Warnings have emerged of a wider banking collapse on the backs of the failure of the Silicon Valley Bank, with a financial expert who predicted the 2008 financial crisis warning that Credit Suisse may be the next to fall after the Swiss bank’s shares fell to an all-time low on Tuesday.
Switzerland’s second-largest bank, Credit Suisse, saw its shares fall by five per cent in early trading on Tuesday to a record low for the company after confirming some $8 billion (£6.6 billion) in losses in 2022 and admitting that there was “material weakness” in its accounting system for financial reports.
The bank’s books were thrown into question last week after the US Securities and Exchange Commission (SEC) contacted Credit Suisse to warn that it was in jeopardy of providing a misstatement over the accounting of cashflows in 2019 and 2020, forcing the bank to delay its annual report until this week, The Times of London reported.
On Tuesday, Credit Suisse claimed that the “weakness” in its books resulted from a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements”.
