Warnings of a broader banking collapse have emerged on the back of the Silicon Valley bank failure, with a financier who predicted the 2008 financial crisis warning that Credit Suisse could be next to fall after the Swiss bank’s shares plunged entirely. Low time on Tuesday.
Switzerland’s second-biggest bank, Credit Suisse, saw its shares plunge 5 percent in early trade on Tuesday to a record low for the company after confirming losses of around $8 billion (£6.6 billion) in 2022 and admitting a “material” presence. weakness” in its accounting system for financial reporting.
The bank’s books were called into question last week after the US Securities and Exchange Commission (SEC) contacted Credit Suisse to warn it that it was at risk of misrepresenting its cash flow accounting in 2019 and 2020, forcing the bank to delay its annual release. report so this week, London Times mentioned.
On Tuesday, Credit Suisse claimed the “weakness” in its books resulted from a “failure to design and maintain an effective risk assessment process to identify and analyze risks of material misstatement.”
Ulrich Korner, CEO of Credit Suisse, said that the problems facing the bank were irrelevant To the collapse of the failed Silicon Valley bank, he told Bloomberg that “the SVB credit exposure is not material,” adding, “It’s a completely different situation, we follow materially different and higher standards when it comes to funding capital and liquidity and so on.”
However, there are growing fears that the Swiss bank could be the second shoe to fall in a possible broader banking collapse. In comments provided to Breitbart London, Irish macroeconomist Philip Pilkington said it “look increasingly like a general collapse of banks likely. Losses on bonds and mortgage-backed securities (MBS) are huge. Credit Suisse may be among the weaker members of the group.” the group “.
International SVB fallout: UK and EU lenders lose £30bn overnight as ‘panic’ spreads https://t.co/tnPGchWj71
– BreitbartLondon March 11, 2023
American businessman and author Robert Kiyosaki, who correctly predicted the collapse of Lehman Brothers in 2008, which sparked a global financial crisis, also raised the alarm about the situation of Credit Suisse.
Kiyosaki: “The problem is the bond market, and my guess is, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse because the bond market is crashing.” Tell Fox Business on Monday. The bond market is much larger than the stock market. The Feds are over illusion firefighters and arsonists.”
The US dollar is losing its hegemony in the world now. So they’re going to print more and more of this… trying to keep this thing from sinking.”
“the [Federal Reserve] and the [Federal Deposit Insurance Corporation] Indicates hyperinflation which makes gold and silver better because [the dollar] garbage. They will print more and more of this fake money. This is what the Fed and the FDIC are indicating, that we will print as much of this as possible to prevent an acceleration of the crash, but they are the reason for this,” added Kiyosaki.
In an emergency move to support the US banking system over the weekend, the US government announced that it will insure all deposits at SVB and Signature Bank, including those over the $250,000 deposit insurance limit. More than 90 percent of the deposits in the SVB were greater than the insured deposit ceiling.
The government is also trying to find a buyer for SVB deposits, most likely one of the major US banks, however no buyer has yet been found.
There were reports of lines outside SVB sites as Biden tried to reassure the American public that “the banking system is safe.” pic.twitter.com/mFoKBmt53u
Breitbart News March 14, 2023
Follow Kurt Zindulka on Twitter here @tweet
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