Fears that the U.S. banking crisis could go global widened early Tuesday as lending giant Credit Suisse shares plunged on news its delayed annual report found “material weaknesses” in its balance sheet over the last two years.
Shares in the Zurich-based international financial giant dropped nearly 5% to an all-time low in pre-market trading after the report released on Tuesday acknowledged its biggest annual loss since the 2008 financial crisis and said customer withdrawals surged beginning in the fourth quarter of last year. Bank stocks have been hammered since last week’s collapse of Silicon Valley Bank and the smaller, New York-based Signature Bank.
“’They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD’s wrath …” Ezekiel 7:19
“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,” investor Robert Kiyosaki, author of the best-selling book “Rich Dad, Poor Dad,” told Fox Business Network Monday night.
The collapse of an institution as large as Credit Suisse, the world’s eighth-largest investment bank and a provider of the full range of private banking services, would be an earthquake.
In its annual report, the bank said its internal and disclosure controls over financial reporting as of December 31, 2022 and 2021 were not effective. The report had been due last week, but was delayed following last-minute talks with the Securities and Exchange Commission regarding its cash-flow disclosures.
