Even as financial markets across the world, particularly in the US, are still reeling under the collapse of Silicon Valley Bank and Signature Bank, a noted Wall Street analyst has predicted which bank is likely to collapse next.
Robert Kiyosaki, an investor, author, and Wall Street analyst who predicted the collapse of Lehman Brothers in 2008, believes that Credit Suisse is on the verge of collapse.
"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," Fox Business quoted him as saying.
Dubbing the bond market, the "biggest problem" of the economy, he said it will put the US in "serious trouble."
He observed that the US is printing more currency to keep the dollar from sinking. "The US dollar is losing its hegemony in the world right now. So they are going to print more and more and more of this (dollar bill), trying to keep this thing from sinking."
"Like I said, again, I think the Fed and the FDIC signaled they are 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," Kiyosaki, the author of 'Rich Dad, Poor Dad', was quoted as saying.
On Tuesday, Credit Suisse published its annual report for 2022 saying it had identified "material weaknesses" in controls over financial reporting and not yet stemmed customer outflows.
Shares of Credit Suisse fell to record lows after its biggest shareholder Saudi National Bank said it could not go above 10 per cent ownership due to a regulatory issue.
The shares fell by more than 20 per cent following the announcement of Saudi National Bank.
“Markets are wild. We move from the problems of American banks to those of European banks, first of all Credit Suisse," Reuters quoted Carlo Franchini, head of institutional clients at Banca Ifigest in Milan as saying.