Shares of Credit Suisse fell by 5% Tuesday morning, hitting an all-time low at one point, in the aftermath of the failure of Silicon Valley Bank.
The Swiss lender announced it had “material weakness” in its financial reporting for 2021 and 2022, leading to shares falling in morning trading.
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The admission from the financial institution came a week after they delayed the release of their 2022 annual report after receiving a “late night call” from the Securities and Exchange Commission “in relation to certain open SEC comments about the technical assessment of previously disclosed revisions to the consolidated cash flow statements” from 2020 and 2019, per a press release.
The company announced in its annual report a loss of 7.3 billion Swiss francs, or roughly $8 billion, for the full year of 2022. It also stated that in the fourth quarter of 2022, the bank “began experiencing significantly higher withdrawals of cash deposits as well as non-renewal of maturing time deposits.” Credit Suisse said that “outflows stabilized to much lower levels” as the quarter went on but that they had “not yet reversed by year end.”
Credit Suisse’s vulnerability and troubles with the bond market have caused some analysts and investors to have concerns about the bank’s future.
Rich Dad Company co-founder Robert Kiyosaki predicted that Credit Suisse would be the next bank to fall on Fox Business Network’s Cavuto Coast-to-Coast on Monday.
“My generation, the boomers, we’re trying to retire. So this is the perfect storm in many ways,” Kiyosaki said on the program. “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.”
Kiyosaki predicted the 2008 collapse of Lehman Brothers.
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The uncertainty in the markets was set off by the failure of Silicon Valley Bank on Friday and the subsequent collapse of Signature Bank on Sunday.
President Joe Biden addressed the recent banking failures in a speech on Monday by attempting to reassure the country that the “banking system is safe.”
