Problems With Consolidated Banks: Was Soludo A Failure?

Comparing Soludo to Sanusi is like comparing oranges to apples,
comparing OBJ to Yar'dua,
comparing Ribadu to Farida,
comparing El-Rufia to Aliyu Modibo,
comparing privatisation to nationalization of institutions,
comparing open market to restricted market.

Please, please don't compare

I think you do not judge the present banking problem to soludo.

I hate this politics section, everything is reduced to which tribe are you from, even if Nigeria was made up of people of only one tribe I am sure the shape of the nose, head or even color of skin would be used to divide sheesh!

My concern is for the almost tyrannical style in which Sanusi has acted. If Yar Adua's regime was an action packed one, then just maybe his behaviour would fit in. There are far more cautious ways of achieving goals than acting recklessly. The Naira lost 2% on the first day of his action, let us pray we don't witness massive levels of distrust from investors (local and foreign); lets hope the Naira doesn't lose further value. Right now Sanusi is like a bull in a China shop; CBN needs a calm and steady head.

The writer of this piece is a big fool. what Nigerian dont know is that the north has an agenda and that is what sanusi is expertly executing. when the wool is lifted from our eyes, it would be too late. the fact is none of these banks had any probem that would warrant a take over. oceanic has N217b in capital base. their total risk assest (or loans & advances) is N45b. if they are to make a full provision which has been done, they still have over N150b capital base! Fin bank has N105b capital base and total risk asset of N25b. if they make an unlikely 100% provision for the risk asset, thier capital base is still over N70b! Intercontitental bank has over N300b capital and total risk asset of N70b. You do the match. The north is coming back and that is why these people are being pushed out. Dangote has already been imposed on the stock exhange. these banks will soon change ownership to northerners who will 'repay CBN' with the 'injected funds' (when this happens me & u wont hear it) and be sure the take over will be packaged from d north. last month sanusi launched islamic banking and granted them licence. they will take 20% each in these banks. we are so blind. by the time we put two and two together it will be too late. None of these banks have problems. i work in a company that audits these banks. i was shocked when these lies are spread as truths and soon we discovered why. whenever cbn says banks have problems they know the public will buy it hook, line and sinker! there is something seriously wrong going on and we should be very very very careful and pray for this country

no need to debate long story

breeze go soon blow fowl nyash go open

Nigerians never learn. . . . . . . .

They need to challenge this decision in court.

^Governments pitbulls don arrive.

I won't exactly say Soludo was a failure but HE FAILED!

Soludo was a comforatble lecturer who became Adviser in Aso-Rock and got close to money and the good life. From there he became CBN governor - the regulator of one of the most unprofessional and corrupt sectors of our economy (@ 2004).
He was a man for his time, his first meeting with the CEOs, he told them point blank that some of them will soon cease to be MDs as it was better to be manager of something than MD of nothing. He was bold, took the decision to consolidate and OBJ stuck with him. The successful guys raised the 25B required and with so much money in their hands and no idea in their head, they started to work on corrupting Soludo and the tough guy started to melt.
I won't blame him, there was success for him and acknowledgement of his brilliance but no money and he knew (or must have been reminded by pple like Jim Ovia) that he will cease to CBN governor someday, you better make your money. That was then end of the regulator.

Soludo also loved glamour and probably a bit arrogant and with that he was destined to FAIL!. I  believe he knew of the problems and even the solutions but he must have been too compromised to take the hard decisions. He was the darling of the MDs, they loved him to death and they were willing to pay any price to have him do a second term - they went for cheap blackmail, bribed, coerced but YAR ADUA no gree and the result is what we have today.

I will also excuse Soludo because he had some policies they didn't allow him to carry out - like paying the states allocation in dollars staright to banks.

To play the Devil's advocate also for the banks, until government policies stabilize and there is power supply, the banks cannot do well legitimately. Who can the banks trust with their money when one government policy can mess up any business not to talk of unavailable infrastructure. The only people to trust are the Dangote's, Otedolas and politicians who can control the policies.

The monies lost to bad loans can transform our economy and this should be a learning point for Sanusi, influence government to stick with policies and also build infrastructure. with 1 trillion, we can create a mortgage industry and construction will thrive and there are young men/women with jobs who can be paying back these mortgage monthly. Let's liberalise the power sector. the over 400B lost to margin loans can bring uninterrrupted power supply to the whole nation. The 36 Billion Intercontinental gave to the "oil magnate" can transform Lekki-Epe way or Badagry -Seme border and they will recover their money. There are bankable projects in infrasturcture but govt. policy can destroy it. until we have infrastructure, banks will not give money to SMEs.

Once again Soludo failed for lack of character but this is Nigeria, who cares. I'm sure his Children and wife will be glad with the path he chose. I'm still waiting on him to finish the hospital he said he wants to build in memory of his mother - if the banks didn't give him bad checks. Bye to Soludo - the most glamorous CBN governor (he may become a politician in Anambra). he has the tendencies of a PDP politician. we've come a long way from where Soludo started from and I will credit him for that. it's Sanusi's turn, hopeful he can finish the race and I hope Yar Adua supports him especially with infrastructure.

@ dancewith

at the risk of inviting insult from you, I have to ask what the writer wrote that will make you call him a fool?
I have a foolish idea- get a GRE or GMAT book and answer some analytical questions / critical thinking questions. By the time you can score up to 25%, you should be able to appreciate what this guy has written and probably challenge it in a reasonable way. My fear however is that it will take a very long time.

People like you are the reason why Nigeria is where it is --- everything is turned to sentiments! Even if he takes their bank and gives it Dangote, they brought it on themselves, why did he not sack GTB MD?

Soludo was a comforatble lecturer who became Adviser in Aso-Rock and got close to money and the good life. From there he became CBN governor - the regulator of one of the most unprofessional and corrupt sectors of our economy (@ 2004).
He was a man for his time, his first meeting with the CEOs, he told them point blank that some of them will soon cease to be MDs as it was better to be manager of something than MD of nothing. He was bold, took the decision to consolidate and OBJ stuck with him. The successful guys raised the 25B required and with so much money in their hands and no idea in their head, they started to work on corrupting Soludo and the tough guy started to melt.
I won't blame him, there was success for him and acknowledgement of his brilliance but no money and he knew (or must have been reminded by pple like Jim Ovia) that he will cease to CBN governor someday, you better make your money. That was then end of the regulator.

Soludo also loved glamour and probably a bit arrogant and with that he was destined to FAIL!. I  believe he knew of the problems and even the solutions but he must have been too compromised to take the hard decisions. He was the darling of the MDs, they loved him to death and they were willing to pay any price to have him do a second term - they went for cheap blackmail, bribed, coerced but YAR ADUA no gree and the result is what we have today.

I will also excuse Soludo because he had some policies they didn't allow him to carry out - like paying the states allocation in dollars staright to banks.

To play the Devil's advocate also for the banks, until government policies stabilize and there is power supply, the banks cannot do well legitimately. Who can the banks trust with their money when one government policy can mess up any business not to talk of unavailable infrastructure. The only people to trust are the Dangote's, Otedolas and politicians who can control the policies.

The monies lost to bad loans can transform our economy and this should be a learning point for Sanusi, influence government to stick with policies and also build infrastructure. with 1 trillion, we can create a mortgage industry and construction will thrive and there are young men/women with jobs who can be paying back these mortgage monthly. Let's liberalise the power sector. the over 400B lost to margin loans can bring uninterrrupted power supply to the whole nation. The 36 Billion Intercontinental gave to the "oil magnate" can transform Lekki-Epe way or Badagry -Seme border and they will recover their money. There are bankable projects in infrasturcture but govt. policy can destroy it. until we have infrastructure, banks will not give money to SMEs.

Once again Soludo failed for lack of character but this is Nigeria, who cares. I'm sure his Children and wife will be glad with the path he chose. I'm still waiting on him to finish the hospital he said he wants to build in memory of his mother - if the banks didn't give him bad checks. Bye to Soludo - the most glamorous CBN governor (he may become a politician in Anambra). he has the tendencies of a PDP politician. we've come a long way from where Soludo started from and I will credit him for that. it's Sanusi's turn, hopeful he can finish the race and I hope Yar Adua supports him especially with infrastructure.
 
 
 
You hit the nail on the head, most people think Soludo was born into money not knowing he was from a humble lecturer background and was more than overwehlemd by these bank bosses who have been in position for decades, to start lecturing these money men on how things should be done is like a small child lecturing an adult about the realities of life.

knowall i like people like who come out and call a spade a spade. i like your post. ask your critics why cbn open the expanded discount window(edw) during the last six months of soludos tenure simply so that the banks will not fell in his presence.

  

@ poster KNOWALL,

Out of your foolish attempt to ridicule  the best perfomer this useless country have ever had, you ended up displaying your illiteracy, stupidity , tribalism,prejudice, frustration in london and your desperate desire to gain online attention,

First, let me start by correcting your lack of knowledge of Nigerian affair, Soludo spent only 5 years of a single tenure as CBN governor against your malicious accusation of 8 years, He was truely a lecturer and also ,an international and united nations consultant on economics and banking,and then chief economic adviser to president Obasanjo, and finaly appointed CBN governor by Obasanjo, he (Soludo) along side Okonjo Iweala are the most famous, educated, intelligent and globaly sort after economist the whole Africa has ever produced since the history of life, Soludo made first class in his First, second and third degrees, he was a self made scholar, he became a profesor at the age of 40, a record no other nigerian have ever made.
When he came in as CBN governor, he inherited a banking institution that was half dead, he revied it by consolidated our banking institution and gave us a global banking standard, without consolidating nigerian banks, this global economic crisis could have damaged Nigeria beyond repair, You talked of sanusi fishing out four CEOs, do you know how many banks that closed and how many that emerged with other banks as a result of Soludo's consolidation policy ? Soludo and Sanusi are not in any way comparable, Soludo is by far ,  greater than sanusi, Soludos CV before he became CBN governor is by far more impresive and loudable than that of sanusi before and now he is CBN governor, I bet you , in two tenures, Sanusi can not achieve for Nigerians what Soludo achieved in a single tenure. Soludo is the best performed public servant  Nigeria have ever had all through her existence. (this is jus a little about Soludo).

And finaly, i would like to warn you, this should be your first and last time you would log on to nairaland to bore people with your half informed post, as an adult and a person who claims he is in UK,you should be more reasonable and informed and  know that if you want to make a post against a person, you should do more research and come up with some thing more reasonable, than waking up one sunday morning to display your illiteracy.

Where did you stop in school ?

Mr KnowAll, you goofed in the point that Soludo may have failed because he was an Economist and not a Banker. Soludo has not failed. Policy is a continuum

In the first place, Central Banks/Federal Reserve/Bank of England governors all over the world are not mostly economist. And more noteworthy, they are principally PHD Economist because the economy is not just about banks but more about complex macro-economy.  Carry out a research on countries such as USA, England, Japan and other countries. The present US FED Chairman is a Professor of Economics.

In these countries, Sanusi will not  near CBN mantle of leadership becomes he lack the academic and professional pedigree.

Sanusi and Soludo will surely have different management style. Sanusi may decide to sack an entire board because they over-leveraged their portfolio while Soludo may decide to prop them up to a degree. It's all about management policy exclusive to CBN head based on his interpretation of macroeconomic variables. I support his decision because Nigerian Banks are a disgrace to their profession and to the country. But we must remember the MD's and their Board did not commit any crime.

Soludo is still  the reference point of success in the history of CBN governorship. Sanusi may equal or surpass it. It is a verdict for the future - not present and will not be based on a single policy decision.

How did Soludo become a failure?