The failure of Silicon Valley Bank and Silvergate Bank has jolted the US financial industry into the midst of economic turmoil. According to Robert Kiyosaki, author of “Rich Dad, Poor Dad,” the situation is projected to deteriorate, with a third lender possibly suffering the same fate. On March 10, Kiyosaki tweeted that this circumstance would boost precious metals.

Third bank collapse warning

Kiyosaki feels his warning of a probable third bank failure corresponds to his 2008 prediction of the fall of Lehman Brothers. The bankruptcy of Lehman Brothers was a watershed point in the 2008 financial crisis.

Kiyosaki had forecast a worldwide economic collapse and projected that bank runs would escalate throughout the crisis. His warning about a possible third bank failure comes with continued concern about the future of Credit Suisse, another investment bank with a crypto concentration.

Credit Suisse’s future could be more apparent as the bank postpones its annual report after a Securities and Exchange Commission (SEC) meeting over its cash flow statements for 2019 and 2020. On March 10, 2023, the stock reached an all-time low.

Red flags for Credit Suisse

Moreover, real estate investor Graham Stephan said in October 2022 that Credit Suisse might be in a catastrophic period, with its credit default swaps (CDS) hitting their highest level since 2008. Economist and crypto-skeptic Peter Schiff warns that the US banking system is on the cusp of a more catastrophic collapse than the 2008 financial crisis. That massive withdrawal might lead to bank closures.

However, the failure of Silvergate Bank, which solely services crypto firms, has raised eyebrows in the financial community. The bank cited recent industry and regulatory changes as their decision. The collapse prompted a crypto market crisis, resulting in massive capital outflows and declining Bitcoin (BTC) values.

Regulators also shut down and took over Silicon Valley Bank’s exposure to cryptocurrency and technology start-ups. The shutdown has impacted the cryptocurrency market, with Circle confirming that part of its reserves was stored at SBV, leading the USDC stablecoin to depreciate from the dollar to $0.91.