KEY POINTS
- Credit Suisse’s shares continue to plunge after the collapse of startup-focused Silicon Valley Bank
- Robert Kiyosaki said the bond market is “crashing,” possibly leading to the fall of Credit Suisse
- Credit Suisse’s shares reportedly fell over 12% Tuesday
Investor Robert Kiyosaki, who called the 2008 Lehman Brothers collapse, has predicted that Credit Suisse will hit insolvency next following startup-focused Silicon Valley Bank’s closure, as the embattled Swiss lender’s shares continue to plunge.
“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,” Kiyosaki, co-founder of the Rich Dad Company, said on Fox Business host Neil Cavuto’s “Cavuto: Coast to Coast” Monday.
The Wall Street analyst added that the bond market, where investors go to trade debt securities, will put the U.S. in “serious trouble” as the American dollar could possibly weaken in the coming weeks.
“The U.S. dollar is losing its homogeny in the world right now. So they’re going to print more and more and more of [dollar bills], trying to keep this thing from sinking,” Kiyosaki said.
He went on to express concern over pension plans and individual retirement accounts (IRAs) in the current market environment and said that the American taxpayer will be hit hardest by bank bailouts. He advised exploring or buying into silver and gold investments amid hyperinflation and printing more money.
“My generation, the boomers, we’re trying to retire. So this is the perfect storm in many ways,” Kiyosaki said. “Like I said, again, I think the Fed and the FDIC signaled they’re 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.”
Credit Suisse shares hit a new record low on Switzerland’s stock exchange Tuesday, according to a Reuters report. The bank’s shares reportedly fell over 12% and were trading at 2.20 Swiss francs ($2.41) per share, down from a previous low of 2.41 Swiss francs ($2.64) Friday.
The lender is down almost 20% year to date, per the outlet, as its U.S. dollar perpetual bonds decline between five and ten cents on the dollar, Reuters reported, citing Refinitiv Eikon data.
On Thursday, Credit Suisse reported a $1.5 billion loss for the fourth quarter of 2022, as investment banking revenues slumped and clients pulled money from the group’s wealth management business, the Financial Times reported.
According to the outlet, customers of the bank withdrew 111 billion Swiss francs ($121.6 million) in the final three months of last year, after the Swiss bank was embroiled in controversies regarding its financial health in October 2022.
The situation reportedly prompted Credit Suisse to restructure its business, axing around 9,000 of its 52,000-strong workforce, per the Financial Times.
“This is a year when it bears a large brunt of the restructuring expenses out of our strategic plan,” Credit Suisse chief financial officer Dixit Joshi said, per the outlet.
Kiyosaki’s comments came days after California-based lender SVB, best known for providing financing to startups, collapsed Friday after liquidity concerns triggered a huge bank run.
U.S. financial regulators announced that customers of the failed bank would get access to all their money starting Monday. Authorities also guaranteed deposits for customers of New York-based lender Signature Bank, which was shut down by regulators Sunday because it had faced financial trouble in recent days.
