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.

The latest news about the collapse of the banking industry and the fiat currency scheme backing it can be found at Collapse.news.

Sources include:

• Breitbart.com
• NaturalNews.com
• NYTimes.com
• NATURAL NEWS

Right now, Credit Suisse is one of the most important banks in the entire world.  If you are not familiar with Credit Suisse, the following is some good background information that comes from Wikipedia…

Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global “Bulge Bracket” banks providing services in investment banking, private banking, asset management, and shared services. It is known for strict bank–client confidentiality and banking secrecy. The Financial Stability Board considers it to be a global systemically important bank. Credit Suisse is also primary dealer and Forex counterparty of the FED .

Credit Suisse is truly one of the central hubs of the entire international banking system.

If it were to fail, the ripple effects would be felt very deeply in literally every nation on the planet.

Unfortunately, it is being reported that Credit Suisse could be “on the verge of collapse” and we are being warned that if it does collapse it could cause “a shock similar to that caused by the bankruptcy of the U.S. bank Lehman Brothers in September 2008”…

Speculation surrounding the future of the Swiss banking giant has been going on for several months in the markets, in business and political circles, as well as on social networks.

The No. 2 Swiss bank and one of the largest banks in the world is in deep trouble and is currently fighting for its survival. A negative outcome is likely to cause a shock similar to that caused by the bankruptcy of the U.S. bank Lehman Brothers in September 2008. This event triggered one of the most serious financial and economic crises since the Great Depression.

When Lehman Brothers collapsed in 2008, it had 639 billion dollars in assets.

In late 2022, Credit Suisse currently has 1.5 trillion dollars of assets under management.

pic.twitter.com/mpAoIj7zdI

— SG (@GhoshSubhag) October 2, 2022

The collapse of Credit Suisse would create a wave of panic that would be unlike anything that we have seen since the last financial crisis.

But new CEO Ulrich Koerner insists that everything is just fine…

There has been plenty of movement around Credit Suisse over the weekend. On Friday, CEO Ulrich Koerner sent around a memo saying that the bank had a “strong capital base and liquidity position”, whilst senior executives spent their weekend doing their best to reassure large clients, counterparties and investors, according to the Financial Times.

The memo from the CEO also noted that the bank was at a “critical moment” as it prepares for a restructuring, the details of which are the be revealed on October 27. Expectations are that some 5000 jobs could be cut, with assets sold off. Some analysts are saying it won’t be enough, however. According to a Bloomberg report, Credit Suisse is estimated to need a further $4 billion Swiss francs even after asset sales, to fund the restructuring, with a capital raise touted as the most likely option.

Are the markets buying what Koerner is selling?

Nope.

Credit Suisse credit default swaps just keep going the wrong direction, and that means that investors are starting to get really, really nervous…

Credit Suisse’s Credit Default Swaps, or CDS, a derivative instrument that allows an investor to swap their credit risk with another investor, surged on Friday, reflecting the market perception of increasing risk. It is now approaching the highs seen during the 2008 financial crisis, which saw U.S. investment bank Lehman Brothers go bankrupt.

Houston we have a problem. Market cap of $CS is now a rounding error. 35x leverage. This and Deutsche Bank…a canary in coal mine.

CDS on Credit Suisse now at GFC highs. #btc pic.twitter.com/cVTOavkBv2

— FOSS – #forthekids (@FossGregfoss) September 30, 2022

At this point, just about everyone can smell blood.

And it certainly isn’t going to take much to set off widespread hysteria.

Formal Announcement: pic.twitter.com/Pmygv369gq

— Rammity Capital (@RammityCap) October 1, 2022

This is such an ominous time for Europe.  The EU is heading into the worst energy crisis that it has ever experienced, the bond market is starting to go bonkers, and now giant financial institutions such as Credit Suisse are being greatly shaken.

Martin Armstrong was recently interviewed by Greg Hunter, and he boldly declared that a “crisis in banking will start in Europe”…

So, could Europe suck the rest of the world down the tubes? Armstrong says, “Oh, absolutely. Europe is the problem. . . . The crisis in banking will start in Europe. . . . The debt is collapsing. They have no way to sustain themselves. The debt market over there is undermining the stability of all the banks. You have to understand that reserves are tied to government debt, and this is the perfect storm. Yes, the (U.S.) stock market will go down short term. We are not facing a 1929 event or a 90% fall here. . . . Europeans, probably by January of 2023, as this crisis in Ukraine escalates, anybody with half a brain is going to take whatever money they have and get it over here.”

I am not as optimistic about U.S. financial markets as Armstrong seems to be.

Yes, Europe is currently in worse shape, but things are starting to unravel quite rapidly here too.

In fact, we just witnessed the worst month for U.S. stocks since the very early days of the pandemic…

September was a horrible month for stocks. The Dow fell nearly 9%, its worst monthly drop since March 2020, when pandemic lockdowns started in the United States. The index ended Friday deeply in the red, too.

Overall, this is the very first time that the Dow Jones Industrial Average has been down for three quarters in a row since 2015.

And it is the very first time that the S&P 500 and the Nasdaq have been down for three quarters in a row since 2009.

A lot of people out there still seem to think that things will “return to normal” very soon, and unfortunately all of those people are very wrong.

The truth is that we are right on the precipice of the sort of historic meltdown that I have been relentlessly warning was coming.

Our leaders kicked the can down the road for a long time, but now they are running out of road.

A day of reckoning has arrived for Europe, and soon a day of reckoning will arrive for us as well.

So buckle your seatbelts, because we are in for a very bumpy ride.

***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***

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Article cross-posted from The Economic Collapse Blog.