Big Four US banks are battered in pre-market and Dow drops 600 points – wiping out yesterday’s gains – as Credit Suisse shares plunge up to 25% to record low after SVB collapse
Wall Street’s main stock index futures dropped on Wednesday, as fresh worries related to Credit Suisse battered investor sentiment and sent shares of major US banks lower. In Europe, shares of Credit Suisse plunged up to 28 percent, hitting a a new record low for the second day in a row, after the Swiss bank’s largest investor said it could not provide more financial assistance to the lender. The Big Four trillion-dollar US banks suffered in premarket after yesterday’s rally, dropping between 2.7 percent and 4.8 percent.
Credit Suisse shares fell 5 percent to an all-time low in early trading on Tuesday after the bank confirmed material weaknesses and an $8billion loss in 2022, just hours after a financial expert warned it would be the next financial institution to fall following SVB. Last night, Robert Kiyosaki – an investor and author of Rich Dad, Poor Dad who accurately predicted the 2008 fall of Lehman Brothers – warned during an appearance on Fox Business, that ‘the problem’ is the bond market, and that Credit Suisse – the eighth largest investment bank in the world- was most vulnerable. ‘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. The bond market is much bigger than the stock market. The fed is up and they’re the firemen and the arson,’ he said. On Tuesday morning, Credit Suisse published its annual report which revealed an $8billion loss for 2022. The bank had been due to publish the report last Thursday, but was sent back to review its books by the SEC. Today, Credit Suisse said the ‘weaknesses’ was down to a ‘failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements’.
Credit Suisse shares fall to all-time low as the world’s seventh largest investment bank announces it has found ‘material weakness’ – just hours after Wall St expert predicted that it would be the next to fail after SVB
New fears of banking contagion are triggered by crisis that killed Silicon Valley Bank, as billionaire economist Bill Ackman demands Biden ‘guarantee all deposits now’ – or else America’s economy could melt down