Wall Street pundit predicts Credit Suisse will be next bank to fold

A Wall Street pundit who predicted the collapse of Lehman Brothers in 2008 has revealed which bank he thinks will collapse next.

After the catastrophic Silicon Valley bank crash, Robert Kiyosaki predicted that the next bank to fold will be Credit Suisse as the volatile bond market collapses.

Kiyosaki told Cavuto: Coast to Coast, “The problem is the bond market and my prediction is that I called Lehman Brothers years ago and I think the next bank is Credit Suisse because the bond market is crashing.”

He explained while holding up a dollar bill: “The US dollar is losing its homogeneity in the world. So they’re going to print more and more of it…trying to keep the thing from sinking.’

The bond market, which is larger than the stock market, is the problem now, the expert said, and the fact that it is collapsing is unsettling many viewers.

Wall Street pundit Robert Kiyosaki warned that Credit Suisse would be next to join the plummeting bond market

Credit Suisse could be the next bank to fail, according to financial experts

He was “concerned about Credit Suisse,” he continued, despite it being a large bank with high exposure and conservative government bonds in its portfolio.

Kiyosaki — the best-selling author of Rich Dad Poor Dad — called the 2008 Lehman Brothers collapse, which exacerbated the financial crisis of the time, infamous.

He added that this is the “perfect storm” as his generation of boomers will retire: “Like I said, I think the Fed and FDIC have signaled they’re going to start printing again, which is stocks.” doing well. But this little silver coin here is still the best, it’s $35, so I think anyone can afford $35, and I’m worried about Credit Suisse.’

But he’s not the only one to see similarities with the fall of SVB and Lehman Brothers. Wall Street pundit Larry McDonald also said, “I got to see the inside of Lehman and what we just learned over the weekend about the way this bank is self-managing.

“This is just outrageous irresponsibility, and the Fed made it possible. And then when they jack up the prices, they’re basically just blowing up those bad actors.”

This comes as Switzerland’s financial regulator FINMA said Monday it wanted to identify potential contagion risks for the country’s banks and insurers following the collapse of Silicon Valley Bank and Signature Bank.

Shares in Swiss banks, along with others in the sector around the world, fell after US authorities’ actions to guarantee deposits from the two lenders failed to reassure investors.

Credit Suisse shares hit a new low, while the cost of insuring its debt against default rose to an all-time high. Shares in Swiss competitor UBS fell more than 7 percent.

“FINMA takes note of the media reports about Silicon Valley Bank and Signature Bank in the USA 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, cited the 2008 collapse of Lehman Brothers as exacerbating the financial crisis at the time

“FINMA assesses the direct and indirect risk of the banks and insurance companies it supervises vis-à-vis the institutions concerned,” it said. “The aim is to identify possible cluster risks and potential for infection at an early stage.”

The regulator said it was in contact with various institutions that could be affected, but declined to name them or state the actions it might take.

President Joe Biden vowed on Monday to do whatever it takes to address the banking crisis sparked by the collapse of the two lenders, forcing regulators to step in with emergency measures to contain the contagion.

FINMA said it was also monitoring any spillovers from the failure of another tech-focused US bank, Silvergate Capital Corp, which said on Wednesday it plans to go out of business and liquidate voluntarily.

The regulator said its oversight work focused on managing the risk of supervised institutions and dealing with different scenarios.

The bond market, which is larger than the stock market, is the problem now, the expert said, and the fact that it is collapsing is unsettling many viewers

The Federal Department of Finance said it “takes note of the reports on US banks and stock market developments” but will not comment further.

The government department also pointed to the role of FINMA, saying: “FINMA closely monitors Credit Suisse as part of its supervisory activities.”

The Swiss National Bank declined to comment on the impact the collapse of the SVB could have on the Swiss financial sector.

In a further sign of investor concerns about Credit Suisse’s prospects, the price of some of its bonds fell sharply, with some hitting record lows.

To recover from a series of scandals, Switzerland’s second-largest bank has embarked on 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 would delay the release of its annual report following a call from the US Securities and Exchange Commission.