’Perfect storm’: Next bank to fall predicted

Speaking on Cavuto: Coast to Coast, Mr Kiyosaki said that Credit Suisse is the next bank at risk of collapse due to the volatile bond market.

Mr Kiyosaki is “concerned about Credit Suisse” due to the “perfect storm” caused by the bond market crash and the upcoming retirement of his generation of baby boomers.

“The problem is the bond market, and 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,” he said.

“The US dollar is losing its hegemony in the world right now. So they’re going to print more and more and more of this… trying to keep this thing from sinking.”

Mr Kiyosaki’s prediction came just hours before Credit Suisse admitted to a “material weakness” in its reporting procedures for the 2021 and 2022 fiscal years. The bank’s inability to design and maintain effective risk assessments in its financial statements is a cause for concern, and the bank is now adopting a remedy plan.

This news follows the recent collapse of Silicon Valley Bank and Signature Bank, which has left Swiss financial regulator FINMA closely monitoring the situation for potential contagion risks.

Shares in Swiss banks have slumped along with others in the sector globally, with Credit Suisse’s shares hitting an all-time low and the cost of insuring its debt against default rising to an all-time high.

Mr Kiyosaki explained that the bond market, which is bigger than the stock market, is crashing, and this is the main problem. As the US dollar loses its hegemony in the world, Mr Kiyosaki believes the Federal Reserve and Federal Deposit Insurance Corporation will print more money to prevent the sinking of the dollar.

Credit Suisse‘s struggle to recover from a string of scandals has prompted the bank to begin a major overhaul of its business, cutting costs and jobs and creating a separate business for its investment bank under the CS First Boston brand. The bank’s annual report was already delayed after US regulators raised queries about it, but the content of these issues has not been disclosed.

The recent news about Credit Suisse‘s “material weakness” has raised investor concerns about the bank’s outlook, with some of its bonds falling sharply in price, hitting record lows.

But Credit Suisse’s CEO, Ulrich Koerner, has attempted to cool the tension, stating that the bank is more highly regulated than SVB in the US and is conservatively positioned against any interest rate risks.