blank:

U guys don't seem to understand. The bridge bank is a 3 yr project at the end of which they either get a buyer or they liquidate the bank. U guys are still talking of All States etc that were taken over by other banks and not govt. When a government nationalises anything, have you ever heard of them paying shareholders? Please, read up on Economics or just google "what does nationalisation mean". This is a form of nationalization called expropriation.

No hope.

blink182:

I don die

blank:

You again?  

obiflex:

as a lawyer i think what the govt has done is wrong and without any basis in nigerian law.
Yes the cbn has power to revoke banking licences but the company that previously owned the licence does not cease to exist until it is liquidated.

Now, the assets of bank phb still belong to the company. The govt cannot assume ownership of those assets just like that. The NASS MUST PASS A  LAW EMPOWERING govt to nationalise the assets of the company. In the absence of this the govt must buy up the companies b4 taking ownership. I expect the shareholders to go to court and i foresee a verdict similar to that of savannah bank. This case is also similar to the Sanusi bailout mess in which the cbn gave out a whopping #600billion without appropriation. It was illegal but he escaped because this is nigeria. In any law abiding nation he should be in jail. Only in nigeria do ppl run a nation without lawshould be in jail. Only in nigeria do ppl run a nation without laws

Page-up:

wao, na so my shares just went

@justice klas . . .my lord, I appeal in supreme coourt . . .let them tamper temper justice wit mercy

klas:

Verdict according to Justice klas

Lawyer, the N3 were acquired by ndic on friday for which ndic paid one naira each. This is covered by the ndic act
It then set up the bridge banks the same day and sold them off to amcon on saturday
amcon paid N679b on sunday by bonds thus amcon became their shareholders.
Effective saturday, those new banks are no longer bridge banks but full fledged banks.
Bridge banks arrangement lasted for less than 24 hours.

Amcon as the full fledged owner has the right to determine if and when it wants to sell to other investors to exit the holdings




Ok klas,

when i made the comments i had not heard of the sale for 1Naira. lol @ the way ur assuming the poition of a judge. i wouldn,t rush to judgement on such issues because we don,t know the entire facts. i suggest you don,t conclude as well. if the shareholders brief their lawyer with the complete facts am sure he would be able to come up with a good remedy as i believe there are many loose ends in this matter. NDIC Act empowers the commission to liquidate and settle all libities not to sell the banks at N1. in any sale there must be independent valution. the shareholders will likely fight for and get justice. remember this is not a govt company that can be sold for a pittance. people built those banks!

Cooooooourt!!!!!!

info.fta:

Take heart, at least shareholders are entitled to company's properties like computers, Aircondition, generators, tables and chairs etc. Sell them to recover your money. Gamble well next time. Lol.

info.fta:

Take heart, at least shareholders are entitled to company's properties like computers, Aircondition, generators, tables and chairs etc. Sell them to recover your money. Gamble well next time. Lol.

omaojo1:

NO without fear of contradiction

The N3's assets and even the other r8's assets were not enough to match their liabilities hence the negetive reserves.

blink182:

How were they able to run their business into the rocks like that, Please I'll appreciate an explanation

omaojo1:

It was the cbn,s first audit (under sanusi) that exposed the grave rots in these banks.

How did they get there:

-they played in the stock market with depositors money. This is their main source of woe. The capital market b4 early 2008 was a money spinning venture and they veered into buying and selling of shares. The shares they bought lost value in the wake of the market turmoil that buffeted the nign cap mkt. you can imagine an access bank shares selling for like 25 naira and later dropping to say 10 naira (figures not confirmed). Those that were not badly affected were those that sold their invs b4 share prices went south.

-Another related reason is the loss they suffered thru margin loans. They gave loans to stockbrocking firms that also suffered the same fate xplained above and were unable to repay back. AMCON's due deligence revealed that the margin loan portfolio was over 4 trillion naira. imagine what a 75% provision will do to the P&l statement of the 24 banks. You remember peter ololo of camry securities that owed 120 bil naira to like 5 of the rescued banks?

-Financial engineering on the part of mgt and aided by their auditors

-engaging in risky oil biz finance that the profits go to mgt and losses, the biz.

-reckless granting of loans to personal bizs and non existent ones. In some cases, u will not even see the file. A 3 bil loan that goes bad = > 3 bil naira loss on the p$l. this is because of the accrued interest.

The whole thing can be summarised thus: 'reckless credit admin and bad corporate governance.

blink182:

Wow, this is great financial insight. Please tell me more of Mr. Peter, never heard of him