Credit Suisse shares fell five percent to an all-time low in early trading and in Europe on Tuesday after the bank confirmed material weaknesses and an $8billion loss in 2022, just hours after a financial expert claimed it would be the next institution to fall following SVB.
Last night, Robert Kiyosaki – a metals investor and author of Rich Dad, Poor Dad who accurately predicted the 2008 fall of Lehman Brothers – warned during an appearance on Fox Business, that ‘the problem’ is the bond market, and that Credit Suisse – the eighth largest investment bank in the world- was most vulnerable.
‘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.
Shares held steady on the NYSE once trading began, flattening to around $2.54 – a marginal improvement on the morning’s low of $2.44 but woefully less than where it stood a year ago, when they traded at above $7.
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Today, Credit Suisse said the ‘weaknesses’ were down to a ‘failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements’.
Despite Kiyosaki’s stark warnings and the panic caused by the collapse of SVB last week, other Wall Street experts are urging caution and calmness.
A criminal case trial against Credit Suisse for cocaine trafficking has begun in Switzerland. Despite strong indications that the funds were of criminal origin, a former Credit Suisse official carried out conducting transactions for the ring.
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