http://businessdayonline.com/index.php?option=com_content&view=article&id=4520:how-bad-intercontinental-bank-was-before-cbn-hammer&catid=1:latest-news&Itemid=18

Facts emerged over the weekend on how bad the situation was in some of the banks affected by the Central Bank of Nigeria (CBN) hammer on their management.
Among the facts that emerged was the severe situation of the case of Intercontinental Bank plc. BusinessDay learnt over the weekend that, Erastus Akingbola, the former managing director, gave out N250 billion to his associate companies which was used to buy shares in bank.
Indeed, 78 percent of Intercontinental Bank’s shareholders’ funds were eroded, according to the CBN findings. It was learnt that Intercontinental had bad books in oil and gas as well as real estate. This had prompted the former CBN governor, Chukwuma Soludo to bail out the bank few months ago.

Soludo had saved the bank because he realised there would be a systemic problem and that there was problem with the country’s income as at that time and therefore advised the president, Umaru Yar’Adua, accordingly.
It was also gathered that Intercontinental Bank had gone into discussions with Access Bank and Fidelity Bank towards a merger such that Akingbola would have been chairman and the incumbent management structures would remain.
“He was trying to save himself but unfortunately the CBN refused to endorse the merger proposal because his own case was too glaring and too bad. When he realised he was being pushed to the wall, he decided to lobby and when lobby failed, he decided to rubbish the three petroleum importers owed N35 billion”, the source said.
However, sources disclosed that some of the sacked executives have decided to seek redress in the court because the implication is that they cannot hold political appointments nor any position in the financial industry and that was what led Akingbola to attempt to resign before the fatal meeting with the CBN governor.
It was gathered that the ensuing litigation by the affected directors and their shareholders would further destabilise the financial market and, particularly, the banks affected ensuring that they are unable to raise any capital both locally and internationally.
Besides, they are optimistic that CBN’s action had been upturned in the past by the Nigerian judicial system which had led to the restoration of the licenses of banks like Societe Generale Bank and Savannah Bank, although, at a great loss to the economy and the owners of the banks.
According to a source in Intercontinental, “even after the erosion of the bank’s shareholders’ funds, the bank still had N25 billion which is the standard regulatory requirement for a universal bank in Nigeria and none of the banks axed had less that N25 billion share capital, factoring loan loss provisions and losses that the CBN claimed to have uncovered”.
The source added that there is absolutely no basis for an invitation for additional capital with the N400 billion tier-2 capital that the CBN has disbursed.

. . . and some people will come here and tell us Akingbola's axing was witchhunting

there were threads on intercontinental earlier in the year. that was he they were shouting demarketing etal.

and he is a pastor.

I think EFCC should be brought in so that we can get to the bottom of this case.its amazin' that out of the five banks,Intercontinental is making all the headlines

otokx:

and he is a pastor.

-Everything about Nigeria is so corrupt - I have been putting myself back cause i cannot afford to lose any money . to the extent i am looking at investing my money in the Ghana economy - What a loss for Nigeria

otokx:

and he is a pastor.

A pastor with RCCG,,,we also used to have one Bunmi Oni who ran down Cadbruy Nig. Plc,,,also a pastor at RCCG,,,,These re people that paid up the cost of Jet,,,soon their wouldn't be any moeny to sustain the maintenace of the Jet,,,

Pastors runing down companies! WARNING!: If you ever own a personal firm, do not allow a "pastor" any sensitive position