‘I know my Trotskyites’: Financier warns of cash exodus if Corbyn becomes PM

BRITAIN would face a mass exodus of investment if Jeremy Corbyn became prime minister, a top American financier has warned.

Wall Street fund manager Steve Eisman, who predicted the 2008 global crash and partly inspired the film The Big Short, said he would bet against British companies if the ‘Trotskyite’ Labour leader were elected.

Mr Eisman also revealed he has taken out short positions – bets that share prices will fall – against two unnamed banks because of uncertainty around Brexit. Speaking at a conference in Dubai, he predicted Parliament will reject a deal with the EU even if Theresa May succeeds in reaching one.

But he saved his strongest warning for the prospect of Mr Corbyn taking power. He said: ‘I’m shorting two stocks in the UK, but I’ve got a screen of about 50, and I might short all 50 if I think Jeremy Corbyn is going to be prime minister.

‘Corbyn’s a Trotskyite. Now, I know my Trotskyites well and I know you don’t want to be invested in the UK if a Trotskyite is prime minister.’ Mr Eisman, 56, famously made a fortune by betting against America’s sub-prime mortgage market just before it suffered a catastrophic crash in 2008.

His comments came as Theresa May told the Centre for Policy Studies thinktank the Tories needed to win the ‘battle of ideas’ to prevent the ‘calamity’ of a Corbyn government. The hard-Left’s takeover of Labour was a ‘national tragedy’, she added.

A Labour spokesman said Mr Corbyn had put forward ‘practical policies that people actually want’.