A Wall Street pundit who predicted the collapse of Lehman Brothers in 2008 has revealed which bank he thinks will go down next.
In the aftermath of the disastrous fall of Silicon Valley Bank, Robert Kiyosaki predicted that the next bank to fail is Credit Suisse when the volatile bond market crashes.
Kiyosaki told Cavuto: Coast to Coast: “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 explained, while holding a dollar bill: ‘The US dollar is losing its homogeneity in the world right now. So they’re going to print more and more and more of this… trying to keep it from going under.
The expert said that the bond market, which is bigger than the stock market, is now the problem, and the fact that it is collapsing is disconcerting to many onlookers.
Wall Street expert Robert Kiyosaki has warned that Credit Suisse is next to follow the bond market plunge.
Credit Suisse may be the next bank to close, say financial experts
He went on to say that he is “concerned about Credit Suisse,” despite being a large bank with high exposure and conservative Treasuries in its portfolio.
Kiyosaki, the best-selling author of Rich Dad Poor Dad, infamously called the collapse of Lehman Brothers in 2008, which deepened the financial crisis of the time.
He added that this is the ‘perfect storm’ as his generation of boomers will retire: ‘As I said, again, I think the Fed and FDIC have signaled that they are going to print again, which makes stocks good. But this little silver coin here is still the best, it’s $35, so I figure anyone can afford $35, and I’m worried about Credit Suisse.
But he is not the only one who has seen similarities with the fall of SVB and Lehman Brothers. Wall Street expert Larry McDonald also said: “I looked inside Lehman and what we learned over the weekend about the way this bank ran itself.”
It’s just shocking irresponsibility and the Federal Reserve allowed it. And then when they raised the rates, they’re essentially just exploiting these bad actors.”
This comes as Swiss financial regulator FINMA said on Monday it was trying to identify any potential contagion risks for the country’s banks and insurers following the collapses of Silicon Valley Bank and Signature Bank.
Swiss bank shares tumbled along with others in the sector globally after moves by US authorities to guarantee deposits for the two lenders failed to reassure investors.
Credit Suisse shares hit a new low, while the cost of insuring its debt against a default rose to an all-time high. Shares of Swiss rival UBS fell more than 7 percent.
“FINMA takes note of the media reports on Silicon Valley Bank and Signature Bank in the US and is closely monitoring the situation,” FINMA said in a statement.
Kiyosaki (right) pictured with Donald Trump in 2006
Kiyosaki – the best-selling author of Rich Dad Poor Dad, infamously called the Lehman Brothers collapse in 2008, which deepened the financial crisis of the time.
“FINMA is evaluating the direct and indirect exposure of the banks and insurance companies that it supervises to the institutions in question,” it said. “The goal is to identify any cluster risk and contagion potential at an early stage.”
The regulator said it was in contact with a number of institutions that could be affected, but declined to name them or what action it might take.
President Joe Biden vowed Monday to do whatever is necessary to address the banking crisis precipitated by the collapse of the two lenders that has forced regulators to step in with emergency measures to stem the contagion.
FINMA said it was also monitoring the spillover effects of the bankruptcy of another US technology-focused bank, Silvergate Capital Corp, which said on Wednesday it planned to shut down its operations and liquidate it voluntarily.
The regulator said its supervisory activities focused on risk management of supervised institutions and dealing with various scenarios.
The expert said that the bond market, which is bigger than the stock market, is now the problem, and the fact that it is collapsing is disconcerting to many onlookers.
The Swiss Federal Department of Finance said it “takes note of the reports on US banks and the development of stock markets” but would not comment further.
The government department also pointed to FINMA’s role, saying that “FINMA is closely monitoring Credit Suisse as part of its supervisory activities.”
The Swiss National Bank declined to comment on the effect that the collapse of SVB could have on Switzerland’s financial sector.
In a further reflection of investor concern about Credit Suisse’s prospects, the price of some of its bonds fell sharply, with some hitting record lows.
Struggling to recover from a series of scandals, Switzerland’s second-largest bank began 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.
Last week it announced that it was delaying the release of its annual report following a call from the US Securities and Exchange Commission.
