Sanusi Hits Banks Again: Calls Them 'Gambling Centers' - Politics - Nairaland
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| Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 1:46am On Jul 10, 2010 |
[size=14pt]Sanusi hits banks again[/size] Governor of the Central Bank of Nigeria, Mr. Sanusi Lamido Sanusi, on Friday, in Asaba, described most Nigerian banks as gambling centres. Sanusi also described the Nigerian stock market as a casino, where fraudulent business transactions are perpetuated to the detriment of the citizenry. He said politicians, particularly public office holders, were accomplices in the shady deals in which depositors of banks and investors in the stock market were being manipulated. He tongue-lashed politicians for being responsible for the failure of some banks in the country. The CBN governor stated these in a lecture titled, ”The Economy In Perspective: Consolidating The Gains of The Banking Sector Reforms,” which he delivered in Asaba, Delta State capital. The lecture was organised by a non-government organisation, The Knowledge Centre, based in Onitsha-Ugbo, Aniocha North Local Government Area of the state. Sanusi said that members of the management and board of the banks easily gambled with depositors‘ money and colluded with the operators of the stock market for selfish motives. He said the investors in the stock market had been turned to casino players by those who freely manipulated the market, warning depositors not to entrust their money to banks operated by those he referred to as ”gamblers.” The CBN boss, at the event chaired by a former Head of the Interim National Government, Chief Ernest Shonekan, and attended by the Delta State Governor, Dr. Emmanuel Uduaghan; his Anambra State counterpart, Mr. Peter Obi; Managing Director of BGL Plc, Mr. Albert Okumagba; and President of Afreximbank, Cairo, Egypt, Mr. Jean Louis Ekra, reiterated that CBN embarked on the ongoing banking reforms to save depositors and investors from being fragmented by the failed banks. He accused the boards and managements of the banks of creating a false impression about their well-being in order to manipulate unsuspecting depositors, warning that the CBN was poised to put an end to the ugly trend. He said, ”Although financial crisis is an integral part of every capitalist system, banks should stop preventing depositors and investors from Technical and Fundamental Analysis and Investors‘ Sophistication. ”We had a banking system in the past that was exposed to the capital market but without guidelines and regulatory system on lending margin. In the stock market, what people think about is how it will go up. But this market, this casino, is what those entrusted with depositors‘ money gamble with. ”A stock market is a very funny casino. Don‘t entrust your money with gamblers. CBN rules and regulations around the banks cannot be compromised. We are not just doing the sanctioning, we are combing the banks for excellence. The banks must stop creating the impression that they have values when in the actual sense they are dying.” To salvage the situation, Sanusi advocated for a Bank Use Act, to overcome what he described as ”Insurance Business and Fixed Income Bubble,” adding that the current and saving accounts of depositors would no longer be allowed for use in executing private businesses. ”The CBN will no longer allow the use of current and saving accounts of depositors by banks to service insurance businesses, construction of roads and bridges by governors, senators and other political office holders, and the days of Intercontinental Bank‘s 30 per cent ownership by an individual, Oceanic Bank‘s 40 per cent ownership by a family and Afribank‘s 12 per cent by an individual, aside all other bad loans, are gone.” The Convener of the forum, Prof. Sylvester Monye, said the centre was a charitable organisation with specific focus on the promotion of the development of knowledge as a key source of empowerment for the youth and less privileged members of the society. According to him, the centre was designed to provide cutting edge platform for modern and efficient information technology. ”It (the centre) will be equipped with a reference library, e-library, an ICT Centre and a multi-purpose conference centre. We are planning to create an enduring institution that will support and propagate the development of knowledge and the empowerment of our youths,” Monye added. Governors Uduaghan and Obi, in their separate remarks, advised banks to give out loans to small scale industries and farmers and address the challenges Nigerians were facing in attracting foreign investments into the country. http://punchng.com/Articl.aspx?theartic=Art20100710262423 |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 2:02am On Jul 10, 2010 |
Ok. Always, Just when I think I should cut this Sanusi guy some slack. . . he strikes again. Is this guy serious  Why on earth would a CBN Governor speak like this?? Sanusi probably drinks Absinthe from the same cup with Ahmedinejad. He must've been high to speak like this."Nigerian banks are gambling centers and the stock market is a Casino"? ? ? ? ? Isn't Sanusi just gruesome??. This happens only in Nigeria. People have their savings holed up in the markets and all the guy does is take a microphone and use his orifice to wipe out their hard earned investments. Does he understand the consequences of these kinds of statements?? I thought he was the CBN Governor for crying out loud. Looks like he is unrelenting in his desire to totally crumble our economy. Sanusi should be sacked after this ooh, if not I would have to conclude that Jonathan is a Liverless, Bowlerhat wearing, , lucky-to-be-in-Aso-rock, no-good fella whose Job would soon be threatened by his best friend Ribadu.  |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 3:35am On Jul 10, 2010 |
^^^^ Easy, easy, easy Papabrowne  What other way can Sanusi show that he hates modern capitalist system? Nigeria stock market = casinos  |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 4:46am On Jul 10, 2010 |
naijaking1: Don't mind Sanusi. The article was almost pissing me off. I've modified my post. Sanusi is definitely anti-capitalist. I agree that capitalism and all the financial instruments that come with it including the stock market have gambling like elements, however, it is not for the CBN Governor to start making public statements of this nature. Inadvertently, he has asked the populace to sieze engaging in stock market investments. I don't think that is healthy. The DG of SEC would be mad at him on this one. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 5:21am On Jul 10, 2010 |
PapaBrowne: So much for people who think he's out to route corruption, fight crimes,etc |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by sunshinemi: 8:56am On Jul 10, 2010 |
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| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by hercules07: 12:57pm On Jul 10, 2010 |
@poster I get the impression from the article that he was talking about the state of the banks and stock market in the past and I am basing my comment on his quotes. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by RoadStar: 1:07pm On Jul 10, 2010 |
Sanusi has been deemed well vested in micro/macro economics to head the nations apex bank. We should quit complaining. Were are his employers ? What is the opinion of the finance minister. What is the opinion of his CBN board members ? This is not Sanusis policies/ ideology. This is Yar'adua/ GJ's policies. Compare to OBJ who wanted to make Nigeria a market oriented economy, YD/GJ have veered towards a more socialist economy. We will continue to see attacks and limits being paced on banks and the stock market. The banks are going to be comatose in the near future. Banks will become deposit houses who give only short term collateralised loans who will only make profits from these lower loan levels. We will continue to see a winding down in these banks as major investors pull out their funding. Other financial areas which were to see a take of (as planed during the OBJ era) like insurance, mortgaging, investments and pensions etc will be taken down. With banks no more an attractive venture, I predict further consolidation/ mergers till we go bank to 5 - 10 banks like in the 80's. They will depend on government deposits and loans for profits. All major players in the stock market are going to be international banking institutions. We will then see increased capital flight as experienced in SA and Kenya. Take a long hard look at Unity Banks and First Bank and you will get the picture of what banks are going to be . |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 2:32pm On Jul 10, 2010 |
^^^^^ The scenario is scary. That would signal the end of entrepreneurship in Nigeria. Really we should quit complaining. I have noticed that a large chunk of Nigerians are by default, socialists. Maybe his policies appeal to them in that light. Sad thing is while all these happen, Ghana,SA and Angola will keep positioning themselves to reap whatever benefits that would accrue from our failures. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 2:58pm On Jul 10, 2010 |
If you have an extra $1000 you'll like to invest in Africa, which country is least likely to attract your hard earned money: A. South Africa B. Ghana C. Nigeria D. Angola E. Kenya |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by Jarus(m): 3:14pm On Jul 10, 2010 |
| When I picked Punch this morning and saw this screaming headline, the first thing that came to my mind was NL, and the first person that came to my mind was naijaking. Anyway, SLS has said these in the past. Personally thought he needed not harp on it again at this time. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 3:20pm On Jul 10, 2010 |
naijaking1: Interestingly, Nigeria would be the most attractive and yet the least likely to recieve your hard earned money. The attractiveness would come from the potential existent in the market, however, your ultimate decision would fall on security and that's where Nigeria loses. These kinds of statements from Sanusi are only bound to kill any confidence in both the markets and the banks despite the market potentials. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by Ijeleigbo(m): 3:22pm On Jul 10, 2010 |
naijaking1:I bet my answer is kenya. Urghhhh ! I guess their economy out of these five has the lowest GDP. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by paddylo1(m): 3:49pm On Jul 10, 2010 |
Interestingly, Nigeria would be the most attractive and yet the least likely to recieve your hard earned money. The attractiveness would come from the potential existent in the market, however, your ultimate decision would fall on security and that's where Nigeria loses. These kinds of statements from Sanusi are only bound to kill any confidence in both the markets and the banks despite the market potentials. If what u preach is true. . how come Nigeria leads all those countries in FDI(Foriegn Direct Investment)for the past 5yrs? As for Sanusi. . i believe he just says what gullible Nigerians want to hear When he is talking to bloomberg or CNBC his tone changes see video below http://www.youtube.com/watch?v=wLuix4W4WhI |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by paddylo1(m): 3:55pm On Jul 10, 2010 |
I bet my answer is kenya. Urghhhh ! I guess their economy out of these five has the lowest GDP. Ghana has the lowest GDP of the 5 countries. . . and the lowest GDP/capita as well However all 5 countries are some of the better run economies in SSA,so they all will attract capital depending on their ability to absorb it |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by paddylo1(m): 4:03pm On Jul 10, 2010 |
This is Yar'adua/ GJ's policies. [b]I dont buy what u are saying. . . GJ and Sanusi have all canvassed for Power sector derregulation and removal of subsidy in the Downstream sector of oil/Gas Now those are straight up Capitalist policies. . What Sanusi believes in.is some form of Glass-steagal for Nigerian banks I completely disagree with him though. . .but i believe that even if he succeeds in pushing through the ring fencing of shareholder funds That it wont affect the banks too much All the big banks need to do,is to float bonds(Domestic/International),and use the proceeds to finance Capital market and other non core banking operations That way depositors funds are safe Then there is also the issue of Private equity and other Financial services firms like Ren Cap that will keep our markets active. . .and add new innovations Another thing Govt should look at is mandating the listing of 50% of Telecoms firms like MTN,GLO,BHARTI and ETISALAT as well as the listing of minimum of 50% of all 5 major oil JV on the Nigerian stock exchange This will help deepen the market,and help better track economic activity That way the bank shares will not be the main sector driving the market and once PHCN is privatized,list them too. . . [/b] |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 5:49pm On Jul 10, 2010 |
Jarus: Thanx bro, I take it as love Which country would you pick on the list though? |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by texazzpete(m): 6:28pm On Jul 10, 2010 |
Sanusi's beginning to talk too much. Dude sounds a bit strident on the issue these days. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 7:59pm On Jul 10, 2010 |
texazzpete: And for the first time everrrr. . . . .Texazzpette has summoned enough courage to critisize Sanusi! !! Seriously though, if he must remain on that seat, he has stop making these kinds of statements. Sanusi talks too much and that tells a lot about his character. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 8:11pm On Jul 10, 2010 |
PapaBrowne: It takes a real man to admit mistakes, I congratulate Texazzpette on his honesty. I'm begininng to sympathize with Sanusi too, because it's become obvious he can't even help himself, especially when standing before a microphone. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 8:31pm On Jul 10, 2010 |
naijaking1:Same here. Sometimes I feel sorry for him . . . . . . the guy is really confused and probably has more than tonne load of problems of which he has no clue how to fix. But then, he created the mess. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by 4Play(m): 8:43pm On Jul 10, 2010 |
The tone of Sanusi's comments can be justified if he's merely a public commentator but he's a Central Bank Gov. He has a bit of verbal diarrhoea. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by Jarus(m): 9:38pm On Jul 10, 2010 |
4 Play:Agree. I expect him to have shed his past public affairs commentator aura now that he's CBN guv. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 9:54pm On Jul 10, 2010 |
Jarus:Well said, when do we expect an article from you to that effect in Illorin? |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by Jarus(m): 10:09pm On Jul 10, 2010 |
naijaking1:will try and see if can pen something for the dailies and NVS. But not so moivated, cos the that comment(SLS as Public Affairs Commentator Vs SLS as CBN Guv) originated from someone else(Texazzpete). I only seconded. I'm not usually motivated to write articles that can puts question mark on originality. Also demotivating is teh fact that Dr Jideofor Adibes article, sometime last year, titled 'Sanusi: A radical in a conservative Job', published in some dailies and NVS has addressed this. http://www.nigeriavillagesquare.com/articles/jideofor-adibe/sanusi-a-radical-in-a-conservative-job.html |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 11:09pm On Jul 10, 2010 |
Ijele-igbo: Thanks to everyone for considering this question. Now think about it on a macro-level. If Boeign, GM or Toyota, Walmart, or Coca-cola want to invest $1billion in an African market, which of the following will be their best option? A. South Africa B. Ghana C. Nigeria D. Kenya E. Angola |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by paddylo1(m): 11:15pm On Jul 10, 2010 |
Thanks to everyone for considering this question. Now think about it on a macro-level. If Boeign, GM or Toyota, Walmart, or Coca-cola want to invest $1billion in an African market, which of the following will be their best option? It depends on the company. . . . Nigeria will easily attract Walmart or Coca Cola. . cause of our large population and the goods they make is mostly for the service industry South Africa will attract companys like GM or Toyota,because they have a good Infrastructure for Manufacturing Industries However Nigeria has some inherent strengths such as cheap labor,which will eventually start attracting auto manufacturers from Asia Especially to places like Lagos. . Kenya is also a good option for service industries to set up |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by naijaking1: 11:44pm On Jul 10, 2010 |
^^^ Your answers are correct in theory, but in practice I believe no company, just like many individuals want to sink their investment into an atmosphere of uncertainty, loss of confidence, and arbitrary policy decisions that change as goverments change every 4-5 years. After 5 years, investors ought to reasonably begin to expect returns, unfortunately that's when people like Sanusi come out of nowhere or somewhere to alienate investors who expect returns. Our tract record as an un-stable market economy remains our greatest obstacle for attracting reasonable(I didn't say Coca-cola is not in Nigeria) investments. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by paddylo1(m): 12:18am On Jul 11, 2010 |
^^^ I have asked u before. .If that is the case. .why does Nigeria still attract the largest FDI in Africa Larger than all those countries on your list? You have Lekki free trade zone in Lagos with a chinese consortium. . u have NNPC signing Refinery agreements worth $8billion last week with more to come U have Bharti planning to bring in $600million and so on. . . Sanusi has the Minister of Finance who is a Goldman Sachs alums to check his excesses. . THe AMCON bill should begin to bring an end to this Bank saga and even some Foreign Banks are jostling to Bring in expertise and FDI to purchase some of the banks see bloomberg link. . . .below |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by paddylo1(m): 12:20am On Jul 11, 2010 |
[size=14pt]Nigeria’s Biggest Bank Joins Battle to Buy Bailed-Out Lenders[/size] July 9 (Bloomberg) -- First Bank of Nigeria Plc, the country’s largest lender by market value, wants to buy at least one of the banks bailed out by the West African nation last year, Chairman Oba Otudeko said. “We are pursuing one or two of those on offer,” Otudeko said in an interview in Johannesburg yesterday. A secondary listing in London or Johannesburg for the Lagos-based bank “is on the table,” he said. Nigeria’s central bank is selling stakes in the 10 banks it rescued last year, when it fired top managers and injected 620 billion naira ($4.1 billion) of capital to ease a debt crisis that threatened to cripple the financial system. The market potential of Africa’s most populous nation, with 150 million people, is also attracting interest from overseas. [size=14pt]Standard Bank Group Ltd., FirstRand Ltd., and Old Mutual Plc, three of the largest financial institutions in South Africa, said in January they may be interested in buying stakes in Nigerian lenders. Nigeria’s Fidelty Bank Plc and Ecobank Nigeria Plc yesterday said they wanted to buy Afribank Plc. Central Bank Governor Lamido Sanusi last month said he expects three international lenders, a number of private-equity firms and local lenders to submit offers by mid-July. The interested parties are undertaking “detailed” due diligence,[/size] he said. The central bank said last October that local banks can only buy a 20 percent stake in rescued lenders. “Our decision will be based on working with the government and also protecting the best interests of our shareholders,” Otudeko said. “If we acquire, we would acquire at value.” [size=13pt]Overseas Listing[/size] While a listing in London or Johannesburg is being considered, Otudeko declined to specify a timeframe. “What we must not do is chew too much at one time,” he said. “We have enough for now.” First Bank has gained 1.1 percent in Lagos trading this year, bringing its market value to 412.1 billion naira ($2.74 billion). [size=14pt]Nigeria may overtake South Africa to become the continent’s biggest economy in little over a decade, Standard Chartered Plc said last month. Investors have swarmed to Nigeria, drawn by oil and gas reserves, the development of mobile phone networks and the country’s untapped banking market.[/size] First Bank will expand its loan book in step with economic recovery, Otudeko said, after Nigeria’s 24 lenders accumulated toxic assets of as much as $10 billion. “I’m sure we’ll not compromise on our conservatism and prudential lending,” he said. “It would be natural for us to want to grow, but we will be much more careful.” Nigeria’s rescued lenders are Afribank Nigeria Plc, Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc, Union Bank Nigeria Plc, Bank PHB Plc, Spring Bank Plc, Equatorial Trust Bank Plc, Wema Bank Plc and Unity Bank Plc. http://noir.bloomberg.com/apps/news?pid=20601116&sid=ae4eevxMciFg |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 12:34am On Jul 11, 2010 |
naijaking1: Obviously for Boeing, GM and Toyota, that would definitely be South Africa. For Walmart, hmmm, I think South Africa would take it also. Reason being that Nigeria doesn't have a well developed supermarket/retail culture yet. Plus we would have too many problems with supply chain logistics. To buttress this point, Shoprite has 1,422 outlets across Africa and yet just two in Nigeria. Walmart would be more Comfortable in SA. Coca cola on the other hand would happily go with the Nigerian Market but might get tempted with the option of siting production in Ghana and supplying the Nigerian market from there. |
| Re: Sanusi Hits Banks Again: Calls Them 'Gambling Centers' by PapaBrowne(m): 12:45am On Jul 11, 2010 |
paddy_lo: I don't think any foreign bank would want to risk the option of buying any of the Nigerian banks even if the AMCON bill passes and those bad debts are wiped off the books. First, the fear that shareholders would use litigation to scuttle any purchase is enough disincentive. Secondly, and as Naijaking remarked, policy flip flops like the one Sanusi did would definitely discourage investors. If Jonathan decides he is fed up with Sanusi's attitudes and kicks him out, the new CBN would come out with new reforms that might impact negatively on their investmenst even before they start making returns. If any investment group decides to buy any of these banks despite all the disincentives, then it is very likely that they are acting as a front for a parochially motivated group and it would then become obvious that such a decision was taken before Sanusi's August action. |
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