Atedo Peterside Knocks Out Soludo

It is easier to be a PhD holder in Nigeria (like Soludo and Sanusi) than to have common sense. Soludo inadvertently helped to destroy/weaken the stock market with is bank recapitalization experiment now Sanusi wants to destroy the banks (or some banks) with his own experiment. Helpless Nigeria is been used as a Guinea Pig. 

What do we call this statement by Peterside-Harlotry(adultery). Sleeping with d current governor/government.

Discrediting d monumental achievement of prof soludo wil get sanusi n his cohorts no wher.wot kind of introduction is dis?3weeks old sanusi?time wil judge him of course!

'Hasty rise = hasty fall'.soludo over-rushed his policies and that is exactly naijas problem.long term planning and gradual implimentation is a major key to lasting economic development and stability.soludo had good ideas but implemented them in a haste thereby giving false impression of miraculous growth.sanusi i'm afraid seem to be following thesame pattern but from different angle.

The only banker i will ever listen to is Mr. Atedo Peterside.
i will have to analyse his comments critically.
I do not trust any member of the Nigerian elite but if i must give my ears to the comments of any of them, it will be Mr. Peterside.
He is no sycophant, neither is he an empty head.

 CBN-Induced Banking Crisis- A Solution – by Bayo Adeyinka
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At the risk of sounding like a broken record, I wish to reiterate that this current crisis which is totally uncalled for was induced by SLS, the CBN Governor. Events are now turning out to show his actions were not well thought out. You don't solve a problem by creating a bigger problem!

 Now, a bigger mess has been created which will take nothing less than 4 years to clean up (quote me). A great crisis of confidence has been generated both in Nigeria and outside. Aside the flight to safety (where customers withdraw their deposits from banks that are perceived to be weak and take them to seemingly stronger banks) in Nigeria , Nigerian banks in other African countries have witnessed panic withdrawals or unusually desperate enquiries on their health. It is a boomerang effect. The gains of the past 5 years have been eroded with a single hare-brained statement!
 
 Having realised his gross school-boy errors, SLS has now embarked on a clean-up assignment to foreign countries, trying to clean up the mess. Foreign banks have withdrawn credit lines. Letters of credits that have been opened by importers and guaranteed by foreign correspondent banks are at risk. Banks have been witnessing recall of transferred funds. Simply put, an import-dependent economy like Nigeria is in deep trouble. Credibility of Nigerian banks have been impaired. The issue is now beyond 5 so-called banks. ALL BANKS ARE NOW AT RISK.
 
 What is basically a civil matter and could be resolved within the ambit of sense and the law courts have been turned into a show-boating event by the EFCC, which has suddenly woken up from stupor. I pray no cheque is written in the name of THE FEDERAL GOVT like Madam Waziri said because it will simply be re-looted by the recovered Abacha loot. Pray, an EFCC that couldn't do anything to Ibori and Kalu had to relocate to Lagos with 100 operatives. Is the EFCC a debt recovery agency? I wonder why a total expose was not done including publishing government agencies and parastatals who are owing!!! You can be sure the public sector is a greater culprit!
 
 It beats me why the Board of these banks couldn't have been called succintly and shown the audit results (if any) and encouraged to show the CEOs the door through board removals that will seem like an action carried out in a normal course of business! Was Soludo not aware there were issues? Yes he was. That was why he made room for the Expanded Window for them to borrow to get into shape again. He knew the nation could not afford any imposion! To me, that is a more matured way of handling what could turn out to be an economic suicide. What is more apalling is that there will be loss of jobs,  or what else do you expect to happen to banks that are unable to sustain their business? They will want to cut down on costs to remain afloat and the very first consideration will be to prune number of staff. So much for Sanusinomics!
 
 What are the immediate solutions to this perennial banking crisis?
 
1. The 5 banks' shareholders should immediately sue the CBN for an illegal take-over of their banks. The N100b each shared to those banks does not empower the CBN to appoint CEOs for the banks. I am happy Ibru and Akingbola have already challenged this action in court.
 
 2. The office of the CBN Governor must be split into two. The CBN Governor, as the office is, is too powerful. In most developed countries (e.g. UK and the US ), the HM Treasury and the FSA (Financial Services Authority) are different bodies. The Reserve Bank regulates the monetary policies for the government while the FSA regulates the banks and other financial institutions including mortgage banks and insurance companies. The Central Bank should only be concerned with stuffs like inflation, interest rates and control of money in circulation. Full stop. The Other body should be concerned with regulating banks and the body will comprise of selected people from the financial sector, academia, etc. That is what can guarantee independence and ensure there are no conflicts of interest. I know it is the National Assembly that can change the CBN Act and we have a long way to go with those snoring senators and bumbling representatives.
 
 3. There must be an imbibing of corporate governance in our institutions. Internal auditors must be empowered to blow the whistle when unethical practices are seen or perceived. They must have a reporting line to the Board and not the MD or their managers.

Bayo Adeyinka

http://www.huhuonline.com/index.php?option=com_content&view=article&id=276:cbn-induced-banking-crisis-a-solution--by-bayo-adeyinka-&catid=77:personal-tech&Itemid=177

The problem we have with most of our institutions in Nigeria is lack of continuity. Each newly appointed official would not see anything good in policy and approach of his predecessor but to look for ways and manners to discredit and rubbish whatever programme that was in place. Lamido Sanusi was part of the banking industry in Nigeria while Soludo was Governor. Didn't Sanusi have the right to air his opinion about what was going on in the industry then? Why wait till he became Governor before blowing the lid and exposing these toxic loans? I bet he knew what was going on then.
Mind you, I really support what he was doing about the five banks but that doesn't mean that Soludo should be pacified completely. To advance the financial standing of this country among the international community the statement Atedo Peterside was making in the London Financial District will not help. You cannot just go the outside world to wash your dirty clothes. What he should be doing is to give credit to where credit belongs by ascertaining  the benefits and achievements of Soludo's banking consolidations that has given some confidence to the capital base standings of our banking institutions . He should also be assuring the international community that we have just got another competent risk manager to continue where Soludo stopped. Financial world is a very sensitive world, any unguided utterances could spell a doom for Nigeria. Our Central Bank Governors whether past or present should be portrayed as very competent people and not as morons

Saunsi was one of the people that criticized Soludo publicly. His opinion was well known and he was one of the few executives that was not hiding behind "anonymous executive" in the newspaper when he criticized Soludo and the CBN.

Watch the interview with CNBC, this interview was done few weeks before his name started showing up in newspapers as candidate for CBN Governor. He talked about lack of disclosure, etc

http://www.youtube.com/watch?v=cOj4Vq6S20A

@Jacobs2412,
Sanusi has never hidden his opinions on the way CBN were running things, to the dissatisfaction of the Ibrus that were benefiting from CBN's laxity. Ever heard that Ibru and co raised 2.5b to stop Sanusi's candidature? 

Sanusi stopped criticizing CBN when his name came up as possible successor to Soludo. And of course, morality demanded that, lest he be seen as campaigning for himself.

Sanusi is one person that will tell anybody anything to his face.

atedo, watch your back! you may be next in jail!

@Jarus,

Omatek, a Fola Adeola chaired company made the CBN debtors list.

Chairman is a non executive position, has little say on operational activities. Hold Florence and her executives responsible. Moreso, Fola's appointment as Chair is just to give the coy reputation.

1. He's the one that has created a crisis of confidence in the banking system.

2. If Nigeria was a civilized country his action would have brought the government down. (How did the government get 400 billion naira to give to the banks without National assembly's approval.)

3. I guess, you've not seen the Vanguard's report that was made five months ago detailing what Mr Sanusi just did.

4. He seem to be the only one that thinks that the five banks were going to collapse sooner than later. (If he can give the other banks up till the end of September before doing anything about them, why not this five banks also.)   

Atedo Peterside should have focussed on the merits of the Soludo's tenure, it's called PR.

His opening statement equates to a man pointing to his father's house with his left hand.

You'll never find a western representative say something detrimental to the interest of their country.

Too many Nigerian elites are too self-centered.

@Jarus,

But Nigeria is a country where people make serious decisions based solely on reputation. People still see Atedo as the leader of Stanbic IBTC even though he has moved on to the role of chairman. I believe that a chairman should intervene when the executive directors depart from the company's core vision. They shouldn't get huge cheques for just showing up in the newspapers. 

and what is so prophetic about the Vanguard article?
-  That soludo will not get a second term, when no CBN governor has done so in recent times, and after his brushes with the president was almost certain to be replaced
- Anyone privy to the state of things in the EDW could easily deduce that these five banks were in trouble, as they were constantly borrowing from other banks, without paying it back since October 2008
- That the CBN would have to take action against them else the collapse the entire sector. Even Soludo would have acted against them if he was reappointed. He likely feigned ignorance so as not to hinders his chances of a second term as governor.
- Given the size of the banks involved (and the recent court rulings on Savannah issue) , that the CBN would have no choice but to inject funds into this bank.
- That the banks would have to be transitioned into a new management (and possibly ownership where needed) to recover the CBN funds and move the banks forward as a going concern
- Given the distribution of wealth in Nigeria, it is highly likely that some of the investor might come from the north (afterall they are like half of the country).

Yet some people simply ignore the failings of the prophecy like
- The top 5 banks are targeted, yet the banks affected are not the top 5 banks as claimed by the article
- The group were supposed to force the banks into liquidity problem by depositor withdrawing their money, yet said 5 banks are in trouble because the have been borrowing from other banks without repayment, lost money because they invested heavily in stocks and oil & Gas, and because they have huge amounts of loans that they have failed to collect on, but rather doctored their books. Their failure is their own handiwork, and not because of some text messages sent by some group
- The government was supposed to take equity in the banks, yet the CBN has not done so. The funds injected were tier 2, which is essentially like an insurance policy, and not tier 1 which could have been termed has buying equity in  the company.

Short of the coincident number 5, the rest is malleable for anyone gullible enough

Though that Nigerians cant reason on facts and figures is not surprising, else how would one explain the thriving throng of false prophets, fake pastors, and crooked imams.