Credit Suisse is not about to cause a Lehman moment, economist Sri-Kumar says

Worries are mounting implicit Credit Suisse's fiscal health — but that doesn't mean markets are headed toward a "Lehman moment," said the president of Sri-Kumar Global Strategies.

"I deliberation the Federal Reserve is going to person to look the consequences of a recognition event" if it were to occur, Komal Sri-Kumar told CNBC's "Squawk Box Asia" connected Monday. "Something is going to break."

"This whitethorn oregon whitethorn not beryllium a Lehman moment," helium said, referring to the illness of Lehman Brothers successful 2008, which triggered a drawstring of large Wall Street bailouts and a consequent fiscal crisis.

Over the weekend, respective media outlets reported that Credit Suisse sought to assuage investors' concerns implicit its fiscal wellness — the Swiss slope reportedly contacted its biggest clients aft its recognition default swaps roseate sharply.

CDSs are essentially security bets against defaults and a recognition lawsuit refers to a antagonistic and abrupt alteration successful the borrower's quality to repay its debt.

A long-time professional of the Fed's attack to the emergence of prices, Sri-Kumar said the latest events surrounding Credit Suisse shows the "real information of having miscalculated ostentation for specified a agelong time."

"They are trying to marque up for it by doing everything successful a hurry," helium said, referring to the Fed's continued hawkish argumentation and pledge to proceed hiking involvement rates to tamp down connected inflation.

In the Fed's latest monetary argumentation gathering successful September, the cardinal slope raised its benchmark complaint by three-quarters of a percent constituent and indicated it volition support raising rates good supra the existent level.

Sri-Kumar said specified attempts astatine controlling ostentation is unsafe for markets worldwide.

"It carries an tremendous magnitude of hazard to the planetary strategy successful presumption of what the assorted cardinal banks are doing," helium said.

The latest reports of Credit Suisse's actions to calm acrophobic investors could constituent to an eventual displacement successful the Fed's direction, said John Vail, main planetary strategist astatine Nikko Asset Management.

"The metallic lining astatine extremity of this period, is the information that cardinal banks volition astir apt commencement to relent immoderate clip arsenic some ostentation is down and fiscal conditions worsen dramatically," helium said connected CNBC's "Squawk Box Asia" Monday.

"I don't deliberation it's the extremity of the world, but it could get scary for the adjacent 4th oregon so," helium said.