The Central Bank of Nigeria yesterday read the riot act to the eight rescued banks, saying it might as a last resort be compelled to liquidate them or sack their non-executive directors if they refuse to cooperate with the consultants hired to re-package the banks for sale to core investors.

CBN governor, Sanusi Lamido Sanusi, was said to have made this known at an interactive meeting in Abuja with the managing directors and executive directors of the rescued banks, their non-executive directors, the CBN appointed consultants and major shareholders.

The shareholders according to a statement from the banking watchdog “unanimously agreed that the board and the principal shareholders of the affected banks will collaborate with the CBN and advisors to successfully carry out the recapitalisation of the affected banks.”
Stakeholders, according to the CBN, “found the meeting informative and acknowledged their support for the CBN reform programme.

“A number of stakeholders proposed that the CBN holds more of such interactive sessions with stakeholders to provide the forum for continued cooperation.”

The CBN in a statement signed by its Head of Corporate Affairs, M.M. Abdullahi, said it informed the stakeholders that the Asset Management Company as proposed could provide the banks with the much needed liquidity and facilitate their recovery.
The CBN said the objective of the meeting was to inform the stakeholders about plans for the implementation of the second phase of the on-going banking sector reforms.

http://www.thisdayonline.com/nview.php?id=164306

Moved

all is well in Jesus name.

Lamido in Action

Seriously, its about time that neccesary steps are taken to forestall a looming crisis in that sector, customers' confidence in the ailing banks have already been eroded, as too much damages have been done by the erstwhile CEOs, i'd rather see those banks put up for sale than see a lot more bankers loose their jobs.

it is quite astonishing to see that a so called pastor CEO had amassed so much wealth and he's yet to be arrested. This clearly is sending wrong signals to future ceos as well as the outside world. The government should not hesitate to confiscate properties belonging to the directors of the ailing banks and use proceeds from it's sales to bail out some of the banks before selling them, but then again, selling those banks is not the ultimate solution, as lessons should have been learnt and culprits punnished, while corporate governence should be instilled back into the system by adequate monitoring by the regulatory bodies.

Sanusi and the Northern cabal just wants to get rid of south-own banks
Just take a look at UNITY Bank, Its about the worst bank in the country and nobody is lookn at it
He should go to hell with his policies, mtcheeew.

@el prinz, i seriously think that the issue at hand is way beyond tribal sentiments, if the akingbolas and ibrus had not mismanaged the public funds left in their care, sanusi would probably have taken a different approach if "he wants to get rid of south own banks", what i am saying is that there is a rot in the system, and if proactive measures wasnt taken, then the fire brigade approach is all we've got.

I pray that discretion will come into play this time

While Sanusi is blowing hot, I think it is high time the names of the banks that are not cooperating with CBN be made public. I doubt if it is all the  eight ailing banks that are not cooperating. Some may not be cooperating due to personal interests of the non-executive directors. The statement by Sanusi refering to all the eight banks will only cause panic among the customers of these banks and this i think is not in the best interest of these banks while they try to recapitalize. Threatening to allow the banks to fall is pouring fuel into fire rather than stabilizing the economy.

However, we need more information from Sanusi on what he refers to as "NOT COOPERATING" or maybe the banks can come to the open to tell us the other side of the story, though it is obvious CBN wants to sell these banks. He that is down needs fear no fall.

We still need to understand Sanusi's motive

is that really the best option?

El prinz:

Sanusi and the Northern cabal just wants to get rid of south-own banks
Just take a look at UNITY Bank, Its about the worst bank in the country and nobody is lookn at it
He should go to hell with his policies, mtcheeew.

I don't think Sanusi heaped FALSE allegations on any CEO of those banks. Were they innocent of the allegations levelled against them? Nah, the evidences are there. I think, we should learn to see things first from the objective point of view b/4 bringing in sentiments.

On UNITY BANK, I hope u understnd how banks are assessed and rated. THe health of a bank is not determined by the fineness (or otherwise) of its buildings, the noise-making and media campaigb ("Cars will run on water & such", and the big cars their executives and staff are driving. Nah. U really need to understand how bank rating works, and in particular what nailed those banks whose CEOs were ousted.

@Topic
I don't think Sanusi said that to mean it, but to instil fear in the director to act in accordance with corporate governance tenets. He (Sanusi) will be the worst fool to think about liquidating any bank in Nigeria today.

I have aquestion. Has it been ascertained that these banks cannot survive without being sold or Sanusi just wants to sell these banks at all cost?If the banks can survive without being sold, why not allow shareholders to recapitalise their banks. Sanusi is not straightforward, he has his hiidden agenda. The CEOs that refuse to cooperate with him know that selling the banks might not be the best options considering the fact that some Nigerians that have shares in these banks can still recapitalise the banks. Let these banks go to the stock market, if they cant make enought capital, then let him go ahead and sell them. I hear somebody talking abount bankers losing their Jobs. I can say that UBA records the highest casualties after Oceanic. Remember, UBA is strong according to to SLS. Diamond and Fidelity also cut staff strenght, so retrenching is not a sign of distress.

El prinz:

Sanusi and the Northern cabal just wants to get rid of south-own banks
Just take a look at UNITY Bank, Its about the worst bank in the country and nobody is lookn at it
He should go to hell with his policies, mtcheeew.

i think you read too much warped articles. how can merely LOOKING  at U nity bank tell you the bank's got problems. it was the same that JUST LOOKING at the failed told us they were all ok. how right were we?

ochukoccna:

While I do not fault Sanusi for blowing the whistle on the banking sector rot, he should have done it more discretely like the Americans handled Allan Stanford & his ilk. He created unnecessary panic & also fueling it with incendiary statements forgetting that insanity is pouring 50 liters of petrol into a burning fire and believing 2 sachets of pure water will quench the fire.

Nicely put!

slap1:

is that really the best option?

in the first paragraph it said

The Central Bank of Nigeria yesterday read the riot act to the eight rescued banks, saying it might as a last resort be compelled to liquidate them or sack their non-executive directors if they refuse to cooperate with the consultants hired to re-package the banks for sale to core investors.

xcuse me ooo. what about the money he dumped on those banks to give them a life?

I'd rather not pay attention to anything written by thisday newspapers. Those guys have been anti-sanusi from the start, and this article smacks of sensationalism.

hopeless country!

I wonder why some people are always so sentimental and unwilling to learn, Sanusi has done a great job and pls lets not write off the fact that this trouble started a long time ago and soludo did nothing about it.
Someone said they should let stakeholders provide money to take over the banks, pls let me ask who are the stakeholders? the same dangote and co who put these banks in this situation. incase you dont know all Nigerian banks posted a loss in their year end result with Bank 'car will run on water' phb stunnin us all with a loss of over 480bn Naira and madam 'stallion of d bankin industry' oceanic with over 400bn Naira, Please lets cut the sentiments, these banks cant survive if they dont make strong moves. When the whole wahala started with the first 5banks, dey said the bailout money is over 1.3trillion naira only God knws how much it will be now and who wants to provide that kind of money when the country's budget is barely 3trillion naira.
Someone also asked wht the money given the banks was meant for, my dear the money's for customers like u and me so we can go to ur banks, write a cheque and get money ou. Its not for them to recapitalise,
Pls lets be realistic, reasonable and shun sentiments. The banks were close to their doom,

tnx for answering my question. if u read my other post u wud c am not sentimental. sanusi is good but over-speeds.

All these actions by sanusi could be regarded as both subjective as well as objective because the intervention was very timely but was done with a lot of malice and noise.I was personally affected in the downsizing exercise in one of the ailing banks as I was able to see things clearly as an insider.The situation of these banks were more pathetic than what was presented.You need to understand that loans can only be bad if the bank executives want it so but most of the bad loans that wrecked the banks were given to family and friends.All the directors have loans running into billions of Naira and the truth remains that if CBN had not pumped in the 400 Billion Naira to the 5 banks that were initially affected.A lot of customers would still be crying now and all (Not some) of the bank's staff would have gone home by now.
Sanusi did the needful,but he started it from his most dreaded enemies (Akingbola and Co).
Tho there are still some other banks that are as distressed as these banks in question but a lot of cover up activities have kept them floating.

To be honest with NL, there is tribalistic sentiments in what Sanusi has done and what he is still doing. Unity Bank, using any parameter, is not healthy. Sanusi told us that Unity Bank was given up to June this year to re-capitalize. Why were other Banks (southern Banks) not given the same opportunity and mandate? Think about this.
Somebody said that UBA had more casualties in staff disengagement. This is because, if it is true, UBA has much more staff than any other Bank in Nigeria. Think of the number of Branches it has let alone its staff strenght. Even after that, UBA still has the highest number of staff in the Nigerian Banking industry. Think about it.

Another twist. Would really be disappointed if it doesn't reach a reasonable conclusion beneficial to the depositor.

We watch as events unfold;whether or not mallam sanusi has a northern agenda will soon be found out

men nigeria is a waste of time nation, if akingbalo has all those money in is account. why can they put it back into the bank and close topic. let CBN do whatever i careless, but investing in shares is one thing i will never do again.

Banks are becoming the biggest problems in Nigeria,
I hope every bank in Nigeria does not fold this year
That would be a disaster.

Why is SANUSI making noise?

If Sanusi is covering up for any bank, worst case, when his tenure ends, someone else will come and liquidate those as well, but we have to start from somewhere.

Sanusi keep on d good work, pple must hate you but dont mind dem, If i were sanusi i woden have injected money into dos banks so dat all these pple ranting would have undastood. Nonsense

@te

texazzpete:

I'd rather not pay attention to anything written by thisday newspapers. Those guys have been anti-sanusi from the start, and this article smacks of sensationalism.

That is most probably untrue.

The very first media interview granted by sanusi after the CEOs sacking was by THISDAY.

Infact, in the 'prologue' to the interview, THISDAY stated, in its own words: few hours after the sacking of 5 bank CEOs, CBN gov, sanusi granted an interview to thisday in the ikoyi residence of its publisher, prince nduka obaigbena,

It carried photos of both of them sitting side by side.

Personally, i wondered: (1) why sanusi had to grant such momentous interview in obaigbena's home( most likely during office hours) (2) why thisday had to 'show-off' by stating it was held in their publisher's residence.

El prinz:

Sanusi and the Northern cabal just wants to get rid of south-own banks
Just take a look at UNITY Bank, Its about the worst bank in the country and nobody is lookn at it
He should go to hell with his policies, mtcheeew.

I dont understand why you think Sanusi is trying to get rid of Southern owned banks. . . Tribal sentiments is pretty daft you know
And you said Unity Bank is the worst in the country, on what basis is it worse