PapaBrowne:

MrCrackles, watch as it unfolds.
First, [/b]Waziri goes.
[b]Second, the courts would be allowed to judge fairly on the suits brought by the shareholders, CEO's etc against the CBN and vice versa.
Third, the shareholders/CEOs win their cases and CBN has to comply with the court decision. The CEO's however won't be allowed to return 2 the banks, which I think is fair.
Fourth, [/b]Sanusi is angry and frustrated because he can't go further with his plans.All his plans are questioned by the new executive.
[b]Fifth, He is fed up and resigns.
Watch as the next two quarters play themselves out.
Check out the profile of the new AGF and you will get the message.

I wish all these happens soonest. I never liked Mallam Sanusi's approach to the banking reforms, it only shows where his sentiments are. The banks weren't at their best state at the time he came into office, but they were certainly not going to collapse as he claimed. He showed complete arrogance in his approach. He weakened the confidence  of Nigerian populace in their bank, and exaggerated the whole situation without considering the economy. I hope, he will be thought the right thing or shown the way ought. This madam Farida sef, she goes into action without considering the legality and forgets about the Real ones she suppose to be pursuing.

That man has single handedly taken us back at least a decade.

@Beaf
then how do u reconcile what u state above with this



EIB Grants Three Banks $330m


The Vice-President, European Investment Bank (EIB), Mr. Plutarchos Sakellaris, yesterday in Lagos, announced a [size=16pt]$330 million loan to three Nigerian banks.[/size]


He however, denied reports that the bank plans to acquire three out of the eight rescued banks in the country, stressing that EIB is only interested in equity investment in Nigeria.Sakellaris, made these known at a press conference.


The banks that benefited from the largesse are First Bank of Nigeria Plc, Guaranty Trust Bank Plc and Stanbic IBTC Plc.The EIB boss said his institution is desirous of helping the Nigeria rebuild its infrastructure. The EIB, which is owned by EU governments said the funding for trio, would be used to contribute to infrastructure development in the country.


He added that EIB invested in the banks because of its support for the recent reforms in the entire Nigerian banking sector.Specifically, he said the three banks have shown leadership governance, reporting and risk management, adding that these are excellent base for future cooperation between EIB and its Nigerian partners. He added: "We look forward to working closely with three of the strongest banks in Nigeria to increase infrastructure finance in the country, following regulatory reforms and the transformation of the banking sector. The three banks should be commended for their leadership in governance, transparency and risk management."


Sakellaris said Nigeria’s central bank has made reforming the banking system its top priority following a $4 billion bailout last year of nine institutions found to be so weakly capitalised and posed a systemic risk.He added that based on the confidence EIB has in the reforms and in Africa, it invested more than 79 billion euros in projects in Europe, Africa and beyond. The bank had provided more than 220 million euros of funding to Nigeria.

http://www.proshareng.com/news/singleNews.php?id=9240

@Beaf

where am from they say money talks. . .and bullshit walks

Real institutions are voting for Sanusis reforms with real cash on the line
while u are full of bullshit spewing nonsense on a message board

your ethnic agenda always seems to becloud your sense of good judgement. . .sad

@Posted by: paddy_lo 

So getting a loan is advancement?
God, I have a headache!

paddy_lo:

@Beaf

where am from they say money talks. . .and bullshit walks

Real institutions are voting for Sanusis reforms with real cash on the line
while u are full of bullshit spewing nonsense on a message board

That is the village where they tap palmwine.

PapaBrowne:

Idiopathic, your position is understandable especially when viewed from the fact that your are judging based on the limited information available to you.If you had much more information and real data on the true condition of the banks before and after Sanusi's actions, you, being a reasonable and brilliant fellow, you would judge differently.

I would just pose one question to you.
The economic crises started in Nigeria in January of 2008(stock price crash) and accelerated in October 2008(Oil price fall).
How come for over a year after up until August 2009, banks were still able to pay huge salaries, meet up with depositors demands, build more branches, pay dividends, etc and yet they did not collapse.
How come Sanusi tells us they were about to collapse when there were no signs of such??
They had problems like every other bank worldwide did, no doubt. But they surely weren't about to collapse
Always ask questions. Don't just swallow hook, line and sinker every thing you hear.

---------------------------------------------------------------------------------------------------------------
I will endeavour to answer some of the questions you posed:

1) Are you saying paying huge salary is a sign of health? Intercontinental had already been bailed out by Soludo before the arrival of Sanusi. This was while they were still paying ridiculous salaries. I own Oceanic shares and can't remember them paying any dividend or declaring bonus in past 5 years.

2) A lot of these new branches were actually not profitable. Have you queried the wisdom of having 3 branches of the same bank on one (1) street. Most of buildings housing these branches were actually owned by the thieving CEO's. That was a criminal conflict of interest and duplication of branches was not a business decision but aimed at 'self-enrichment.

3) What do you say about falsifying annual reports? If they were healthy, why were they publishing 'cooked' reports? How come their usual bumper profits nose-dived immediately after the audit?

4) Erastus Akingbola continues to claim ownership of all the properties alledged to be in his name. Do you think any business can be profitable with these kinds of greedy CEO's with sticky fingers?

5) On a broader note, we have a moribund economy in Nigeria. The banks spend a sizeable portion of their earnings fuelling generators.  Personal loans, mortgage is a small % of their income and they are invincible in 'global investment banking and derivatives trading'. Yet they are able to pay bumper salaries to their workers. Where aret they getting all their profits from?

6) I live in the UK and was amazed to realise that cashiers in these banks earn as much as Their counterparts in the UK (5th largest economy in the world). How do you explain this anomaly?

These banks were a pack of cards that would have collapsed if Sanusi hadn't arrived on the scene.

So getting a loan is advancement?
God, I have a headache!

u are not seriously asking me that question are u

why did Bear stearns,AIG and other banks collapse in 2009?

because they couldnt get any loans(short or long term),how did Goldman sachs survive
cause warren buffet stepped up with a vote of confidence in the management and provided $10billion when it mattered

the ability of a bank to attract capital is very important,its ratings if poor and such can push up its cost of funds
leading to insolvency

the point is the EIB(a very reputable bank by the way),would never have advanced any loans to either Oceanic or Intercontinental
i doubt if any bank or Financial institution in the world would have done so

due to the poor corporate governance issues. .and eroded capital

your inability to understand this simple Fact is a shame
in the advanced world,if u cant make it u go bankrupt
and if u decide to get bailed out,then u dance to the Govt tune

u cant have it both ways

Beaf

I thought banking is all about borrowing and lending? Thereafter everyone derives a benefit
and witnesses an increase in fortune and wellbeing, if all works out well. Is that not the advancement
we all want.

If some people in the process do abracadabra and corner the money as my auntie dem do, breaking all
the rules and breaking the bank in the process and somebody blow whistle, who is to blame?

If some people no want the man to blow whistle, wetin we go call dem now?

Beaf:

@Posted by: paddy_lo  

So getting a loan is advancement?
God, I have a headache!

That is the village where they tap palmwine.

-------------------------------------------------------------------------------------------------------------------
Beaf,
you can't get a loan without a good credit rating. Getting loan is an expression of confidence.
Sanusi has established an atmosphere of transparency in nigerian financial services industry, which hitherto had been opaque.
The problem with nigerians is that we prefer 'laissez faire' attitude Soludo adopted with the bankers. But, it usually comes consequences.

I have gone tru a lotof post concerning this thread from you guys and i really hve to say some of you are not getting things right.
I just lost my job in one Intercontinental bank due to the lingeering crises but this would never make me castigate sanusi the way you people have done.
I was an insider and i saw almost all that happened right from an insider point of view.
Tho Sanusi has his own shortcomings but I bet to say he did what was highly needed and his actions were very timely tho it was so clear that some of hi actions were very malicious targetted at his percieved enemies (eg Akinbgola ,Ibru and co). He has had this long stnding brawl with someof these pple while he was MD of first bank and I can authoritatively say that He personally started a de-mrketing campaign against intercontinental bank especially last yr while in FBN.
subsequently , these sacked MDs of these banks have committed gravious havocs in their banks which words wouldnot be able to describe.
The situation later became the tale of a player turn refferre in the same football game, you can be sure of what will happen to his opponents.

Let keep our fingers crossed as the situation unfolds.

I have gone tru a lotof post concerning this thread from you guys and i really hve to say some of you are not getting things right.
I just lost my job in one Intercontinental bank due to the lingeering crises but this would never make me castigate sanusi the way you people have done.
I was an insider and i saw almost all that happened right from an insider point of view.
Tho Sanusi has his own shortcomings but I bet to say he did what was highly needed and his actions were very timely tho it was so clear that some of hi actions were very malicious targetted at his percieved enemies (eg Akinbgola ,Ibru and co). He has had this long stnding brawl with someof these pple while he was MD of first bank and I can authoritatively say that He personally started a de-mrketing campaign against intercontinental bank especially last yr while in FBN.
subsequently , these sacked MDs of these banks have committed gravious havocs in their banks which  words wouldnot be able to describe.
The situation later became the tale  of a player turn refferre in the same football game, you can be sure of what will happen to his opponents.

Let keep our fingers crossed as the situation unfolds.

i understand where u are coming from. . me like u too am taking a siddon look approach. . .

if it were up to me i would choose chukwuma soludo over sanusi
but its not up to me,at least not now. . .

Soludos achievements cannot be rubbished or washed away no matter what sanusi does

also something that bothers me about sanusi is his recent hint at lowering capital requirements for new banks

and raising it for others

i think the cap requirement should be left at N25billion and if anything should be raised to N150bln ($1bln dollars)
Nigerian banks should have the ability to fund big ticket items like power and infrastructure

Like seun said the mistake the Yaradua govt made was turning one of the players into a referee, that even goes against the spirit of best practice and corporate governance that he Sanusi preaches.
That being said i feel no pity for those thieving CEOs, i only pity the workers who were laid off and have to start from scratch again. The consolidation that was supposed to make credit facilities more accessible to Nigerians never materialised but just ended up being a tool for Billionaires to make more billions.

PapaBrowne:


I would just pose one question to you.
The economic crises started in Nigeria in January of 2008(stock price crash) and accelerated in October 2008(Oil price fall).
How come for over a year after up until August 2009, banks were still able to pay huge salaries, meet up with depositors demands, build more branches, pay dividends, etc and yet they did not collapse.
How come Sanusi tells us they were about to collapse when there were no signs of such??
They had problems like every other bank worldwide did, no doubt. But they surely weren't about to collapse
Always ask questions. Don't just swallow hook, line and sinker every thing you hear.

Up until Enron crashed, were the workers not being paid salaries? All the banks that went under in the US, did they fail to pay salaries? Were there any stories of Lehman Bros failing to 'pay salaries and build more branches' in the months before the collapse?

See the kind of question a so-called economics specialist is asking. This only goes to show you armchair critics really are clueless.
See the

paddy_lo:

i understand where u are coming from. . me like u too am taking a siddon look approach. . .

if it were up to me i would choose chukwuma soludo over sanusi
but its not up to me,at least not now. . .

Soludos achievements cannot be rubbished or washed away no matter what sanusi does

also something that bothers me about sanusi is his recent hint at lowering capital requirements for new banks

and raising it for others
i think the cap requirement should be left at N25billion and if anything should be raised to N150bln ($1bln dollars)
Nigerian banks should have the ability to fund big ticket items like power and infrastructure

I think you should read the news report properly, i know nigerian journalists can be half baked sometimes,
but i read some where about different capital base for different categories instead of having one flat rate for banks
like a mortgage bank should have a different capital base to an investment bank or agricultural bank, they are all doing the same thing at the moment

"The question we are asking ourselves is must every bank compete in the same space, must every bank be an international bank. Can we not have regional banks, can we not have specialised banks," Sanusi told a banking conference in Lagos.

"What we are doing now is categorising banks and we will come out with different capital requirements for the banks."

234next

Bradford and bigley should have a different capital base and focus to say halifax

paddy_lo:

u are not seriously asking me that question are u

why did Bear stearns,AIG and other banks collapse in 2009?

because they couldnt get any loans(short or long term),how did Goldman sachs survive
cause warren buffet stepped up with a vote of confidence in the management and provided $10billion when it mattered

the ability of a bank to attract capital is very important,its ratings if poor and such can push up its cost of funds
leading to insolvency

the point is the EIB(a very reputable bank by the way),would never have advanced any loans to either Oceanic or Intercontinental
i doubt if any bank or Financial institution in the world would have done so

due to the poor corporate governance issues. .and eroded capital

your inability to understand this simple Fact is a shame
in the advanced world,if u cant make it u go bankrupt
and if u decide to get bailed out,then u dance to the Govt tune

u cant have it both ways

Yes I am. You have a big problem when it comes to critical thinking, you always want to drop names and pluck arguments from thin air; at the same time as being rude.
First of all, understand the issue at hand before jumping in an firing your mouth in ways that make you look like you aren't smart.

None of the bank's in the story you posted were affected by Sanusi's agbero tactics, yet you somehow posted them as proof. You see how far off point you are?
Those banks would have been able to get loans anyday and anywhere.

I will address others posing sensible counter arguments to mine (eg citizenY, idiopathic and Edoyad). You don't know what you are talking about.

idiopathic:

-------------------------------------------------------------------------------------------------------------------
Beaf,
you can't get a loan without a good credit rating. Getting loan is an expression of confidence.
Sanusi has established an atmosphere of transparency in nigerian financial services industry, which hitherto had been opaque.
The problem with nigerians is that we prefer 'laissez faire' attitude Soludo adopted with the bankers. But, it usually comes consequences.

Those banks already had a good credit rating before Sanusi popped up. In fact, their reckoning would have dropped a bit with the advent of Sanusi (like the rest of our banking system).

citizenY:

Beaf

I thought banking is all about borrowing and lending? Thereafter everyone derives a benefit
and witnesses an increase in fortune and wellbeing, if all works out well. Is that not the advancement
we all want.

If some people in the process do abracadabra and corner the money as my auntie dem do, breaking all
the rules and breaking the bank in the process and somebody blow whistle, who is to blame?

If some people no want the man to blow whistle, wetin we go call dem now?

Sanusi should have prosecuted crime where it was found, instead, he declared crimes before they were found and some of his actions have already been reversed by law courts. Among other things, he went a long way to destroying the faith foreign investors had in our economy by breaking a fundamental banking code, bank-client confidentiality, by publishing a list of debtors. It was all the more heightened when the list turned out to be wildly inaccurate, giving the unacceptable impression that the CBN is incompetent.

edoyad:

Like seun said the mistake the Yaradua govt made was turning one of the players into a referee, that even goes against the spirit of best practice and corporate governance that he Sanusi preaches.
That being said i feel no pity for those thieving CEOs, i only pity the workers who were laid off and have to start from scratch again. The consolidation that was supposed to make credit facilities more accessible to Nigerians never materialised but just ended up being a tool for Billionaires to make more billions.

That should have been Sanusi's 100% focus, instead of wrecking confidence in the banking system, spreading rumours and making borrowing money seem like a criminal action. A lot of people go on about collateral, but modern banking is about confidence and trust; in any event, collateral is not written into law.

Beaf:

It is the developing of financial instruments that are as good as raw cash. In the modern World, trade is no longer brick and morter and raw cash; trust, ideas, methods, techniques, positions, confidence etc are marketable.

For him, banking is all about raw cash, trust and instruments are criminal to him. But then, what do you expect from a bushman?

How does financial instruments come into your anti-Sanusi debate?

Ibime:

How does financial instruments come into your anti-Sanusi debate? 

Bank loans and debts are examples of a financial instruments.

Beaf:

Bank loans and debts are examples of a financial instruments.

So because he clamped down on unsecured bank loans means he is anti-financial instruments?

Financial instruments is a broad definition.

If Ibime refuses to eat bread, does that mean Ibime is anti-carbohydrates?





Can you clarify. . . are you making a religious argument here?

@Ibime
You nearly confused me. I think beaf's argument is simple

(cash),trust, ideas, methods, techniques, positions = GENERAL CONFIDENCE in the bank.

Cash is good; but it doesn't stop there. General confidence (which includes all the above listed items) is the base of any bank. No bank in the world has enough cash (or can have enough cash! ), so none can survive a run at the bank because of this. Banks operate on leverage. The key is to find the rational boundaries of that leverage and to  regulate it properly. That is Sanusi's job. By "rational boundaries" I meant bearing in mind all the facts of banking and the general Nigerian economy. He is not the MD of a bank. He is the governor of the central bank of Nigeria. 

Sanusi may have done more harm than good to the growth of the banking system and the general economy.

^
Exactly!

@Ibime
I couldn't have said it better. Modern economies are not the wooden crate Sanusi is making them out to be. The dude is just to bush to see that human foibles and strengths are as important as physical cash in any economy. He cannot operate with the levels of sophistication that his office deserves.

It is the developing of financial instruments that are as good as raw cash. In the modern World, trade is no longer brick and morter and raw cash; trust, ideas, methods, techniques, positions, confidence etc are marketable.

For him, banking is all about raw cash, trust and instruments are criminal to him. But then, what do you expect from a bushman?

This statement explains in total my key grouse with Sanusi! Financial instruments!! That's the secret to development in the modern world!
A culture was beginning to evolve in the Nigerian financial sector where massive projects were beginning to get backed by well structured albeit very risky financial instruments.
Sanusi came and destroyed such a beautiful embryonic culture that was evolving. It's painful if you understand what Sanusi has killed in this country.
Financial instruments would have funded massive road projects, modern railways, massive housing projects, huge agricultural development, so much would have been done even without a Kobo from the government.

All complex financial instruments are very risky. Risk is the key word for success!
Nigeria is an extremely risky business environment, hence you must fit risk management practices with our existing conditions! You don't just go around punishing people for taking risks.
Sanusi killed risk taking in the financial sector. And until people read more to gain understanding, they would never grasp why investors and financial industry experts are cross with Sanusi.

You lot are jokers.

What was so complex about the loans given out by the failed banks?

Complex financial instruments ko, complex measurement instruments ni!

Structured products are structured over underlying assets, unlike in Nigeria where banks structure products over thin air and other intangibles such as "trust" and "personal relationship". 

CBN has just commissioned a contract with someone I know for work on a 30-year yield curve for Nigeria to help develop the corporate bond market. Naija companies have historically been unable to raise capital by issuing corporate bonds. Guaranty Trust bank has been the first bank to successfully issue corporate bonds just last month while the rest of yall sit on Nairaland raking dust about Northern agenda. I guess these forward looking measures by CBN are all part of retrogressive thinking by Sanusi in his pursuit of a "raw cash" economy.

Ibime:

You lot are jokers.

What was so complex about the loans given out by the failed banks?

Complex financial instruments ko, complex measurement instruments ni!

Structured products are structured over underlying assets, unlike in Nigeria where banks structure products over thin air and other intangibles such as "trust" and "personal relationship".

CBN has just commissioned a contract with someone I know for work on a 30-year-yield curve for Nigeria to help develop the corporate bond market. Naija companies have historically been unable to raise capital by issuing corporate bonds. Guaranty Trust bank has been the first bank to successfully issue corporate bonds just last month while the rest of yall sit on Nairaland raking dust about Northern agenda. I guess these forward looking measures by CBN are all part of retrogressive thinking by Sanusi in his pursuit of a "raw cash" economy.

These people are jokers indeed. They conveniently ignore the massive theft of shareholder funds and value by the CEOs of these banks. The books of the banks have been cooked for years and that fact was bound to become public sooner or later - it was a well known secret.

Time will tell whether Sanusi's actions are prudent. Anyone without as much information as Sanusi does, who comes here to condemn the man's actions, is probably narrow minded, ignorant, or both.

Its always sad to see the Sanusi haters using misinformation and/or disinformation to try and win their arguments.

@papabrowne
U claim to have more info than the rest of us. Could you then be so kind as to furnish the rest of us with your privileged data?
- What were the conditions the banks were in before the CBN intervention? did it differ from the claims made by the CBN that said banks were owing heavily in the Interbank market?
- What is the situation of things presently, and how bad have things gotten due to the CBN actions?
- What should have been the correct course of action for a non-sanusi CBN?

Again please provide facts and figures and not just your opinion.

What if Sanusi did what he did to all these Banks' CEOs to the political leaders be it senate, house or governorship.  i.e sack those who have ran their people to the ground, we would be praising  him,
My bank has been trying to be involved in all these failed banks, but we are not sure what we are dealing because of transparency, We are not sure if he reports provided us are genuine, hence the hesitation,
Sanusi has to start from somewhere, bring back credibility, safety and soundness, Also, failed banks don't need loans, they need capital to grow, otherwise, they'll be more leveraged,

safariman:

[s]What if Sanusi did what he did to all these Banks' CEOs to the political leaders be it senate, house or governorship.  i.e sack those who have ran their people to the ground, we would be praising  him, [/s]
My bank has been trying to be involved in all these failed banks, but we are not sure what we are dealing because of transparency, We are not sure if he reports provided us are genuine, hence the hesitation,
Sanusi has to start from somewhere, bring back credibility, safety and soundness, Also, failed banks don't need loans, they need capital to grow, otherwise, they'll be more leveraged,

Please tell them!

Beaf:

Please tell them!

What do you understand by safariman's statement?

Read it again. It is an indictment of the fraudulent accounting practices of the Ibrus and Akingbolas and a praise of Sanusi.

biina:

Its always sad to see the Sanusi haters using misinformation and/or disinformation to try and win their arguments.

Add to that, the following -

- Lack of common sense
- Sentiments and bias. . . .
- Lack of awareness and piss poor knowledge. . .

Most of the folks criticizing Sanusi here are absolutely deficient in the points raised above coupled with using daft tactics as stated by BIINA above. . .

A few idiots even go as far as saying agbero tactics is what he deployed, what the flying fu/ck is agbero tactics?

You guys need to sit the fugg down, coz ya'all just ho's hating for no reason. . . .

Size up the industry properly and brush up your knowledge instead of spewing poppycocks and gobblydygooks on a public forum!!

Ibime:

What do you understand by safariman's statement?

Read it again. It is an indictment of the fraudulent accounting practices of the Ibrus and Akingbolas and a praise of Sanusi.

I struck out the bit I don't agree with, so no re-read.
The other parts are in agreement with everything I've said so far. Whether fraud has been committed is not my issue as those cases are in court; my issue is Sanusi not having the personality, knowledge or intelligence to head the CBN.

-----------------------------------------------------------------------------------------------------------------------------------
Papabrowne,
I am sure you must be joking
Where are these complex financial instruments you are alluding to? Kindly give me a few examples.
I am not aware of any of these banks being involved in investment banking or derivative trading. The don't give out personal loans, and are almost invincible in the mortgage market. So,what are these risks you are referring to?
Except you want us to believe that giving unsecured billons to their cronies and and buying personal properties all over the world constitutes risk taking.

Please stop beating around the bush and blame the crooks (Akingbola, Ibru)  who wrecked the banks.

Beaf:

I struck out the bit I don't agree with, so no re-read.
The other parts are in agreement with everything I've said so far. Whether fraud has been committed is not my issue as those cases are in court; my issue is Sanusi not having the personality, knowledge or intelligence to head the CBN.

and how does a post approving of Sanusi's actions support your position?

Sanusi,hand go soon touch you.For your mind now,you be Jackie Chan,but last last hand go must touch you