The Rising Influence of Rising Affluence

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Robert Kiyosaki warns 3rd U.S. bank to crash, Peter Schiff says ‘bigger collapse’ ahead

https://finbold.com/robert-kiyosaki-warns-3rd-u-s-bank-to-crash-peter-schiff-says-bigger-collapse-ahead/

Kiyosaki’s warning about a third bank collapse comes as speculation around the future of another investment bank, Credit Suisse, continues to mount.

This is after the bank announced a delay in the annual report after the Securities Exchange Commission (SEC) call regarding the lender’s cash flow statements for 2019 and 2020. As a result, the bank’s shares hit a new all-time low on March 10, 2023.

Additionally, back in October 2022, Finbold reported that Graham Stephan, a real estate investor, suggested that Credit Suisse could be in a ‘critical moment’ after the bank’s credit default swaps (CDS), which is essentially insurance purchased against a potential default, costs have hit the highest level since 2008. Notably, Credit Suisse’s CDS kept growing in 2023.

Credit Suisse Default Swaps Hit Record as SVB Failure Hits Banks

https://finance.yahoo.com/news/credit-suisse-default-swaps-hit-112556220.html

Five-year credit default swaps for the Zurich-based lender jumped as much as 36 basis points on Monday to 453 basis points, according to pricing source CMAQ. They widened the most in a Bloomberg index that tracks the CDS of 125 European high-grade companies.

Shares of European banks and insurers slumped on Monday and Credit Suisse’s stock tumbled as much as 15% to a fresh record low. Even before the turbulence caused by SVB’s demise, investors were worried about Credit Suisse’s ability to put in a place a restructuring plan that will pivot it further to private lending, hive off large parts of the investment banking business, and reduce costs by cutting 9,000 jobs.

Earlier this month, Credit Suisse said it was delaying publication of its annual report following a last-minute query by US regulators over previous financial statements.

The bank is also grappling with departures across departments. At least a dozen private bankers at the managing director-level and above have left in Singapore and Hong Kong since September, or are planning to leave. That has further complicated efforts to win back assets and raised pressure on wealth head Francesco De Ferrari, who joined just over a year ago.