ekt_bear:

why the fvk did this get moved to the business/money section? Wtf is wrong with these mods?

I don't know why Seun moved it here but I am getting tired of the despotic manner in which threads are moved. There has to be a basic understanding of a subject. We are not discussing the business abgle of the CBN; what we are discussing are the economic impacts of the CBN and the political undertones in the appointment of the CBN Governor.

Replacement of corrupt Bank CEOs in the Banking Reform Exercise of 2009
In August 2009 Sanusi bailed out Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank with 400 billion naira of public money, and dismissed their chief executives. 16 senior bank officials face charges that included fraud, lending to fake companies, giving loans to companies they had a personal interest in and conspiring with stockbrokers to boost share prices. CBN has power under Section 35 of the Banks and Other Financial Institutions Act to regulate Banking in Nigeria.

There is no question that SLS did the right thing in removing the corrupt and kleptomatic CEOs but did he do it in the best? Any competent observer observer of money markets will tell you that Markets thrive on confidence. SLS in his bid to either boost his profile, didn't take the Banking industry, the economy, the livelihood of many bank workers into consideration before he acted like a butcher in an abbatoir instead of acting like a neurosurgeon performing a brain surgery. What were the effects of Sanusi's Banking Reform in 2009? Also, Sanusi was confirmed by the Senate in June 2009 and by August 2009, he had bailed out 5 banks. How was he able to review, identify, and implement such a move in less than two months? Did he have an agenda or did those that appointed him, have agendas?

ekt_bear:

why the fvk did this get moved to the business/money section? Wtf is wrong with these mods?

So very predictable! Jarus would maintain his congratulatory messages to SLS on the political section, but move all critics to another section

I'd like to believe that many of the posters on this thread are not daft enough to believe that CBN is governed in an autocratic manner. I hope you are not intellectually lazy enough that you have no idea who the decision makers in the CBN are, their qualifications, or their publications. You Nigerians are usually charmed by titles and bragging rights, Dr, this, Engr. that, Quantity Surveyor this, Alhaji Pastor Professor that, e.t.c Publications are good but do not make one, an effective banker.

You people should save your Sanusi witch hunt, because some of your intellectual superiors have already answered the questions you are raising. I know you people can google but you refused to do an honest examination but prefer to crucify Sanusi here. It suffices to say that Mallam Lamido Aminu Sanusi was named as the Central Bank Governor of 2010 for both the African continent and the entire world, by the prestigious Banker Magazine. Publication or not! If you are not too lazy, google other international awards he has aquired in his short time in office.

I am suspicious of the motive of the author of this thread, a Nler who is definitely not intellectually lazy.

Katsumoto:

I don't know why Seun moved it here but I am getting tired of the despotic manner in which threads are moved. There has to be a basic understanding of a subject. We are not discussing the business abgle of the CBN; what we are discussing are the economic impacts of the CBN and the political undertones in the appointment of the CBN Governor.

What is wrong with you people? Are you admitting that you started this thread for political purposes? This topic belongs in the Business/Money section, period! The thread is even on the front page - what else do you want?  I knew you were not interested in discussing Sanusi from the business/money standpoint, but your aim was to attempt to crusify him. You claim you are discussing the economic impact of the CBN - pray tell, is that closer to business/money than politics? abi you sef don join olodos ni? 

[size=18pt]SANUSI IS AN UNDERCOVER [/size] [size=28pt]TERRORIST[/size]

Katsumoto:

Also, Sanusi was confirmed by the Senate in June 2009 and by August 2009, he had bailed out 5 banks. How was he able to review, identify, and implement such a move in less than two months?

An excellent question. Btw, you imply that two months is too short a period of time. Can you offer some examples elsewhere in the world so we can get a sense of what this process looks like?

ndu_chucks:

What is wrong with you people? Are you admitting that you started this thread for political purposes? This topic belongs in the Business/Money section, period! The thread is even on the front page - what else do you want?  I knew you were not interested in discussing Sanusi from the business/money standpoint, but your aim was to attempt to crusify him. You claim you are discussing the economic impact of the CBN - pray tell, is that closer to business/money than politics? abi you sef don join olodos ni? 

Stop personalising this issue; just tell us why you think Sanusi is qualified for the role. What are your views on his very obvious lack of grounding in macroeconomic theory and policy? Stop jumping to his defense because he is Hausa Fulani like you. Why should Nigerians care about his award from an International magazine? Let us look at the effects of his actions and policies as well as the rationale behind it.

SLS would, for a long time, remain controversial.

I think we should focus on his achievements thus far, as well as future plans. Let's dissect these, as opposed to
dwelling on his academic/professional past. At the very least, he'd be in office for another 2-3 years.

Inflation, Real Sector Lending, exchange rates et al, are the macro issues we should focus on for this thread.
Have these issues improved since he took over? These are very complex issues.
Even Bernanke, a leading scholar on the Great Depression, doesn't appear to be solving the US problem.
US job gains have been dismal, which brings up another point-- how do we even assess SLS when we don't have
up-to-date data?

Let us disregard all those local and international awards, we know former CEOs who got all those, and are now convicted.

BTW, what's all this noise I'm hearing about the CBN setting up an hotel, power plant and chicken farm

Laajman:

SLS would, for a long time, remain controversial.

I think we should focus on his achievements thus far, as well as future plans. Let's dissect these, as opposed to
dwelling on his academic/professional past. At the very least, he'd be in office for another 2-3 years.

Inflation, Real Sector Lending, exchange rates et al, are the macro issues we should focus on for this thread.
Have these issues improved since he took over? These are very complex issues.
Even Bernanke, a leading scholar on the Great Depression, doesn't appear to be solving the US problem.
US job gains have been dismal, which brings up another point-- how do we even assess SLS when we don't have
up-to-date data?

BTW, what's all this noise I'm hearing about the CBN setting up an hotel, power plant and chicken farm

Thanks, we are going to get through all the points you made.

Hotel is supposedly part of the CBNs capital expenditure budget.

Power was something Sanusi suggested the CBN could help out on.

Chicken farm was a parody some newsman did.

He is also interested in acquiring the abuja commodities board, according to a recent newspaper report.

All in all, I'm not sure he knows the role of a central bank. Hotels, power plants, commodities board are not under his jurisdiction.

@ kakumoto
6. Executive Director Risk and Management Control, First Bank

all i must say is that sanusi needs series of training on crises management.

ndu_chucks:

I'd like to believe that many of the posters on this thread are not daft enough to believe that CBN is governed in an autocratic manner. I hope you are not intellectually lazy enough that you have no idea who the decision makers in the CBN are, their qualifications, or their publications. You Nigerians are usually charmed by titles and bragging rights, Dr, this, Engr. that, Quantity Surveyor this, Alhaji Pastor Professor that, e.t.c Publications are good but do not make one, an effective banker.

You people should save your Sanusi witch hunt, because some of your intellectual superiors have already answered the questions you are raising. I know you people can google but you refused to do an honest examination but prefer to crucify Sanusi here. It suffices to say that Mallam Lamido Aminu Sanusi was named as the Central Bank Governor of 2010 for both the African continent and the entire world, by the prestigious Banker Magazine. Publication or not! If you are not too lazy, google other international awards he has aquired in his short time in office.

I am suspicious of the motive of the author of this thread, a Nler who is definitely not intellectually lazy.

My brother, here we go again. Does discussing SLS shortcomings constitute intellectual laziness? I don't think so.
International awards don't equate concrete success on the ground. Many of these awards are sometimes given just for participation, showing up, and dressing "funny" Awards mean nothing if the results on the ground are in the negative terriotary.

Note, if the unemployement improved, nobody would have doubted SLS qualifications, if the banks are healthy, we would all sing kumbayaaaaaah
If the economy is stable, inching along, or even potentially better, we would all hail SLS the 'banking wizard'.
No, none of the above, and you want us to come look at his award certificate from from some organizations You tell me who then is intellectually lazy.

The economy is getting worse, people have less confidence in banks and banking products, policies are made at whims and changed the next day---for no reason. All because, SLS is NOT qualified for the office he presently occupies.

Remember the directive about ATM locations? On coming into office, SLS decreed that "fortwith, no bank is allowed to have ATM outside their premises" A year later, it became obvious that the stupid policy led to overcrowding of the bank premises. And what does the "smart" CBN governor do? He simply issues another directive saying that "fortwith, banks should have ATMs outside their premises"

It may sound funny to an outsider, but consider what inconvience and loss of money, and the punishment bank customers take, just because SLS has no ability to predict the consequences of his own official policies.

lol,


He is simply mediocre fellow, I'm no expert but at least my experience does tell me this man is really confused and sure doesn't understand his job. I'm sure even with my lil experience and good advisers, I can do a better job than he's doing.

ekt_bear:

Hotel is supposedly part of the CBNs capital expenditure budget.

Power was something Sanusi suggested the CBN could help out on.

Chicken farm was a parody some newsman did.

He is also interested in acquiring the abuja commodities board, according to a recent newspaper report.

All in all, I'm not sure he knows the role of a central bank. Hotels, power plants, commodities board are not under his jurisdiction.

Hotel? Part of the CBN's expenditure? I laugh in Swahili

Power? That sure isn't his business so he should stay out of it

Chicken farm? That was the funniest of them all; hat got me cracking up

Then commodities? That was the cap of it all; shows SLS is really clueless

@ekt_bear, for your information the CBN decree states that: "There shall be for the Bank, a Board of Directors (hereafter in this Decree referred to as "the Board" which shall be responsible for the policy and general administration of the affairs and business of the Bank".  If CBN takes any action, is is due to the collective action of the Board and not just Sanusi.

Katsumoto:

Stop personalising this issue; just tell us why you think Sanusi is qualified for the role. What are your views on his very obvious lack of grounding in macroeconomic theory and policy? Stop jumping to his defense because he is Hausa Fulani like you. Why should Nigerians care about his award from an International magazine? Let us look at the effects of his actions and policies as well as the rationale behind it.

You started the thread by claiming that your objective is to educate yourself, I quote you verbatim: "I have decided to start this thread with the objective of educating myself on SLS". You now claim as shown in the bolded text above that Sanusi obviously lacks grounding in macroeconomic theory! Haba!

You should have started the thread by declaring that Sanusi is a terrorist and presented that idea for discussion. We are not fools here.

ekt_bear:

Hotel is supposedly part of the CBNs capital expenditure budget. (Completely sponsoring the Hajj missions would soon fall under the CBN oversight)

Power was something Sanusi suggested the CBN could help out on. (He should also help out with local road maitaince, and upgrade. How about oil exploration and coal mining in the north)

Chicken(Pig) farm was a parody some newsman did.

He is also interested in acquiring the abuja commodities board( and the Sweet Mama Brothels, Inc), according to a recent newspaper report.

All in all, I'm not sure he knows the role of a central bank. Hotels, power plants, commodities board are not under his jurisdiction.

All this boarders on his understanding, education, and intelligence.

ndu_chucks:

@ekt_bear, for your information the CBN decree states that: "There shall be for the Bank, a Board of Directors (hereafter in this Decree referred to as "the Board" which shall be responsible for the policy and general administration of the affairs and business of the Bank". If CBN takes any action, is is due to the collective action of the Board and not just Sanusi.

You started the thread by claiming that your objective is to educate yourself, I quote you verbatim: "I have decided to start this thread with the objective of educating myself on SLS". You now claim as shown in the bolded text above that Sanusi obviously lacks grounding in macroeconomic theory! Haba!

You should have started the thread by declaring that Sanusi is a terrorist and presented that idea for discussion. We are not fools here.

You should be pulling out referrences to SLS advanced degrees, academic publications, and theories on macroeconomics, not attack anybody who questions SLS.

ndu_chucks:

You started the thread by claiming that your objective is to educate yourself, I quote you verbatim: "I have decided to start this thread with the objective of educating myself on SLS". You now claim as shown in the bolded text above that Sanusi obviously lacks grounding in macroeconomic theory! Haba!

Why do you claim he has a solid background in macro? The undergrad and possibly masters level courses he took in the 80s you think is enough?

macjive01:

[size=18pt]SANUSI IS AN UNDERCOVER [/size] [size=28pt]TERRORIST[/size]

I agree 100%
Can someone open a thread on this topic
The more internet information generated on SLS, the better the chances of the State Department placing him on the terror watch-list.

Nigeria , we hail thee. TIME magazine panel ranks our CBN governor ahead of Sarkozy and a host of others in its 100 Most Influential people in the world and Nairalanders start branding him mediocre, terrorist, islamist etc. Since when did Nairaland become FOX News??

FYI - a large chunk of his experience  as the Global Head of Credit Risk Management at UBA for many years has been left out of the profile published on this thread. The man is not perfect, he has weaknesses and makes mistakes- Fact. But anyone who watched the Live Senate hearing, where he single handedly ripped the Senate Committee on Finance apart (using their own numbers from the Budget Office) will agree that SLS is a brilliant man. Before he challenged the system nobody had done the maths to ask how much the lawmakers in Abuja were earning per quarter. He raised it as an issue, defended his position eloquently and GEJ took action by slashing the senate packages (not enough but a start, )

Please as we debate the "functions" of a central bank (from textbooks no doubt), lets not forget the MANDATES of the CBN. The key one being financial system stability. SLS and his Deputy Governors have focused 100% on ensuring this overheated financial system returns to stability. Everyone seems to have forgotten the Magic "money doubling" stock market being fuelled by margin loans from our Banks, which if not checked by CBN would have destroyed this economy in 2009. If that remains the only thing SLS acheives in his 5 years, i think he deserves more of thanks than being branded a terrorist, haba!!

naijaking1:

My brother, here we go again. Does discussing SLS shortcomings constitute intellectual laziness? I don't think so.
International awards don't equate concrete success on the ground. Many of these awards are sometimes given just for participation, showing up, and dressing "funny" Awards mean nothing if the results on the ground are in the negative terriotary.

Note, if the unemployement improved, nobody would have doubted SLS qualifications, if the banks are healthy, we would all sing kumbayaaaaaah
If the economy is stable, inching along, or even potentially better, we would all hail SLS the 'banking wizard'.
No, none of the above, and you want us to come look at his award certificate from from some organizations You tell me who then is intellectually lazy.

The economy is getting worse, people have less confidence in banks and banking products, policies are made at whims and changed the next day---for no reason. All because, SLS is NOT qualified for the office he presently occupies.

Remember the directive about ATM locations? On coming into office, SLS decreed that "fortwith, no bank is allowed to have ATM outside their premises" A year later, it became obvious that the silly policy led to overcrowding of the bank premises. And what does the "smart" CBN governor do? He simply issues another directive saying that "fortwith, banks should have ATMs outside their premises"

It may sound funny to an outsider, but consider what inconvience and loss of money, and the punishment bank customers take, just because SLS has no ability to predict the consequences of his own official policies.

nwannem maramma, You have placed the blame for the dire economic conditions squarely on Sanusi, ko?  May I inform you that if only 40% of the looted funds by your politicians, including the N40billion loan obtained by Bankole to fund bogus salaries, had been invested on infrastructure e.t.c the country would not be in the podsition we now find ourselves. This same sanusi,  exposed and dealt with the bankers who ruined our economy and several lives due to looting shareholder funds and funds belonging to depositors. Your blame is misdirected o.

ekt_bear:

An excellent question. Btw, you imply that two months is too short a period of time. Can you offer some examples elsewhere in the world so we can get a sense of what this process looks like?

There isn't much of similar examples to what Sanusi did but I will still provide some perspective. The main issue for any Bank is liquidity and a bank can go under in one day over liquidity issues (see Lehman Brothers which went under for political reasons). In most cases, a bank will scream for help silently to a Central Bank as a last resort if it is unable to unable funding from other banks. Lehman with assets of £660 billion dollars, had liquidity issues and other banks refused to lend to it. It went to the Federal Bank but the Federal Reserve preferred to let it fail for undisclosed reasons. Most likely political reasons.

We know that the five banks did not go to the CBN for funds. It is true that there were corrupt practices going on in those banks. The housing bubble which bust in 2007 led to a fall in securities in 2008 and while this was noticed in January 2008, bailout did not occur until late 2008 and early 2009. And it was the banks that screamed for help rather than the Central Banks doing a review of the health of financial institutions.

Such financial impropriety goes unnoticed until a bank collapses. So how did Sanusi understand the health of Five banks in under two months? Is he suggesting that he reviewed all banks in two months before identifying the five that required help? Or did he know which five to review? Secondly, was a review of financial institutions the first task of a new Governor?

Did he take the right steps? I disagree completely. Every economist knows that one of the ten principles of economics is that prices rise when government prints too much money. With inflation in double digits, no seasoned economist would have printed money to bail out banks that were not suffering liquidity issues. SLS should simply have given the information implicating bank executives to the police to handle. That would have forced the CEOs to resign without alarming the markets. The banks would re-organise internally and their stocks would not have suffered.

Any of those banks that felt they needed funds for capitalisation should have just applied for loans and Sanusi would have just used an open-market operation called a repurchase agreement to provide a loan by buying assets of the bank and return the assets when the bank repays. Such an action would have had a short run effect on inflation because the money would have returned to the CBN. But by just printing money and using it to shore up bank's reserves, he sent excess funds into an economy that has high inflation without a plan to mop up such excess capital.

naijaking1:

You should be pulling out referrences to SLS advanced degrees, academic publications, and theories on macroeconomics, not attack anybody who questions SLS.

I guess he should, really want to see it.

ekt_bear:

Why do you claim he has a solid background in macro? The undergrad and possibly masters level courses he took in the 80s you think is enough?

There's theory and then there's real life experience and practical examples.  That he did Micro and Macro 101 in the 80's when he did Islamic studies as undergrad doesn't qualify him at all. What did he do again in his master? IMO he lack experience dealing with Macroeconomic factors Price, Inflation, Foreign Exchange, Unemployment et al. There are experts who concentrate on a particular field for instance someone who's good on Labor economics is bound to be an expert on unemployment as opposed to someone who studied Financial Economics, who understands further about banking (lending, inteest rates, inflation and someone who's an expert on International economics and policy knows better about Foreign exchange and Trade, et al. SLS doesn't know jack let alone specialize in any field  

ekt_bear:

Why do you claim he has a solid background in macro? The undergrad and possibly masters level courses he took in the 80s you think is enough?

Why are you attempting to help Katsumoto dig out of the hole he dug jimself into? You don't fool me either - you know the point I was making precisely, jo.

ndu_chucks:

Why are you attempting to help Katsumoto dig out of the hole he dug jimself into? You don't fool me either - you know the point I was making precisely, jo.

What hole did I dig for you? I stated and I stand by it, that a Central Bank governor must be grounded in Macroeconomics. I need you to educate me on Sanusi's macroeconomic credentials. Isnt that the purpose of the thread? If it comes out that my assertions are true, then Sanusi is ill qualified to lead the CBN.

manny4life:


I guess he should, really want to see it.



There's theory and then there's real life experience and practical examples.  That he did Micro and Macro 101 in the 80's when he did Islamic studies as undergrad doesn't qualify him at all. What did he do again in his master? IMO he lack experience dealing with Macroeconomic factors Price, Inflation, Foreign Exchange, Unemployment et al. There are experts who concentrate on a particular field for instance someone who's good on Labor economics is bound to be an expert on unemployment as opposed to someone who studied Financial Economics, who understands further about banking (lending, inteest rates, inflation and someone who's an expert on International economics and policy knows better about Foreign exchange and Trade, et al. SLS doesn't know jack let alone specialize in any field  

To add, a Central Bank governor is an expert on Macroeconomics.

Katsumoto:

What hole did I dig for you? I stated and I stand by it, that a Central Bank governor must be grounded in Macroeconomics. I need you to educate me on Sanusi's macroeconomic credentials. Isnt that the purpose of the thread? If it comes out that my assertions are true, then Sanusi is ill qualified to lead the CBN.

True that, someone with Islamic Studies and then went to Zaria to do his master is not grounded in economics. Not everyone can and will lead a Central Bank, the Central Bank is the CORE of the nations economy, therefore, for him to successfully lead the CBN, he should have excellent background and experience in dealing with macroeconomic factors such as Lending and Interest Rate, controlling Price and Inflation, Labor and Unemployment and a strong back ground in Finance as when the CBN engages in Open Market Transaction such as securities.

Katsumoto. If you are sincere, you'd be more concerned with the expertise of the members of the CBN Board of directors who are charged as follows: "There shall be for the Bank, a Board of Directors (hereafter in this Decree referred to as "the Board" which shall be responsible for the policy and general administration of the affairs and business of the Bank".

Do you find expertise in macroeconomic lacking in this board? Do you even know who the members are and their expertise? This is where you should start if you want to be taken seriously. This witch hunt is not useful.

I remember 2yrs ago when Sanusi came on board with his mafian styled leadership of the CBN, my worries then were that this man was eroding the very lifeline of bank business with his hasty decisiond & as the spirit leads policies he was churning out.
I give it to him, he was fearless, probably good intentioned and realy wanted to help but there were some very obvious pointers to the fact that the young man was darting in unknown waters. From his sweeping actions of sacking the managements of banks he alleged were cooking their books without given them any chance to defend themselves, to reeling out hasty policies and talking down on our banks in different public fora both home and abroad, all these showed he lacked the finesse, tact and temperament of the office he occupies. In his effort to correct the flaws in the financial sector he unwittingly brought down the whole sector to a screeching halt.
Any banker or financial expert that is worth his salt knows that bank business thrives on trust and confidence and the moment anyone in his present capacity starts mouthing off about how dubious and criminally minded bankers and the system are, instantly, people will start fretting and taking their monies elsewhere. That was exactly the case in our scenerio, Sanusi got dazed by the limelight and played too much to the gallery.
Now the news making the rounds is yet another policy twist from our very controversial and extremely erratic CBN governor who has given a deadline to the 8 rescued banks to recapitalize before october 30 or face liquidation.
Now the question that any sane person that has been following this man's trial and error policies are these:
1. Did Sanusi not promise us that no bank will be allowed to fail or go under?
2.What was the essense of the whole hullabaloo about saving the banks initially and stabilizing the economy if it will eventually come to this?
3. Does this man listen to his voice at all? Or does his own voice confuse him as well?
He is so full of discordant tones and inconsistencies. Why make us go through all that suffering, more than 30,000 people have already lost their jobs, 620billion naira injected into these banks and our economy stagnated. Is he confused or what? Or he can't wait to see through his policies to the end? I understand he constituted the managements of these rescued banks, so has he lost confidence in them? Or was it a case of the whole plan being programmed to end like this? Why is he in a hurry to sell these banks to foriegners?
He acts like shareholders of these banks do not have any right as to how the merger and aquisition should go, he wants to damn the shareholders and liquidate their banks like that? Does he even have any shares in any of these banks to understand the import of his thoughtless pronouncements.
Thesame way he eroded confidence in the banking sector when his madness first started, he is going to repeat it again the 2nd time. Imagine the adverse effects liquidating 8 banks will have on even the so-called healthy banks. Which investor with a sane mind will want to touch our banks with a 500m pole with a confused CBN governor and grossly incompetent head like sanusi. It is high time Mr Lamido Sanusi threw in the towel and admit this job is way above his league to start with.
I realy do not see any iota of brillance let alone genius in his way of doing things, he is just dramatic and unfortunately, people like drama, the man lacks the depth and expertise that is befitting of a CBN governor. No doubt, he means well but he just does not have the stuff to move us forward hence his resort to non-issues.
I still dey ask what benefits will islamic banking have on our seriously ailing economy? That $hit will die a natural death in Naija as soon as it kicks off, I am certain of that. They are no competition to any conventional bank.th home and abroad, all these showed he lacked the finesse, tact and temperament of the office he occupies. In his effort to correct the flaws in the financial sector he unwittingly brought down the whole sector to a screeching halt.
Any banker or financial expert that is worth his salt knows that bank business thrives on trust and confidence and the moment anyone in his present capacity starts mouthing off about how dubious and criminally minded bankers and the system are, instantly, people will start fretting and taking their monies elsewhere. That was exactly the case in our scenerio, Sanusi got dazed by the limelight and played too much to the gallery.
Now the news making the rounds is yet another policy twist from our very controversial and extremely erratic CBN governor who has given a deadline to the 8 rescued banks to recapitalize before october 30 or face liquidation.
Now the question that any sane person that has been following this man's trial and error policies are these:
1. Did Sanusi not promise us that no bank will be allowed to fail or go under?
2.What was the essense of the whole hullabaloo about saving the banks initially and stabilizing the economy if it will eventually come to this?
3. Does this man listen to his voice at all? Or does his own voice confuse him as well?
He is so full of discordant tones and inconsistencies. Why make us go through all that suffering, more than 30,000 people have already lost their jobs, 620billion naira injected into these banks and our economy stagnated. Is he confused or what? Or he can't wait to see through his policies to the end? I understand he constituted the managements of these rescued banks, so has he lost confidence in them? Or was it a case of the whole plan being programmed to end like this? Why is he in a hurry to sell these banks to foriegners?
He acts like shareholders of these banks do not have any right as to how the merger and aquisition should go, he wants to damn the shareholders and liquidate their banks like that? Does he even have any shares in any of these banks to understand the import of his thoughtless pronouncements.
Thesame way he eroded confidence in the banking sector when his madness first started, he is going to repeat it again the 2nd time. Imagine the adverse effects liquidating 8 banks will have on even the so-called healthy banks. Which investor with a sane mind will want to touch our banks with a 500m pole with a confused CBN governor and grossly incompetent head like sanusi. It is high time Mr Lamido Sanusi threw in the towel and admit this job is way above his league to start with.
I realy do not see any iota of brillance let alone genius in his way of doing things, he is just dramatic and unfortunately, people like drama, the man lacks the depth and expertise that is befitting of a CBN governor. No doubt, he means well but he just does not have the stuff to move us forward hence his resort to non-issues.
I still dey ask what benefits will islamic banking have on our seriously ailing economy? That $hit will die a natural death in Naija as soon as it kicks off, I am certain of that. They are no competition to any conventional bank.

ndu_chucks:

Katsumoto. If you are sincere, you'd be more concerned with the expertise of the members of the CBN Board of directors who are charged as follows: "There shall be for the Bank, a Board of Directors (hereafter in this Decree referred to as "the Board" which shall be responsible for the policy and general administration of the affairs and business of the Bank".  

Do you find expertise in macroeconomic lacking in this board?  Do you even know who the members are and their expertise? This is where you should start if you want to be taken seriously. This witch hunt is not useful.

Stop deflecting attention from SLS; he is the Governor and the attention falls on him. How many Americans know the members of the board of governors of the federal reserve bank? How many in England know the names of the two deputy governors? Was it not Bernanke that received the flak for the Quantitative Easing 2? Did you witness any criticisms of the other board members?

I find your personal attacks very distateful. Are Northerners aboard criticism? Why can we criticise Soludo, OBJ, Tinubu, etc daily but can not do so of SLS? I don't care to share my background but I will criticise anyone that I feel has acted in such a manner that requires criticism. Please stick to the objective of this thread. I am asking for the umpteenth time, why do you feel that SLS is qualified for the job even when he is seemingly lacking in academic and professional qualifications? How did Nigeria give the top job to a 48 year old with JUST 12 YEARS experience?

'According to him (Sanusi), the management team of the bank would today meet the Senate committee on Banking aimed at answering questions ranging from whether the bank has the right to lend money or answer to charges of improper appropriation of money to the five troubled banks, adding, “we will go and meet them today to tell us whether we need any appropriation to perform our statutory duties”.

Defending the injection of N420billion to save the banks, Sanusi noted that what the apex bank did was not a bailout, but liquidity support and financial intervention to bring them back to a position where they would then be able  to provide their contractual obligations to their customers, adding that much of the money borrowed out by the banks will not come back.'

Bernanke was criticised for QE2 (releasing $600 bn into the US economy) on the basis that it would lead to inflation even though the US inflation rate was 1.8%. Why would a competent economist release 420 billion into an economy with inflation at a rate of 16% (I am sure it is higher than 16%)? How does a CBN governor release money into the money market without planning on how to take it back? An undergraduate economics major WILL fail an exam if he answers in such a manner.

After increasing the money supply, SLS did not even venture to calculate the effect on inflation and price stability. For every increase in the EU, US, and UK, the Governors had to explain what they thought would happen to inflation and how they intended to reign it in and how.

@katsumoto, I'll let you continue with your exercise. You simply seem to have already made up your mind on the questions you raised. That is the root of my objections.

Sanusi for president, 2015!!

@Katsumoto

You will not fully understand sanusi without a full psycho analysis of his persona.

I have been studying sanusi for a long time and over the years i have come to the conclusion that he is an inconsistent and confused person.

He is moulded in the image of a very few liberal northerners like Nasiru Elrufai, Dangiwa Umar and may be the late Bala Usman of ABU Zaria. Comfortable in wearing western suits and confident in the command of the English language. And of course able to go against some norms in the north, like his wife accompanying him to the senate hearing etc.

But by and large he is still gripped by the image of Islamic activism of which he was an active member in the late 80s Whose aim was to establish sharia rule in Nigeria by violent means if necessary. It is this crusading zeal and mindset that he brought to the CBN. His so called fearlessness stems from this and of course his royal arrogance that makes him to regard everybody as a bloody commoner.