Analyst Who Predicted Lehman Brothers Collapse Predicts Credit Suisse To Collapse Next

The back-to-back collapses of Silicon Valley Bank and Signature Bank in the US have sent ripples through the financial markets across the world. Stock markets have been bleeding, especially bank stocks after the collapse of these lenders.

Next Bank To Collapse

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And now, Wall Street analyst and investor Robert Kiyosaki, who is known for his successful prediction of the 2008 Lehman Brothers' collapse, has predicted that another big bank is set to collapse. Robert claims that Credit Suisse, Switzerland's second largest bank, is the next to fail.

Robert is also the famous author of the best-selling book 'Rich Dad, Poor Dad'.

"The problem is the bond market, and my prediction, I called Lehman Brothers (collapse) years ago, and I think the next bank to go is Credit Suisse," Kiyosaki told Fox News.

Kiyosaki said he is "concerned" about Credit Suisse, the world's eighth-largest investment bank, due to the "perfect storm" caused by the bond market crash and the upcoming retirement of his generation.

Also Read: Credit Suisse & Citi Group Halt Loans To Adani Group Companies

Views & Suggestions On Market

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He explained how the bond market will put the US in "serious trouble" as he expects the American dollar to weaken.

"The bond market is much bigger than the stock market. The Fed is up and they're the firemen and the arson," 75-year-old Kiyosaki 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," he added.

He also advised exploring or buying into silver and gold investments during a volatile market. 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 material weaknesses that have been identified relate to the failure to design and maintain an effective risk assessment process to identify and analyse the risk of material misstatements in its financial statements," the report said.

Troubles For Credit Suisse

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Robert's prediction comes amid a long list of troubles that the scandal-hit Credit Suisse has been facing for the last couple of years or so.

Credit Suisse's shares hit their new all-time low yesterday after a top investor in the embattled Swiss bank said it would not be able to provide any more cash due to regulatory restrictions. But the bank also said that it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.

Last year, Credit Suisse was fined $2.1 million in a cocaine cash laundering case when it was convicted by Switzerland's Federal Criminal Court for failing to prevent money laundering by a Bulgarian cocaine trafficking gang.

Another warning for the bank came recently when top economist Nouriel Roubini warned that Swiss lender Credit Suisse Group could be too big to be saved and that bad things can happen if it does not get capital in time. For the unaware, Roubini was among the first few to predict the 2008 financial crisis.

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