4 of the five banks were on the border of insolvency (would become insolvent in due time), while the 5th was technically insolvent (with a CAR of 1.01%).

Please read the CBN address and stop spreading misinformation http://cenbank.org/OUT/SPEECHES/2009/GOVADD-14-8-09.PDF

Adigbans:

well,
all i can say is NIGERIANS WAKE UP, TAKE A LOOK AT THE BIG PICTURE!!
okay chase debtors, get the money nice, but couldnt he have give these directors a warning and time to get this so called debts?is the only reason for this take over? yes, i said TAKE OVER, because that is what it is!!

we the wise nigerians know "their" plans, after a while,quote me on this, the "puppet acting M.D.s will get up and tell us that they "couldnt salvage" the banks and make d money ( billions injected into the banks, as if they were needed; these banks were doing well without the monry) back, then the so called 'INVESTORS" and sanusi will then tell us the "INVESTORS" want ownership instead and then we will know the real identity of these unknown "INVESTORS".

nigerians, WAKE UP AND SMELL THE COFFEE!!

Please check the facts before posting irrelevancies. Do you know the level of exposure of said banks? The only reason they were looking healthy was because they were doctoring their books.
So if you caught someone mismanaging funds, you would rather we let them go back to mismanging said funds, in the hope that they will sin no more?

biina:

Please check the facts before posting irrelevancies. Do you know the level of exposure of said banks? The only reason they were looking healthy was because they were doctoring their books.
So if you caught someone mismanaging funds, you would rather we let them go back to mismanging said funds, in the hope that they will sin no more?

I dont have issues with the motives. But the manner of approach. You dont fix a house by burning it down. Causing widespread panic and denting banking confidence. As a policy maker one should know how to handle the markets. You are not running a government or a ministry here. This has to do with the wider economy where perception leads to confidence and confidence leads to economic activities and growth.
I would not blame your likes if you do not understand where im getting at.
And stop posting what Sanusi said. We need to hear from the board of these banks as well as their auditors. Many of which are of international repute.

adigun101:

I dont have issues with the motives. But the manner of approach. You dont fix a house by burning it down. Causing widespread panic and denting banking confidence. As a policy maker one should know how to handle the markets. You are not running a government or a ministry here. This has to do with the wider economy where perception leads to confidence and confidence leads to economic activities and growth.
I would not blame your likes if you do not understand where im getting at.
And stop posting what Sanusi said. We need to hear from the board of these banks as well as their auditors. Many of which are of international repute.

What would have been your proposed manner of approach that would have yielded better results? To let them continue in office?

I posted a link to the CBN address to help inform others, and to counter the article posted earlier in which the NBA president erroneously claimed that none of the banks was insolvent.
I have not seen contradicting evidence from the banks executives and/or their auditors. If you have such, please post.

The CBN has posted their findings (which is not limited to the debtors list) that necessitated their actions. Anyone (sacked executives, shareholders, auditors etc) arguing otherwise should present evidence in support of their counter argument, and not just quoted denials in the newspapers.

Well, i dont know why some of the posters like biina, otokx,fyneguy etc have refused to be objective in their reasoning.
T a very large extent, a good number of people are not against Sanusi's so callled 'clean up' of the banks. The problems here are
1. There are better approaches to doing this. He could have advised the CEOs to resign and would have avoided all the problems he has caused the economy and the only thiving industry in Nigeria. He keeps saying this is only a clean up which is meant to make the banks stronger and therefore the depositors and investors should not panic. All that would have been taken care of if he had not taken the approach he took. Why announce the sack/removal of MDs in the media? Doing that in my opinion is not in the interest of the investors and customers cos it would rather cause panick.
2. Who says that the 5 banks that have been cleared do not do insider trading, manipulation of shares, money laundering and all the other offences he claimed the 5 banks whose CEOs were sacked are into.
3. What was the basis of the audit on? Cos i know that if it is based on which banks manipulate shares, do insider trading and all, then i believe that the 5 banks that are cleared would not be cleared. So lets know what exactly these pple were sacked for. If it is based on the amount of non-performing loans then fine, but it really annoys me when i hear people talk about share manipulation cos all the cleared banks do the same.

people have no confidence in the honesty of the cbn as well as whatever records or statistics they have. so I don't see the point of refering people to what cbn said or did not say. of course they will provide stats to support their dodgy claims and that of their governor.

Its like a christain who has disputes with a Muslim over whose religion is superior and then you resort to the bible to make your argument to the muslim who does not believe in your bible in the first place.

mightlove:

Well, i dont know why some of the posters like biina, otokx,fyneguy etc have refused to be objective in their reasoning.
T a very large extent, a good number of people are not against Sanusi's so callled 'clean up' of the banks. The problems here are
1. There are better approaches to doing this. He could have advised the CEOs to resign and would have avoided all the problems he has caused the economy and the only thiving industry in Nigeria. He keeps saying this is only a clean up which is meant to make the banks stronger and therefore the depositors and investors should not panic. All that would have been taken care of if he had not taken the approach he took. Why announce the sack/removal of MDs in the media? Doing that in my opinion is not in the interest of the investors and customers cos it would rather cause panick.
2. Who says that the 5 banks that have been cleared do not do insider trading, manipulation of shares, money laundering and all the other offences he claimed the 5 banks whose CEOs were sacked are into.
3. What was the basis of the audit on? Cos i know that if it is based on which banks manipulate shares, do insider trading and all, then i believe that the 5 banks that are cleared would not be cleared. So lets know what exactly these people were sacked for. If it is based on the amount of non-performing loans then fine, but it really annoys me when i hear people talk about share manipulation cos all the cleared banks do the same.

people keep refusing to come to terms with the fact that soludo had already given the mds a chance. i guess nigerians prefer to live in a world of false impressions where the bankswould have continued promoting the illusion that they were 'thriving' until thy finally collapsed. i do not know how many times i will have to remind people that it was clear that intercontinental was in trouble. they tried to raise the minimum deposit balance in an effort to shore up liquidity. they had an 'atm outage' that lasted an entire weekend . i should know - my wife uses intercontinental.

keep deceiving your selves. sanusi is revealing the fact that the so called  thriving industry is nothing but a house of cards. i guess you lot prefer to subsist on illusions

@oyb
If you read my post very well, i never said anything about Sanusi giving the CEOs another chance. Does telling them to resign without so much noise equate to giving them another chance?
I only said that to avoid this impression that he has given customers and investors, he would have told them to resign without any noise since he planned not to let the banks fail but make them stronger. I cant see where i mention anything about giving them another chance.
Please, read my post over again, i guess you did not read it well.

Union Bank, Intercontinental, 3 others may be acquired

THE five banks; Union Bank, Intercontinental Bank, Afribank, FinBank and Oceanic Bank whose CEOS and Executives were relieved of their employment, may cease to exist as the Central Bank of Nigeria (CBN) wants them taken over by other banks in a recapitalisation plan to be unfolded in London on Friday. A CBN source told correspondents that the apex bank governor, Mr. Lamido Sanusi, preferred the ailing banks being taken over by other banks rather than setting up an asset management company to take over the non-performing loans. To ensure that other banks take over the ailing banks, the apex bank source said the banks would be valued properly by a consortium of valuers to ensure that they were not undervalued. Friday’s meeting with international banks, lenders and rating agencies, according to the apex bank would also be used to discuss the recent N420 billion bailout for the five banks. Sanusi will be accompanied by the new management teams of Afribank, FinBank, Intercontinental Bank, Oceanic Bank and Union Bank. The CBN had, on August 14, 2009, injected N420 billion into the five banks and sacked their managing directors and the executive directors over what it described as weak and unethical management, which left the banks very weakly capitalised to the point of collapse. In injecting the bailout, the apex bank said the capital injection was only a temporary measure and that the institutions would be run as ongoing concerns until new investors could be found to recapitalise and take them over. However, this intention of the CBN may pitch the CBN against the shareholders of these banks who have vowed to resist any takeover of the banks through the backdoor - TRIBUNE

biina:

What would have been your proposed manner of approach that would have yielded better results? To let them continue in office?

You dont get it. The banks are not jus about their MDs.
THE BANKS should've been given time to disclose their real situations and remedy the  situations with the backing of the CBN on errant debtors.
If the bank where still found wanting by way of being isolvent or non-performing, the CBN would have been advised the boards of the Banks to remove the MDs. ,
There are many other ways in which this can be done. Just carry out a detailed analysis of banking and coporate sector interventions in history none would match the reckless haste at which Sanusi has gone about it.

I posted a link to the CBN address to help inform others, and to counter the article posted earlier in which the NBA president erroneously claimed that none of the banks was insolvent.

Who do you think is right. The CBN, NBA president, bank auditors or you. You see this is what happens when there is no proper hearing from all parties involved. This is why fair hearing is very important else there is no credibility to his press releases. Even you know that there questions when the CBN tells you it audited 10 BANKS IN 2 MONTHS ! And then starts admitting to some mistakes afterwards.

I have not seen contradicting evidence from the banks executives and/or their auditors. If you have such, please post.
The CBN has posted their findings (which is not limited to the debtors list) that necessitated their actions. Anyone (sacked executives, shareholders, auditors etc) arguing otherwise should present evidence in support of their counter argument, and not just quoted denials in the newspapers.

I haven't, but i think it should be sought after by guess who. You got it right the CBN! And if they were complicit in the cover up, they should be liable as well. Because the courts will eventually ask for these documents. It will be a huge embarassment if these auditors start contradicting the CBN and IN COURT.

mightlove:

Well, i dont know why some of the posters like biina, otokx,fyneguy etc have refused to be objective in their reasoning.
T a very large extent, a good number of people are not against Sanusi's so callled 'clean up' of the banks. The problems here are
1. There are better approaches to doing this. He could have advised the CEOs to resign and would have avoided all the problems he has caused the economy and the only thiving industry in Nigeria. He keeps saying this is only a clean up which is meant to make the banks stronger and therefore the depositors and investors should not panic. All that would have been taken care of if he had not taken the approach he took. Why announce the sack/removal of MDs in the media? Doing that in my opinion is not in the interest of the investors and customers cos it would rather cause panick.
2. Who says that the 5 banks that have been cleared do not do insider trading, manipulation of shares, money laundering and all the other offences he claimed the 5 banks whose CEOs were sacked are into.
3. What was the basis of the audit on? Cos i know that if it is based on which banks manipulate shares, do insider trading and all, then i believe that the 5 banks that are cleared would not be cleared. So lets know what exactly these pple were sacked for. If it is based on the amount of non-performing loans then fine, but it really annoys me when i hear people talk about share manipulation cos all the cleared banks do the same.

Objectivity-personalized,
-Can you tell us the better approach? Do you know the gravity of cooking financial statements? Soludo used the so-called 'civil' approach and the problem got messier. Telling who to resign? Wanton breach of banking principles and you are saying they should not be fired. The truth is you have to take some decisive measures if you want things corrected.
I work in a popular  company and something similar happened recently. There were massive fraud, inefficiency and breach of controls detected by an audit and special investigation exercise in one of our subsidiaries, and indeed the most popular subsidiary. The Group Executives fired the entire senior management team(COO,ED Heads of Dept etc) of the subsidiary, not because they were the ones that perpetrated the fraud, but because all the fraud and irregularities were perpetrated by their subordinates under their watch. And these are people, some of whom have spent about 15 years in the company, people you see in newspapers and you will ordinarily think they are the owners of the company. I am very sure that for the Group executives to sack these people, people they had been wining and dining  with for 15 years, it must be in the interest of the business. They would have also thought of the consequences of such action(firing a generation of people that are vastly experienced in the business and indeed the engineroom of their business) and possibly thought of just warning them.

The point here is that, at some point pampering or slapping-in-the-wrist could be dangerous and you just have to take some decisive actions that outsiders will think are too drastic.

, "NIGERIANS WAKE UP AND SMELL THE COFFEE!!!"

we have gone from making the banks stronger to selling them

the story keeps changing

the grand plot will fail

mikeansy:

we have gone from making the banks stronger to selling them

Selling banks and making them stronger are not mutually exclusive.
If the new investors are ready to inject life into them and make them stronger. So be it.

PRO-SANUSI PEOPLE,
Please answer my questions

1. why did Sanusi not complete the whole audit exercise before sacking the bosses?

2. Why did he release a half-baked debtor list, prone to dispute and debate?

3. Does he have the power to just conclude and release 400 billion to banks without due process?

4. Is it a crime to collect loan from bank? If loans are Non-Performing, is it not normal to write the debtors and demand a payup or regularisation before publishing their names, violating the banking code of CONFIDENTIALITY?

5. Is it a criminal offence to be found wanting in one's job or to take a bad business decision?

6. did first bank where Sanusi was ED and later MD not write off over 20Billion as bad debt just a couple of months ago? Was anyone sacked or arrested over that?

7. Is it a matured and wise for a CBN governor to state to the media "I want to see some of the CEOs go to jail" even as they have not been found guilty of anything?

8. Does a CBN boss who knows what he is doing and really wants to instil confidence in the industry use words like "illiquid", "insolvent" in describing the banks?

9. If the problem is that of bad loan profile and there is no ulterior motive, IS IT OK TO START CLAMOURING FOR THE TAKEOVER OF THE BANKS BY NEW OWNERS without the conclusion of the loan recovery efforts currently on-going? If the loans are recovered will the banks not repay the 400 Billion injected and continue with life under a new management? Must they be sold?

10. Did Sanusi's CBN not approve Oceanic banks financial result which was released last month? If there were problems, why was it approved


JARUS AND YOUR PEOPLE, GIVE ME ANSWERS OOO, COS I DEY VEXXXXXX

PLEASE GIVE ME ANSWERS

the "GRAND PLOT" is on,

as we speak right now, JOHN ABOH says he is on a "BUSINESS TRIP" out of the country. who are we fooling?,

nigerians, "WAKE UP AND SMELL THE COFFEE",
southerners, "WAKE UP AND SMELL THE COFFEE",
just people, "WAKE UP AND SMELL THE COFFEE",

these people take action & danm all consequences and people are here arguing about bad debts?
they can no longer come in "UNIFORMS", armed with guns; they cannot control oil anylonger( the "boys" have made it hard for them), now they want to control the next vital and growing industry in the country?

"WAKE UP AND SMELL THE COFFEE"!!!

I am of the view that Sunusi is doing a right thing. Thus I approve of his action.

they are on step 3 of 4

step1: 5 top banks are destroyed so as to pave the way (that was rightly predicted by vangaurd)

step2: destroy confidence in the banking system (also predicted by vanguard), this explains why they are telling us about immaginary impending collapse that is unexistent.

step3: sell the banks to Sanusi's cronies which they are trying to do by friday in london

I weep for Nigeria

mightlove:

@oyb
If you read my post very well, i never said anything about Sanusi giving the CEOs another chance. Does telling them to resign without so much noise equate to giving them another chance?
I only said that to avoid this impression that he has given customers and investors, he would have told them to resign without any noise since he planned not to let the banks fail but make them stronger. I cant see where i mention anything about giving them another chance.
Please, read my post over again, i guess you did not read it well.

yeah right, if any of those CEOs had any sense of shame they would have resigned after soludo bailed them out the first time.haven't you read about how erastus was running round lobbying people to stop sanusi?

have you EVER seen a Nigerian resign honourably / beans?

PRO-SANUSI PEOPLE,
Please answer my questions

1. why did Sanusi not complete the whole audit exercise before sacking the bosses?

2. Why did he release a half-baked debtor list, prone to dispute and debate?

3. Does he have the power to just conclude and release 400 billion to banks without due process?

4. Is it a crime to collect loan from bank? If loans are Non-Performing, is it not normal to write the debtors and demand a payup or regularisation before publishing their names, violating the banking code of CONFIDENTIALITY?

5. Is it a criminal offence to be found wanting in one's job or to take a bad business decision?

6. did first bank where Sanusi was ED and later MD not write off over 20Billion as bad debt just a couple of months ago? Was anyone sacked or arrested over that?

7. Is it a matured and wise for a CBN governor to state to the media "I want to see some of the CEOs go to jail" even as they have not been found guilty of anything?

8. Does a CBN boss who knows what he is doing and really wants to instil confidence in the industry use words like "illiquid", "insolvent" in describing the banks?

9. If the problem is that of bad loan profile and there is no ulterior motive, IS IT OK TO START CLAMOURING FOR THE TAKEOVER OF THE BANKS BY NEW OWNERS without the conclusion of the loan recovery efforts currently on-going? If the loans are recovered will the banks not repay the 400 Billion injected and continue with life under a new management? Must they be sold?

10. Did Sanusi's CBN not approve Oceanic banks financial result which was released last month? If there were problems, why was it approved


JARUS AND YOUR PEOPLE, GIVE ME ANSWERS OOO, COS I DEY VEXXXXXX

PLEASE GIVE ME ANSWERS

mjbaba:

     PRO-SANUSI PEOPLE,
Please answer my questions

1. why did Sanusi not complete the whole audit exercise before sacking the bosses?

why should he wait when he already had evidence against some of them. what would be achieved by waiting till the end of the audit except giving the major culprits time to hamper the process. I suggest that you read his address to understand why the action was necessitated against said banks.

2. Why did he release a half-baked debtor list, prone to dispute and debate?

what is half baked in the list. A  few typos in names and we want to discredit the list. There has been no evidence provided to counter said list, and none of the admitted typos by the CBN has changed anything substantial on the list. Rather some are speculating on possible errors and are (sadly) presenting it as an excuse to engender an illegality. We should not loose sight of the main picture and instead get embroiled in petty details.

3. Does he have the power to just conclude and release 400 billion to banks without due process?

what would be the due process? he has not bought shares in the banks but rather extended credit facilities against their tier 2 capital. essentially directly guaranteeing the deposits at the bank. That is fully within the capacity of the CBN.

4. Is it a crime to collect loan from bank? If loans are Non-Performing, is it not normal to write the debtors and demand a payup or regularisation before publishing their names, violating the banking code of CONFIDENTIALITY?

it is not a crime to owe money in itself, but becomes so if the bank's books are doctored to cover up said loans, and you are suspected of complicity in the act. If the loans had been written off, the books would not have been doctored. Instead the banks doctored the books to give the appearance of profitability, knowing fully well that writing off the debts will likely put them in the red. The values ascribed to some of the bank, if written off, would have wiped out the shareholders capital hereby making them insolvent.

5. Is it a criminal offence to be found wanting in one's job or to take a bad business decision?

It all depends on the motive behind said bad business decisions. Incompetence is usually not a crime, but embezzlement and abuse of office are. Whichever, that is an issue for the EFCC and judiciary to determine.

6. did first bank where Sanusi was ED and later MD not write off over 20Billion as bad debt just a couple of months ago? Was anyone sacked or arrested over that?

Writing off bad debts is the right thing to do, and no one can be prosecuted over it, except the shareholders decide to replace said executive.

7. Is it a matured and wise for a CBN governor to state to the media "I want to see some of the CEOs go to jail" even as they have not been found guilty of anything?

There is nothing wrong with the CBN wishing that people who have abused the trust of depositors go to jail. It is no differentt from most investors wanting Madoff behind bars. If it will come to pass is a different issue.

8. Does a CBN boss who knows what he is doing and really wants to instil confidence in the industry use words like "illiquid", "insolvent" in describing the banks?

Yes, if that is a true state. It will be disingenous for him to describe them otherwise, when they are actually unhealthy.

9. If the problem is that of bad loan profile and there is no ulterior motive, IS IT OK TO START CLAMOURING FOR THE TAKEOVER OF THE BANKS BY NEW OWNERS without the conclusion of the loan recovery efforts currently on-going? If the loans are recovered will the banks not repay the 400 Billion injected and continue with life under a new management? Must they be sold?

That depends on the current ownership structure of the bank. If said executives who are guilty of malpractices own controlling stakes in the bank, then the only way for a new management to be effective, is to effect a change in ownership of the bank, else it will just be jogging on the spot. Lets assume Ovia is found guilty of malpractices, how do you effect change when he still owns the bank?

10. Did Sanusi's CBN not approve Oceanic banks financial result which was released last month? If there were problems, why was it approved

To not approve it would be unfair on the bank, as the audit process was still ongoing. The CBN had to maintain status quo until they had sufficient proof otherwise.

I will be as brief as possible because I have elaborately answered these questions in my previous posts since the issue started. You can check my past posts for my past comments. But let me run down summary answers again:

1. why did Sanusi not complete the whole audit exercise before sacking the bosses?
-High level politicking may get him stop the idea. Remember how Erastus almost succeeded in lobbying for the drop of the idea when he got wind of the impending removal. The run to Obj. Even till now, Sanusi said some big men are lobbying Yar'adua to order him to stop it
-Further delaying it may get the situation messier
-Sanusi had a fair idea of the most hit banks, being a former CEO.

2. Why did he release a half-baked debtor list, prone to dispute and debate?
I won't say it's half-baked, but it's inaccurate. I also disgree with his not taking his time to srutinize the list, I don't believe that makes the whole exercise insincere and rubbish

3. Does he have the power to just conclude and release 400 billion to banks without due process?
I dont know. But I have read legal people debate it. Some argue it's wrong, some say it's in order and doesn't need any NA approval.I have not seen any of the two camps quote a specific area of the constitution to back their point.  I therefore don't have enough info to form opinion on this yet.

4.a Is it a crime to collect loan from bank? If loans are Non-Performing, is it not normal to write the debtors and demand a payup or regularisation before publishing their names, b, violating the banking code of CONFIDENTIALITY?
a, It is not a crime but the question here is not whether they collected loan but the manner it was collected(no collateral etc). There is obviously something wrong here.
b, Yes, the law says customer-banker relationship should be confidential, but the same law gives 3 major exceptions: 1, Written permission of customer 2, Public Interest 3, Court Order. CBN's action is covered under exception 2. Removing the confidentiality veil is for public interest-to salvage an ailing financial system on the brink of collapse.

5. Is it a criminal offence to be found wanting in one's job or to take a bad business decision?
It depends on how you are found wanting. If it is for incompetence, it may not be a crime but if it for cooking books and falsification, it is a crime. The fired CEOs were accused of cooking books, among other things. It is therefore a crime.

6. did first bank where Sanusi was ED and later MD not write off over 20Billion as bad debt just a couple of months ago? Was anyone sacked or arrested over that?
Where did you read this. But let me assume it's correct.
They wrote off the debt as bad two months ago. So what's bad in that? But the fired bank executives refused to do so.

7. Is it a matured and wise for a CBN governor to state to the media "I want to see some of the CEOs go to jail" even as they have not been found guilty of anything?
I have read virtually all his interviews and I know the statement you are trying to quote here. He did not say he wanted to see anybody go to jail, what he said was anybody that was found guilty would be prosecuted.

8. Does a CBN boss who knows what he is doing and really wants to instil confidence in the industry use words like "illiquid", "insolvent" in describing the banks?
If anything, Sanusi has even been lenient in his choice of words. The situation is worse. When the system is illiquid and insolvent, can you give better words to use. This is finance. No glossing the grammar. Finance terms have to be used.

9. If the problem is that of bad loan profile and there is no ulterior motive, IS IT OK TO START CLAMOURING FOR THE TAKEOVER OF THE BANKS BY NEW OWNERS without the conclusion of the loan recovery efforts currently on-going? If the loans are recovered will the banks not repay the 400 Billion injected and continue with life under a new management? Must they be sold?
Take-over is one of the options, as is former owners bringing new funds and having their banks back. Whichever option will strengthen the system back will be adopted. There is nothing wrong in reviewing the options.

10. Did Sanusi's CBN not approve Oceanic banks financial result which was released last month? If there were problems, why was it approved
The financial statement was 18 month ended December 2008. Moreso, the audit that revealed the mess was a special audit.

@ OYB MEND and his comments

[they are on step 3 of 4

step1: 5 top banks are destroyed so as to pave the way (that was rightly predicted by vangaurd)

step2: destroy confidence in the banking system (also predicted by vanguard), this explains why they are telling us about immaginary impending collapse that is unexistent.

step3: sell the banks to Sanusi's cronies which they are trying to do by friday in london

I weep for Nigeria]

BULLS EYE!!

@Jarus
Please, can you give us details on how iliquid and insolvent the five banks are. It seems you've got all the information on how iliquid and how insolvent the 5 banks are.

adigun101:

You dont get it. The banks are not jus about their MDs.
THE BANKS should've been given time to disclose their real situations and remedy the  situations with the backing of the CBN on errant debtors.
If the bank where still found wanting by way of being isolvent or non-performing, the CBN would have been advised the boards of the Banks to remove the MDs. ,
There are many other ways in which this can be done. Just carry out a detailed analysis of banking and coporate sector interventions in history none would match the reckless haste at which Sanusi has gone about it.

This is hilarious.
A bank found guilty of doctoring its books should be given time to disclose its real situation.
If the banks had any genuine intention of accurate reporting, would they have been cooking the books?
Was the audit not carried out to determine the real situation of the said banks?
or the CBN should ignore the findings of their audit and instead rely on the 'real situation' disclosed by the banks?

So while you admit that the Banks are beyond the MDs, yet you propose as a solution that the board simply remove the MD? All the while depositors funds are continuously being mismanaged.
Given the dire situation of said banks, Sanusi was lenient in not withdrawing their licenses and closing them down.

Who do you think is right. The CBN, NBA president, bank auditors or you. You see this is what happens when there is no proper hearing from all parties involved. This is why fair hearing is very important else there is no credibility to his press releases. Even you know that there questions when the CBN tells you it audited 10 BANKS IN 2 MONTHS ! And then starts admitting to some mistakes afterwards.

The CBN and the Bank in question, as they are in the best position to determine if a bank is insolvent. The NBA president has no idea of what he is talking about, and has to rely on second hand information like the rest of us. This is not a court case. The CBN is carrying out its supervisory role and thus there is no issue of fair hearing.

I haven't, but i think it should be sought after by guess who. You got it right the CBN! And if they were complicit in the cover up, they should be liable as well. Because the courts will eventually ask for these documents. It will be a huge embarassment if these auditors start contradicting the CBN and IN COURT.

The CBN have carried out their audit and published evidence of their findings. The CBN does not have jurisdiction over the auditors. The banks and their auditors, have not come out with any evidence in support of their innocence, and yet you want us to worry about a possible contradiction in court?

mightlove:

@Jarus
Please, can you give us details on how iliquid and insolvent the five banks are. It seems you've got all the information on how iliquid and how insolvent the 5 banks are.

Read the papers and find details. The figures are all around. I'm sorry, I can't spoonfeed you.

, yes o JARIUS, do share

I read BusinessDay's predictions as well as Vanguard's. If any Nairalander want me to agree with BusinessDay's, I see no reason why I should not agree more with Vanguard's since they spelt out details and modus operandi.


@OYB_MEND, Jarus, biina, adigun101

You argue at though you have all the facts. Relax, the truth will come out. This one cannot be swept under the carpet.


Jarus, please comment on the Vanguard's publication of March 2009, long before Sanusi was appointed.

The failed story of the Nigerian Nation is lined with Good Intensions carried out through wrong means.

It is of utmost importance that whatever sanusi wants to do, he must do it the right way otherwise, it will come home to roost sooner than later

If in doubt, Ask Obasanjo

Their Liquidity Ratios ranged from 17.65 per cent to 24 per cent as at May 31, 2009. (Regulatory minimum is 25 per cent).
All 5 banks had CARs below the regulatory required 10%, with the worst being 1.01%

Biina

Speaking based on facts pr from hearsays?

lol

I even applaud Biina and Jarus for finding time out to answer inconsequential questions.

I don't even need CBN's liquidity ratio reports to know that these banks are as good as dead!

We are talking of banks on a  borrowing spree at the interbank, when some others are contributing to the line. No way! that bank has to be overhauled, starting with a decisive sack of its management.

It's even worse when the situation was as a result of financial crime, as opposed to mere managerial incompetence.