Is Credit Suisse about to collapse?

[OmegaMan]

Is Credit Suisse about to collapse? Bank admits “material weakness” as shares plunge and investors panic

Thursday, March 16, 2023 by: Ethan Huff

Tags: bank run, banks, Collapse, contagion, Credit Suisse, debt bomb, dollar demise, economic collapse, Federal Reserve, fiat, finance riot, Inflation, interest rates, Lehman Brothers, material weakness, money supply, pensions, risk, Silicon Valley Bank, SVB



This article may contain statements that reflect the opinion of the author


(Natural News) The latest bank on the chopping block appears to be Credit Suisse, a Swiss bank whose shares plunged this week after the company announced a “material weakness” problem with its operations.



Shares in Credit Suisse fell to an all-time low this week following the announcement, which came just days after Silicon Valley Bank (SVB), Signature Bank, First Republic, and Pac West entered a financial death spiral from the contagion.



Switzerland’s second-largest bank, Credit Suisse confirmed some $8 billion in losses in 2022 because of the material weakness. Now, the United States Securities and Exchange Commission (SEC) is warning the bank that it is in jeopardy of providing a misstatement over the accounting of cash flows in 2019 and 2020, which is why it delayed its annual report until this week.



According to Credit Suisse, the “weakness” in its books stems from a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements.” In other words, Credit Suisse is a poorly run bank that likely committed all kinds of fraud that were ignored or overlooked because had it been exposed, the company would have gone kaput a long time ago.


U.S. dollar “losing its hegemony,” says expert who correctly predicted 2008 financial crisis – hyperinflation soon to come


CEO Ulrich Koerner says the trouble his bank faces are completely unrelated to the collapse of SVB – do you believe him? – explaining to the corporate-controlled media in a recent statement that “SVB credit exposure is not material.”



“It’s a very different situation,” Koerner went on to state. “We are following materially different and higher standards when it comes to capital funding, liquidity and so on.”



Despite this hollow reassurance, many are deeply concerned that Credit Suisse will be the next shoe to drop in the inevitable banking collapse that, quite frankly, has been a long time coming.



It “looks increasingly like a possible general meltdown of banks,” commented Irish macroeconomist Philip Pilkington about the matter. “Losses on bonds and mortgage-backed securities (MBS) are huge. Credit Suisse may just be amongst the weaker members of the pack.”



American entrepreneur and author Robert Kiyosaki, who correctly predicted the collapse of Lehman Brothers in 2008, which we know was the spark that set off the global financial crisis at that time, holds a similar view about Credit Suisse.



“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,” Kiyosaki told Fox Business this week. “The bond market is much bigger than the stock market. The Fed is up and they’re the firemen and the arson.”



“The U.S. dollar is losing its hegemony in the world right now,” he added. “So they’re going to print more and more and more of this … trying to keep this thing from sinking.”



“The [Federal Reserve] and the [Federal Deposit Insurance Corporation] are signaling hyperinflation, which makes gold and silver even better because [the dollar] is trash. They are going to print more and more of this fake money. This is what the Fed and the FDIC are signaling, that we are going to print as much of this as possible to keep the crash from accelerating, but they are the guys causing it.”



The Swiss Central Bank has indicated that it will “backstop” Credit Suisse, much like the FDIC is doing here in the U.S. with SVB, to try to stop the bleeding.

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[OmegaMan]

If Credit Suisse implodes, it will be far worse than the SVB collapse – the European economy will fall off a cliff

Thursday, March 16, 2023 by: Ethan Huff

Tags: bank, bank failure, banking, Collapse, Credit Suisse, currency crash, debt bomb, economy, Europe, European economy, finance, government debt, Inflation, interest rates, market crash, money supply, Silicon Valley Bank, SVB



This article may contain statements that reflect the opinion of the author


(Natural News) It is looking increasingly likely that Swiss banking giant Credit Suisse will be the next big bank to fall, in which case the European economy will fall off a cliff, according to Bloomberg Markets Live reporter and strategist Ven Ram.



Europe will be the first to feel what Ram ominously described as an upending of the global financial system, resulting in major central banks bringing their policy tightening “to a screaming halt.”



“Unlike Silicon Valley Bank and Signature Bank, the Swiss lender is classified as systemically important by the U.S. Financial Stability Board – meaning it’s too big to fail as a collapse has the potential to trigger a financial crisis,” Ram explained.



On Wednesday, March 15, European Central Bank officials made contact with lenders to ask about their financial exposure to Credit Suisse. The bank reported that its assets under manage are nearly 1.3 trillion Swiss francs, or the United States equivalent of around $1.4 trillion. This amounts to nearly 10 percent of the 14.5 trillion euro-area economy.



This announcement resulted in an immediate spike in Credit Suisse’s 1yr Sr CDS, which represent the cost of insuring the bank’s debt against default for another year, by a record 2,728 basis points. Conversely, the company’s shares tumble to a record low while its bonds plunged to levels that Ram said are “typically associated with distress.”



All of this occurred following comments made by Saudi National Bank, which is Credit Suisse’s top shareholder. That bank announced that it has no intention of investing any more money into the Swiss lender, which is currently in the throes of a complex three-year restructuring that aims to return Credit Suisse back to profitability. (Related: Be sure to check out our earlier coverage about the financial “death spiral” that has been triggered following the collapse of SVB.)


Will bank failure contagion continue to spread?

Back in the United States, the Federal Reserve has been working overtime to quell fears about a banking collapse stateside following the implosion of Silicon Valley Bank (SVB) and numerous other mostly “woke” banks that have crashed and burned in recent days.



The Fed unveiled a brand-new term-funding program in which banks can borrow against bonds that may have lost value at 100 cents on the dollar. This “backstop,” as they are calling it, is presumably aimed at other struggling banks like SVB that sunk quickly after the Fed started raising interest rates.



How this will all affect the European economy remains to be seen, especially after UBS Group AG chief executive officer Ralph Hamers refused to answer “hypothetical questions” about its Swiss rival. Instead, Hamers indicated, UBS is “focused on our own strategy.”



As for Credit Suisse, CEO Ulrich Koerner is begging for patience, claiming that the bank’s CET1 capital ratio of 14.1 percent in the fourth quarter and a liquidity coverage ratio of 144 percent, which was since increased to about 150 percent on average, will be enough to bail the bank out of sinking sand.



“For policymakers in Europe and the U.S., though, what is at stake here is an entity that has a far greater domino effect in its ability to damage sentiment than Silicon Valley Bank and Signature Bank combined,” Ram said.


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In the comments, someone wrote the following analogy to describe how all this banking calamity is making him feel:



“You know that weird feeling you get in your gut as the roller coaster crests the first hill and starts to drop down the other side? I just had that.”



The corrupt globalist banking empire is coming apart at the seams