Shares in Credit Suisse continued to tumble on Wednesday after its biggest backer said it can no longer put up more money.
The bank’s share price hit a new record low after the bank’s largest investor, Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance.
“We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters on Wednesday.
Now Robert Kiyosaki, who accurately predicted the 2008 Lehman Brothers’ collapse, warned that the bank could be the next to go under as the volatile bond market crashes, with rising interest causing bonds to fall in price.
Speaking on Cavuto: Coast to Coast, Kiyosaki said: “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.”
Holding up a dollar bill, he added: “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 made the prediction just hours before Credit Suisse admitted it has a “material weakness”.
In its annual report, the bank said it was adopting a remedy plan after it found its reporting procedures for the fiscal 2021 and 2022 years were “not effective”.
But the bank’s chief executive Ulrich Koerner told a financial conference: “Our SVB credit exposure is not material”.
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