likely loan losses.

He also focuses on the fact that Standard has increased aggressively its lending to mining companies which exposes the bank to a Chinese slowdown.

He didn't sell me on shorting this one in the interview below, even though he says that shorting Standard is a "no-brainer."





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Canadian Value
http://valueinvestorcanada.blogspot.com/

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