He also warned that the collapse of the commercial real estate and bond markets is "around the corner."
This statement came in light of the First National Bank of Lindsay in Oklahoma, which declared bankruptcy at the end of October after regulators intervened upon discovering signs of fraud.
Although the immediate crisis was swiftly averted thanks to another small lender — First Bank & Trust Co. — the bank's bankruptcy shocked depositors, as it became known that the U.S. Treasury would not step in to prevent losses on deposits exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250,000.
However, there is a possibility that the anticipated losses may be mitigated, depending on the funds recovered from the sale of the bankrupt bank's assets.
At first glance, Kiyosaki's statement about a "banking crash" seems exaggerated, considering that the failed bank had only one branch, $10 million in equity, less than $100 million in deposits, and just over $105 million in assets.
Banking crash has begun. Oklahoma bank shuts its doors. Watch out bonds and commercial real estate markets next to go.
Take care
— Robert Kiyosaki (@theRealKiyosaki) November 2, 2024
Nevertheless, the bankruptcy occurred after months of fear and rumors that American banking corporations might not be as secure as the public would like to believe.