Robert Kiyosaki, known for his bestseller “Rich Dad, Poor Dad", who had correctly predicted the 2008 Lehman Brothers’ collapse, has now predicted that Credit Suisse, one of Europe’s largest investment banks, is the next lender on brink of collapse.
Robert Kiyosaki's prediction came hours before Credit Suisse announced “material weakness" in its reporting procedures. According to Kiyosaki, Credit Suisse will be the next to fail due to trouble in the bond market.
As Credit Suisse’s top shareholder, Saudi National Bank, ruled out more financial assistance to the Swiss bank, the European lender's stock plummeted 29% to fall below 2 Swiss francs ($2.18) for the first time.
Credit Suisse is seeking to recover from a string of scandals that have undermined the confidence of investors and clients. Year-to-date, Credit Suisse shares have tanked 45% year-to-date.
In February, Credit Suisse reported that, in 2022, it witnessed its biggest annual loss since the 2008 financial crisis after clients pulled funds from the bank. Its wealthy clients withdrew about $100 billion in fourth quarter.
Kiyosaki had forecast the 2008 collapse of Lehman Brothers, which led to global recession. "When I predicted Lehman failing back in March 2008, people thought I was crazy. Five months later it actually happened," he said in an earlier Facebook post.
US-based Lehman Brothers was one of the largest investment banks in the US until September 15, 2008, when it declared bankruptcy. Its failure is said to have played a major role in the financial crisis of 2007–2008.
Amid volatile markets, Kiyosaki advises exploring or investing in silver and gold as a way to protect oneself. "Two Major Banks have crashed. #3 set to go. BUY real gold and silver coins now. No ETFs," Kiyosaki said in a tweet.
The bank forecast a 'substantial' loss for this year. It has also been embroiled in a number of scandals in recent years. It remains to be seen whether the Zurich-based lender will survive and what will happen if it does not.