Credit Suisse shares fall to all-time low as bank announces it has found ‘material weakness’ – just hours after Wall Street expert predicted that it would be the next to fall after SVB

Credit Suisse has confirmed ‘material weaknesses’ in its business, just hours after a Wall Street expert who accurately predicted the 2008 collapse of Lehman Brothers warned that it may be the next financial institution to fall. Last night, Robert Kiyosaki — an investor and author of Rich Dad, Poor Dad – warned during an appearance on Fox Business, that ‘the problem’ is the bond market.

‘My prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse because the bond market is crashing. The bond market is much bigger than the stock market.

‘The fed is up and they’re the firemen and the arson,’ he said. On Tuesday morning, Credit Suisse published its annual report which revealed an $8billion loss for 2022. The bank had been due to publish the report last Thursday, but was sent back to review its books by the SEC. Today, Credit Suisse said the ‘weaknesses’ was down to a ‘failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements’.

Credit Suisse CEO Ulrich Koerner has however insisted that the ‘SVP credit exposure is not material’. Insiders also say Credit Suisse – the seventh largest investment bank in the word – is more highly regulated than SVP was, so is ‘conservatively positioned against any interest rate risks.’ Kiyosaki said the current situation is the ‘perfect storm’. He maintains that gold and specifically silver are the safest investments now.

‘Like I said, again, I think the Fed and the FDIC signaled they’re going to print again, which makes stocks good. But this little silver coin here is still the best, it’s 35 bucks, so I reckon anybody can afford $35, and I’m concerned about Credit Suisse.’ The five-year credit default swaps for Credit Suisse have since soared 446 basis points since the SVB crash, according to finance analyst Holger Zschäpitz.

This comes as Swiss financial regulator FINMA on Monday said it was seeking to identify any potential contagion risks for the country’s banks and insurers following the collapses of Silicon Valley Bank and Signature Bank . ‘FINMA takes note of the media reports on Silicon Valley Bank and Signature Bank in the USA and is closely monitoring the situation,’ FINMA said in a statement.

‘FINMA is evaluating the direct and indirect exposure of the banks and insurance companies it supervises to the institutions concerned,’ it said. ‘The aim is to identify any cluster risks and potential for contagion at an early stage.’ The regulator said it was in contact with various institutions which could be affected, but declined to name them or the measures it might take.

President Joe Biden pledged on Monday to do whatever was needed to address the banking crisis precipitated by the collapse of the two lenders which forced regulators to step in with emergency measures to stem contagion.

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