The banking crisis is not only limited to America but also intensifying in Europe. Credit Suisse, one of Europe’s biggest banks, is also on the brink of bankruptcy. Its shares fell 25 percent in a single day. Economists all over the world are worried about this.
First Published Mar 16, 2023, 7:03 PM IST
After the collapse of three banks in the US, it is now Europe’s leading bank Credit Suisse’s turn, experts say. Robert Kiyosaki, a prominent investment expert and author of the book Rich Dad, Poor Dad, said that Credit Suisse, ranked 8th among the world’s top banks, is likely to go bankrupt. He expressed concern that if Credit Suisse, one of the largest banks in Europe, goes bankrupt, there is a possibility of chaos in the world economy.
Before the financial crisis in 2008, Robert Kiyosaki was the first to predict the bankruptcy of Lehman Brothers. According to him, the collapse of Lehman Brothers was the root cause of the global depression. He said in a TV interview that there is a possibility of collapse of Credit Suisse Bank, which is worrying.
Credit Suisse Bank in Losses:
Credit Suisse Bank has been facing constant challenges for some time now. Due to the continuous fall in the share price, bank shareholders also slowly started to leave. Saudi National Bank (SNB), the largest shareholder in Switzerland-based Credit Suisse Bank with a 9.9 percent stake, has refused to invest further.
Credit Suisse Bank has lost 80% of its market value after 2021 due to several allegations of financial irregularities. Now this bank has a lot of money in the bond market. But the US bond market is in danger of collapsing. There is more money in the bond market than the stock market in America. They say that if the bond market falls, the Credit Suisse will also fall.
The American dollar is now losing value. So the government is printing more and more dollars, which creates more problems,” Kiyosaki said.Within hours of Kiyosaki’s announcement, Credit Suisse Bank admitted it was in a “significant deficit” in its financial statements.
Shares of Credit Suisse fell 30 percent
The stock market also fell on Wednesday after the collapse of Bank of America. The Dow Jones fell 500 points on Wednesday. Credit Suisse shares also fell 50%. 30 percent has fallen. This is a record low for the stock. Meanwhile, Credit Suisse Asia-Pacific co-head Neelakanta Mishra has resigned to join Axis Bank.
Meanwhile, the American tsunami in the banking sector is now taking European banks under its grip. This has an impact on banks all over the world. In the US, Silicon Valley, Signature Bank went bankrupt. About half a dozen other US banks are at risk of bankruptcy.
Last Updated Mar 16, 2023, 7:03 PM IST