The next thing we will hear is that Peter Ololo's name has been removed.

The importers are been owed by the FG, that is why their were exempted.

texazzpete:

Here's another challenge for you. Using the CBN debtors' list, show us how 'most of these debts are owed by the Government'.
The fuel importers have accepted that the Government owes them N46 billion. As i've said before, these importers in turn owe the banks over 400 billion naira. Even one as intellectually challenged as yourself can see the clear difference between N46 billion and N400+ billion.

But we digress! it is no business of the CBN Governor or even the bankers if the Government pays or not. If i take a loan from a bank, it is not a matter of concern of my banking officer that my salary gets paid or that i sell my car. All bankers should care about is the loan being serviced as agreed upon.
Without adequate collateral, there's little or nothing the banks can do but to wring their hands in dismay.

I recap. For sanusi and the shareholders in the bank, it does not matter how you get the damn money. Loans should be serviced and loans of that magnitude should have been backed up with sufficient collateral. Naturally, your precious bank CEOs turned the other way.

As Obama used to say about John McCain, "You just don't get it"!

Actually most of those loans were collateralized. The reason CBN is blurring the line between no collateral and inadequate collateral is because the portion that is not collateralized pales in comparison to the loans with inadequate collaterals. The problem was that the asset collaterals were impaired and when written down, they became automatically inadequate. The banks could not do anything because at the point the loans were given the collaterals were adequate and even if they enforce their right to sell, the proceeds would have been so meagre. Most of the banks decided to keep the collaterals and hunker down, hoping to ride out the storm.

So, the notion that the MDs were just giving out loans without collaterals is not just bogus, it is dishonest. They were guilty of bad investment decisions and frankly, the Board of those banks should have removed them. If all they have been peddling is true, why would they launch a motion in the court that will drag the court process for years instead of choosing the speedy process to prove their point. Thankfully, the Judge refused and decided to hear the prelim and substantive suit simultaneously.

Having said that, there is almost no chance that the MDs did not enrich themselves in one way or the other. I have no interest in defending them. They should clear their names through the court. I am only concerned with the over-exaggeration and propaganda being used by CBN. They could easily have achieved the same purpose without further destroying shareholder's value and sending about 100,000 bank workers out of job.

coolG:

Actually most of those loans were collateralized. The reason CBN is blurring the line between no collateral and inadequate collateral is because the portion that is not collateralized pales in comparison to the loans with inadequate collaterals. The problem was that the asset collaterals were impaired and when written down, they became automatically inadequate. The banks could not do anything because at the point the loans were given the collaterals were adequate and even if they enforce their right to sell, the proceeds would have been so meagre. Most of the banks decided to keep the collaterals and hunker down, hoping to ride out the storm.

So, the notion that the MDs were just giving out loans without collaterals is not just bogus, it is dishonest. They were guilty of bad investment decisions and frankly, the Board of those banks should have removed them. If all they have been peddling is true, why would they launch a motion in the court that will drag the court process for years instead of choosing the speedy process to prove their point. Thankfully, the Judge refused and decided to hear the prelim and substantive suit simultaneously.

Having said that, there is almost no chance that the MDs did not enrich themselves in one way or the other. I have no interest in defending them. They should clear their names through the court. I am only concerned with the over-exaggeration and propaganda being used by CBN. They could easily have achieved the same purpose without further destroying shareholder's value and sending about 100,000 bank workers out of job.

Thank you Sir, that's my point.

We are speculators. Only the court of law can unveil the truth.

Quote from: texazzpete on Yesterday at 08:08:09 PM
I'm sorry, but those are facts. Is the CBN debtors' list a myth too?
Is it standard banking practice to use shares are collateral for loans?


If you do not know that shares are collateral for loans, does it not disqualify from participating so strongly in this ongoing conversation? If you do not understand the fundamentals of an underlying issue, it might be difficult for you to contribute effectively.

By the way, CBN 'facts' are not fact, it is called opinion. That is why they are in the court to prove that their opinion (allegation) is fact.

The CBN list is not a myth. It cannot be dismissed as myth because some debtors agreed with the list that they are owing and some of them are now paying up. However, many names and amounts on those list are either false or do not exist. For example, a new case just came up where Vaswani was alleged to be owing 5B Naira to Spring bank meanwhile their account balance with Spring bank is zero. They have challenged the bank to publish the account details. To sum up, the company in question has a credit limit of 5B Naira and the CBN auditors lifted the limit as a loan. CBN went ahead and splashed the name as a rogue debtor . Do you think they should sue for damage to reputation? Should the regulator who mistake credit limit for actual non performing loan be held accountable for ineptitude? This is just one of the stories with the list. You can see why rational people believe the list is not a fact but an opinion.

coolG:

Quote from: texazzpete on Yesterday at 08:08:09 PM
I'm sorry, but those are facts. Is the CBN debtors' list a myth too?
Is it standard banking practice to use shares are collateral for loans?


If you do not know that shares are collateral for loans, does it not disqualify from participating so strongly in this ongoing conversation? If you do not understand the fundamentals of an underlying issue, it might be difficult for you to contribute effectively.

By the way, CBN 'facts' are not fact, it is called opinion. That is why they are in the court to prove that their opinion (allegation) is fact.

The CBN list is not a myth. It cannot be dismissed as myth because some debtors agreed with the list that they are owing and some of them are now paying up. However, many names and amounts on those list are either false or do not exist. For example, a new case just came up where Vaswani was alleged to be owing 5B Naira to Spring bank meanwhile their account balance with Spring bank is zero. They have challenged the bank to publish the account details. To sum up, the company in question has a credit limit of 5B Naira and the CBN auditors lifted the limit as a loan. CBN went ahead and splashed the name as a rogue debtor . Do you think they should sue for damage to reputation? Should the regulator who mistake credit limit for actual non performing loan be held accountable for ineptitude? This is just one of the stories with the list. You can see why rational people believe the list is not a fact but an opinion.

Sanusi doesn't even know the extent of his inaccuracies, his ineptitude, and his ignorance. After removing the CEOs for the wrong reasons and data, he still has the gut to call for those people to be shotf or grand scale corruption Everything about this Sanusi man will turn out to be fake; his qualifications, his so-called experience, and even his funny looking bow ties.

otukpo:

simple undertanding. the FG is owing these fuel importers. period.
Not double standard.

What other group of businessmen is thr FG owing? Road contractors? Suppliers to the army? Subcontractors to PCHN? Contractors that supply food to schools?
You want the list to go on?
With time these people would have a right to ask to be delisted too.

Clearly double standard.

naijaking1:

Sanusi doesn't even know the extent of his inaccuracies, his ineptitude, and his ignorance. After removing the CEOs for the wrong reasons and data, he still has the gut to call for those people to be shotf or grand scale corruption Everything about this Sanusi man will turn out to be fake; his qualifications, his so-called experience, and even his funny looking bow ties.

My reference to the regulator's ineptitude was to the CBN auditor who made that mistake. It will be harsh for me to label the CBN governor inept in this particular case because he could not have known about the examiner's mistake. But make no mistake, i have strong reservations about his suitability for the position. However, in the ongoing bank problem, i believe (my personal opinion) his motive was well-intentioned but his execution was so poor that it is almost endangering the entire economy. So, i agree with you on most points but i think the situation could be rescued if he understands he occupies a powerful position and dial down his rhetorics or at least stop making unguarded statements that will force the banks into a road of no return.

What if the Govt just pay the bank the monies owed to the banks directly instead of paying the exporters themselves
The government wont need to even pay them just subtratct the money from what CBN already gave the banks

Dis Guy:

What if the Govt just pay the bank the monies owed to the banks directly instead of paying the exporters themselves
The government wont need to even pay them just subtratct the money from what CBN already gave the banks

Layers and layers of middle-men is a form of non-productive service in Nigeria, and a form of corruption if you ask me. Those middle-men are apparently close to the seat of power, nobody, not even Sanusi can remove them

Sanusi`s motive lies in his articles, read with interest.

Sanusi on Yoruba`s
"For so many years, the Yoruba have inundated this country with stories of being marginalised and of a civil service dominated by northerners through quota system. The Federal Character Commission has recently released a report which shows that the South-West accounts for 27.8% of civil servants in the range GL08 to GL14 and a full 29.5% of GL 15 and above. One zone out of six zones controls a full 30% of the civil service leaving the other five zones to share the remaining 70%. We find the same story in the economy, in academia, in parastatals.

Yet in spite of being so dominant, the Yoruba complained and complained of marginalization"


http://www.elombah.com/index.php?option=com_content&view=article&id=868:yorubas-are-the-problem-with-nigeria-by-sanusi-lamido-sanusi&catid=57:sanusi-lamido-sanusi&Itemid=79

Question?
Who are the fuel importers? And who is government?

One and the same, i bet you'll say. End of story.

so, they're only favouring themselves!

George_D:

so, they're only favouring themselves!

That's the point we've tried to make all this while. Bank CEOs maybe corrupt, but the problem goes higher than that. If you cut off a problem from the middle, it would regenerate, better to go to the source. Look at the seat of power.

yes. change must start from the head downwards.