Bloodydemon:


Buhari is a certified terrorist
Buhari will fail and after that he will be hit by stroke
Because Buhari is a terrorist
Apc Is bokoharam
Gej till 2019

no wonda u still dey where u dey continue oooooo OYO 4 U

kaboninc:


I don't know if I should lecture you in a civil, moral and calm way or blast you with insults and still lecture you. Maybe you'll learn should I use the latter method. But my conscience will deal with me.

See what you just wrote, and with confidence!


That means you actually do not know a thing about this subject matter. And you talk to me in a way like you know? With facts to support you?

Let me feel you in, just a bit.

During Soludo's bank consolidation exercise, banks were ask to recapitalise so as to strengthen their capital base. The essence was to birth a stronger, robust, confident, flexible, effective and sound banking system. The banks were taunted to lead the growth and development of the economy. These capital injections were to come from various sources, Private Placements, IPOs, bonds, mergers, acquisitions, etc. But do you know what happened?

After the exercise, some banks made it (25 of them) and others couldn't. Today 3 of these banks have gone under and had to be acquired by the government. 5 of these banks were given lifelines by the banks. Others had to make huge provision for large non-performing loans. These loans were latter acquired by AMCON. Remember also that crude oil prices went down as it is today. The Capital Market was bailed out with about N30 billion. About N8.6 trillion naira was lost between 2007 - 2010 and Soludo was the Chief Banker from 2004 - 2009. You know what that meant, reckless abandon, little or no supervision, bad policy planning post consolidation exercise and poor risk management.

Under Soludo's watch, banks gave out loans to their staff to buy the bank's shares. You know what that did, it jerked the share price of the banks causing the banks to be overpriced. So many insider dealings I do not want to going into. All these under Soludo's watch! You know what it cost us as a nation?

Coming to your debt, it is very normal and healthy to take loans. What matters is what you do with it. There are so many factors to consider before taking loans. Such as the GDP, income generation, needs appraisal, etc. So if a loan can be obtained to build rail tracks from the North to the South of Nigeria, buy trains to convey people and goods along this corridor, after which deductions will be made for gradual payment of the loan, then there's absolutely nothing wrong with it.

We borrow for many reasons - no ready cash or easily convertible asset, to meet a need, etc. I believe I've given you some lectures to ruminate. Please read carefully, make your research before coming here to counter me.

Thanks and cheers!

You guys keep making uninformed utterances just to support a misguided govt.
One question...those banks rescued by AMCON;cud they have been rescued by their shareholders?..wat stops Sanusi from asking the shareholders to recapitalize tru right-issue?why did sanusi have to create unnecessary panic in the industry knowing wat that cud result to?I know a bank own by northerners that was never as strong as any of tge five,why didn't tge same hammer fall on it?you will need to do more to defend your lose ends..an if u are looking for wu to throw insult at,as u stated earlier,plz don't bother replying

fairheven:


You guys keep making uninformed utterances just to support a misguided govt.
One question...those banks rescued by AMCON;cud they have been rescued by their shareholders?..wat stops Sanusi from asking the shareholders to recapitalize tru right-issue?why did sanusi have to create unnecessary panic in the industry knowing wat that cud result to?I know a bank own by northerners that was never as strong as any of tge five,why didn't tge same hammer fall on it?you will need to do more to defend your lose ends..an if u are looking for wu to throw insult at,as u stated earlier,plz don't bother replying

Fairhaven,

It appears you just do not want to learn. If you say am making uninformed utterances, why don't you do a Google search to counter me? This is a proof that you do not know what's really happening!

AMCON came as a last resort because these banks were operating with NEGATIVE CAPITAL! The Shareholder's fund had been eroded due to issues like bad non-performing loans. These banks could not/had serious difficulty in meeting their customer's liabilities and so had to sought for help in the Interbank Window. The rate at which request were made really caused concern to both lenders and the regulators. This made CBN to carry out a special audit on all banks and 3 banks were found to be technically bankrupt. These banks held considerable percentage of total deposits (private and government) in their vaults and going under will send a devastating reverberating shock within the economy. So CBN had to firstly, inject some funds into these banks to restore credibility and guaranty obligations undertaken by these banks both within the banking sector and the economy at large, ensuring continuous flow of normal banking activity in these banks. That fund was later converted to equity and transferred to AMCON. That was how AMCON came in.

I am just 'gisting' you on things that happened so you at least you can understand where am coming from.

In investment, there's what we call Investors' Confidence. The Capital Market crashed and investors lost a whole lot of money and the confidence was lost. I particularly know of a client who lost almost N100 million on margin trading (do you know what that is?). Can you compare the number of Public Issues (Public Offers, Right Issues, IPOs) embarked upon by companies (most especially banks) in 2004 to early 2008 (when banks were sourcing for funds) and early 2010 to date?

How many public issues have you seen? Even the public issues you know of, what is the subscription rate? WHERE WILL THE MONEY COME FROM? Daar Communications sold her IPO for N5.00 per share and now, it trades N0.50. What's the price Costain WA Plc? Bank PHB sold a Public Offer issue of N17.00 per share, today where's Bank PHB? What about the dirty deals by the insurance companies (dubious, dirty, fictitious Private Placements at nominal value greater than 50 kobo)? If investors can loose huge sums of money like this, how then will they fund the right issues? OR will another set of investors come from the MOON?

The bank you are referring to is Unity Bank. I'll leave you to do a proper research on that bank.

kaboninc:


What then is your point?

In 2007 - 2010 especially late 2008 to early 2009, thw world was knocked into a financial mess and our very own Soludo messed up big time. Within that same period, the price of crude oil also drop to a low of close to $38 per barrel. And it stayed down for a long time. What happened, 8 banks were exposed, Capital Market crashed, inflation went up.

Today, the world is still recovering from that financial mess but still new discovery in Shale Oil exploration led to crude oil prices to fall and fall as low as $40 per barrel. However, there is still no single bank to be declared bankrupt, the market only slumped but still active, inflation still single digit and rising by 0.1 basis point as at January 2015, import bill reduced especially on rice because we now produce rice. Yet roads are being built, railways constructed, trains bought, power plants built, universities built, salaries increased, Army equipped, airports remodelled!

Does this not tell you that someone is working?

Dude, you're funny or should I say you're a funny johnathanian. Some is working, right ?
Well some of you will not be working soon according to this report;

www.dailytrust.com.ng/daily/business/48104-naira-fall-job-losses-imminent-in-banks

Let's be real about real issues, leave sentiment,FEAR and tribalism behind and embrace true patriotism for a change. This govt has failed. Its time to pack up and go !

All the above you wrote is akin to building imaginary castles in the sky. We need to face the realities on ground and react accordingly to secure the future, for ourselves and posterity.

stevecantrell:


Dude, you're funny or should I say you're a funny johnathanian. Some is working, right ?
Well some of you will not be working soon according to this report;

http://www.dailytrust.com.ng/daily/business/48104-naira-fall-job-losses-imminent-in-banks

Let's be real about real issues, leave sentiment,FEAR and tribalism behind and embrace true patriotism for a change. This govt has failed. Its time to pack up and go !

You my friend is terrible. Take your change to yourselves before coming to me. Did you even read the news extract you posted its source? No make me change am for you now. Pay attention to the bold parts:

Indications emerged yesterday that banks in the country may consider retrenchment and other cost-cutting measures if nothing concrete is done to arrest the free fall of Naira due to Federal Government devaluation policy. This is just as the exchange rate of naira to a dollar remained at N215 at the black market in Lagos. Penultimate Wednesday, the Central Bank of Nigeria (CBN) announced the closure of foreign windows in the country in order to save the nation’s economy from collapse due to the Naira fall.

The policy was greeted with mixed feelings by experts and stakeholders in the nation’s economy. Our correspondent gathered that the downward swing of Naira in recent time is hitting the banks below the belt and would have no choice than to lay off some staff and cut some of their expenses in case the situation degenerates. It was further gathered that the cost-cutting measures would be necessary in order to pave way for the banks to remain afloat in business. President of the Association of Senior Staff of Banks, Insurance and Financial Institution (ASSBIFI), Comrade Sunday Salako told our correspondent that banks and other financial institutions in the country are not immune from the shocks created by the Naira fall.

He said: “There is no way the Naira fall in the country will not affect the banks. Most of the banks in Nigeria also borrowed in foreign denominated currencies. They have to pay more in Naira now to service the loan because of the fall in Naira value. That will have a toll on the balance sheets of the banks.

When the world fell into a Financial Mess did you know how many jobs were lost? The big banks in US that went under? In UK? Intercontinental Bank, Oceanic, Union Bank, Costain WA, Insurance companies? Did the world come to an end? Did you DIE? Was OBAMA CHANGED? Are you aware that the Nigerian Government (Federal) is planing a cost cutting measure ACROSS BOARD because of the decrease in revenue? Do you also know that same is happening to Russia and other countries? Don't you know that institutions (private or public) need to cut cost to measure up with what comes in? Abi in your myopic mind, you plan to spend (and actually spend) more than you earn?

Carry your change mantra to the sheep. Not us.

kaboninc:


You my friend is terrible. Take your change to yourselves before coming to me. Did you even read the news extract you posted its source? No make me change am for you now. Pay attention to the bold parts:



When the world fell into a Financial Mess did you know how many jobs were lost? The big banks in US that went under? In UK? Intercontinental Bank, Oceanic, Union Bank, Costain WA, Insurance companies? Did the world come to an end? Did you DIE? Was OBAMA CHANGED? Are you aware that the Nigerian Government (Federal) is planing a cost cutting measure ACROSS BOARD because of the decrease in revenue? Do you also know that same is happening to Russia and other countries? Don't you know that institutions (private or public) need to cut cost to measure up with what comes in? Abi in your myopic mind, you plan to spend (and actually spend) more than you earn?

Carry your change mantra to the sheep. Not us.

You are just anti-"CHANGE", but it always happens...eventually !

stevecantrell:


You are just anti-"CHANGE", but it always happens...eventually !

If there should be any change, it should be in Lagos!

kaboninc:


If there should be any change, it should be in Lagos!

At least we agree on something...Lagos is overdue for a change, the leadership have grown complacent and only feeding us with propaganda. Change is good, it keeps the political class on its toes.

Change at the federal level at this time may not be a magic bullet but it will send a message to dead-weight politicians who want to occupy a seat just for the sake of occupancy , gone are those days !!!

stevecantrell:


At least we agree on something...Lagos is overdue for a change, the leadership have grown complacent and only feeding us with propaganda. Change is good, it keeps the political class on its toes.

Change at the federal level at this time may not be a magic bullet but it will send a message to dead-weight politicians who want to occupy a seat just for the sake of occupancy , gone are those days !!!

Lool. We agree on change for Lagos.