Now that you've all gone to sleep, can I post? CAN I POST?

First, my dear friend davidylan, if Sanusi fired Southern CEOs and replaced them with Northern CEOs, we can contemplate the Northernization of the banking industry. Not with the way thing went.


Look at all these banks. Starting with Union Bank, Finbank and Afribank, do you need a soothsayer to tell you that these banks are dead. Coming to join them in that mass grave soon are Unity Bank, Wema Bank, Sterling Bank and Spring Bank too would have been there if not for their acquisition by Platinum/Habib Bank. All these Banks mentioned, you don't need an oracle to divine their destiny.


The banks that you'd be suprised to see on that list though are Oceanic Bank and Intercontinental Bank. However let me tell you this. Did you know Oceanic Bank was one of those sponsoring the Third Term Agenda? This alone will tell you that they were trying to seek favours from the Federal Government to stay alive. Every economic summit I watched from 2007 till date, Cecilia Ibru always sat by Soludo. I said to myself, that bank is in trouble. That is the investment eye. You look at a picture and see data.

Intercontinental Bank was on these pages just as frequently as MEND was. Where you have Lucky Igbinedion as one of their major depositors. CEO buying Private Jets, Radio Stations and all sorts. Wearing bling-bling all over the place like he's Snoop Doggy Dogg. This bank had sold themselves to AIG through several underhand deals and I knew they would have serious crises. Their depositors woke up one morning to find their minimum deposit had become N10,000 overnight at one time.


I'll tell you all that every single bank in Nigeria today is stressed, but the most outrageously insanely alarming are the ones CBN took control of.


I know because of the Pa James analysis we use to outline issues on Nairaland, must people take my words with a pinch of salt. Okay. No wahala. Carry go!

@babyrl who are you?.A CBN staff or one of the CBN governors media advisers.

First, my dear friend davidylan, if Sanusi fired Southern CEOs and replaced them with Northern CEOs, we can contemplate the Northernization of the banking industry. Not with the way thing went.

dude don't waste your breath. your friend is a poster child for ethno religious bigotry - the idea that anything good can come from a muslim, arab, or northerner is something beyond anathema to him

Good morning y'all, this major shakeup to the financial sector may have been necessary but i would have been more convinced that there's no hidden agenda if audits had been completed on ALL 24 banks before a decision like this was made.i sincerely hope Lamido is not acting out someone's script! If not,he should ensure that these 5 banks are protectd from hostile takeovers by selfish cartels. I also expect him to be very visible over the weekend to prevent a run on these banks on monday! Management of this situation is key at this point.

well said, hammer

@hammer07,this is a very political decision.Days ahead will only confirm our thoughts and fears.

Sanusi said their huge exposure to the capital market and massive non-performing loans were the key factors that contributed to the liquidity problems in the affected banks.
He said when he became the governor of the CBN, he was alarmed at the quantum of exposure which some of the banks had.
Sanusi said their exposure to the capital market which had lost over 70 percent of its value was a long-term problem “unless people believe that the capital market will pick up in the next few months and I do not think that stocks are going to go back to that very high level within a short time.”
As a result, he said the CBN asked for a special examination of these five banks which by the apex bank’s estimates were showing signs of distress given the length of time they spent at the Expanded Discount Window (EDW) introduced last September by the former CBN governor, Chukwuma Soludo to shore up their liquidity.
Sanusi said: “If we take the average exposure at the discount window every month, between October last year and July this year, these five banks accounted for 90 percent of transactions at the EDW.
“The remaining banks accounted for 10 percent. This for me is an immediate sign of distress. We tested it further and closed the window and said no more money.
“We then guaranteed interbank placements. If we didn’t guarantee the inter-bank market, banks will not lend to them.”
“But when we did this, we immediately saw the affected banks taking money from the interbank market to repay their exposure to the discount window.
“This was clear evidence that they do not have cash at all. Their balance sheet had shrunk. The cash had gone. There were clear signs of the banks going under.
On seeing these signals, we sent in special examiners. The idea was to go and find out the true position of things.”
The CBN governor said what they found was not so much of a surprise, “but I think the extent was alarming because I did not believe that there were banks that have up to 48 or 50 per cent non-performing loans of their total loan portfolios.”
He said what the banks needed to do was to provide for these loans and to raise capital which they could not do.
He said decisions by the management of the affected banks exposed them to the capital and oil markets and risked their depositors’ funds. “This was the basis for the decision to sack them,” he explained.
Sanusi added that once the decision was taken to inject capital into the institutions as a lifesaver, there is no way the CBN was going to allow the same team to manage the funds which belong to the public.
Sanusi disclosed that the CBN would inject N405 billion into the five banks because they urgently needed fresh funds.
He explained that the capital injection is just a temporary measure in the form of Convertible Tier II Debt which shall be repaid to the CBN once the banks are recapitalised. “It does not translate into the government taking up equity,” he stressed.
The CBN governor assured that the banks could still be returned to the owners if they are able to raise fresh capital.
“If today, the owners of the banks come up with the capital and bring it in and say to us, look we can bring in the N100 billion or N120 billion that you want, we will take it and give them back the banks. All we want is to save the institutions,” Sanusi said.
He explained that the N405 billion being injected into the banks is a convertible loan.
“We want to make sure that whatever we provide is not a loan that will be taken back immediately. We want the management to know that they have this money until they get fresh capital.
“Yet, we also want to make sure that we don’t lock ourselves permanently because the last thing we would want is to get Nigeria back to the era of nationalising banks,” he said.
The governor stated that he does not anticipate that the continuing audit of 14 other banks will throw up considerable surprises since the decision on the five yesterday was based on the CBN’s assessment of banks which show signs of distress.
With the removal of the CEOs and their EDs, the CBN yesterday appointed acting CEOs to head the management teams of the five banks.
The acting CEOs and their financial institutions are: Mr John Aboh, who is to take over at Oceanic Bank; Mahmud Alabi - Intercontinental Bank; Nebolisa Arah - Afribank Plc; Mrs. Suzanne Iroche - Finbank and Mrs. Funke Osibodu - Union Bank.
The CBN has mandated the new helmsmen to continue with the businesses of the banks as going concerns.
Addressing journalists in Lagos after a meeting with the CEOs of the 24 banks operating in the country, Sanusi said the banks showed serious liquidity strains since October last year and had to be given financial support by the CBN in the form of the EDW, where the CBN extended credit facilities to the banks on the basis of collateral in the form of commercial papers and bankers acceptances, “sometimes of doubtful value.”
“The total loan portfolio of the five banks, was N2.8 trillion, with margin loans amounting to N456 billion, exposure to oil and gas N487 billion, aggregated non-performing loans N1.143 trillion, representing 40.81 per cent,” said the CBN governor.
He also stated that one of the banks was technically insolvent with a capital adequacy ratio of 1.01 per cent, adding that a minimum capital injection of N204.94 billion will be required in the five banks to meet the minimum capital adequacy ratio of 10 per cent.
The outstanding balance of the five banks on the EDW, said Sanusi, amounted to N127.85 billion by end of July 2009, representing 89.81 per cent of the total industry exposure to the CBN, while their net guaranteed interbank takings stood at N253.30 billion as at August 2, 2009.
He said their liquidity ratios ranged from 17.65 per cent to 24 per cent as at May 31, 2009 and against the regulatory minimum of 25 per cent.
The CBN governor said at the time of his assumption of duty on June 4, the banks owed a total N256.6 billion at the EDW.
He said a review of the activity in the EDW showed that four of the banks were almost permanently locked in as borrowers and were already unable to repay their obligations.
He explained that a fifth bank had become a very frequent borrower “when its profile ordinarily should have placed it among the net placers of funds in the market.”
The apex bank chief noted that three of the five banks were systemically important to the banking sector, accounting for more than five percent of the assets and deposits in the sector, while together, the five banks account for 39.93 per cent of loans; 29.99 per cent of deposits and 31.47 per cent of total assets as at may 31, 2009.
Five other banks - Diamond Bank, First Bank, United Bank for Africa, Guaranty Trust Bank and Sterling Bank - were found in a good financial state by the joint team of examiners from the CBN and Nigerian Deposit Insurance Corpor-ation.
The CBN has fixed mid-September as deadline for the conclusion of the audit of the remaining banks.

Level of Exposure
Total Loan Portfolio - N2.8 trillion
Margin Loans - N456 billion
Oil & Gas Loans - N487 billion
Aggregate NPLs - N1.143 trillion

http://www.thisdayonline.com/nview.php?id=151636

who are these loan defaulters?

Robotnik:

Why are northerners trying to destroy this economy, first they cheated the south-south by sucking their oil money , now the banking sector that was still okay will soon be crippled , very soon they will face telecommunication and the Nigeria will be a failed state.

Very soon you guys will start blaming OBJ, OBJs regime, still the best!

So this is some northern agenda?

When Ribadu was arresting all the thieves, your likes also said it was a northern agenda?

flyuche:

no. these graduates are made to work in all the wrong departments. what's an engineer doing in marketing dept.? besides advancing loan to importers of rice , sugar , flour , salt you consider that a worthy invest? that's how all these problems started.

Welcome to civilisation and modern career development, if you don't like it or understand it, go back to your village and wallow in ignorance.

John Birt - Engineering (3rd Class) [DG of BBC]
Andrew Witty - Economics [CEO GSK]
John Valey - History & Law [CEO Barcalys Bank]
Eric Daniels - History & Management [CEO Lloydstsb]
Charles Prince - Law [CEO Citigroup]
Andy Cosslett - Economics [CEO InterContinental Hotels Group]
Stuart Rose - No Degree [CEO Marks & Spencers]

I guess the world left you and your thinking behind.^{Thank goodness!}

hollandis:

Sanusi is idiotic
Read his statement

http://www.nigerianmuse.com/20090814214307zg/spotlight/why-we-fired-akingbola-ibru-ebong-others-cbn-governor-sanusi-lamido-sanusi

1.)"Due to these circumstances, I instructed the Director of Banking Supervision of the CBN to carry out a Special Examination of the following banks:"
1. Afribank Plc
2. Finbank
3. Intercontinental Bank Plc
4. Oceanic bank Plc and
5. Union Bank Plc.

Why the selection?Why didn't the slowpoke do a complete overhaul?This is tantamount to witch hunting

Witchhunting??

Conjecture throwing rumour mongers!

The 5 banks that are target are the ones that utilise 90% of the funds provided for banks over several months by the CBN.

So why is it a mammiwaterhunt that he is investigating the reason they always lack funds, Mr Conspiracy Theorist?

hollandis:

2. "the world economy has been hit by recession following the financial meltdown , In Nigeria, the banking system appears to have weathered the storm due to a number of factors. Among these is the fact that our financial system is not strongly integrated into the international financial System as well as the relatively simple nature of financial products and strong capitalization and liquidity of Nigerian banks."

This is an attempt to discredit Soludo.Is Sanusi saying the effect of post consolidation did not cushion the effect of the global recession?

If you do not know his right then please keep quiet when you see topics like this, Mr Conspiracy Theorist.

And note the bolded text and think of Soludo's credit.

hollandis:

3.As we are aware, the world economy has been hit by recession following the financial meltdown that started with the sub-prime mortgage crisis in the United States of America and spread to Europe and other parts of the world. This crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt.

I hate people especially top echelons comparing us with other nations esp America.Nigeria is not and will never be a developed country in the next 100 years or more.Americans have worked out their economy and development with painstaking fear ,stress,trembling and losses ,now they have been catapulted to this realm of glory and splendor.Nigeria does not have an economy.I know russia is a communist,some other countries are either socialist,feudal, capitalist,aristocrats et al,but where lies Nigeria?

Where did you see comparison to Nigeria?

davidylan:

welcome to the northernisation of nigeria

Moronicity exemplified!

babyrl:


Only banks that their CEO's went overboard in terms of cooperate governance, not following their own (individual banks) risk assessment were removed.

He never said anything bad about Soludo, but Soludo has some questions to answer. Why did he not notice that one of this 5 banks was technically insolvent and was using money from CBN loans and inter bank which it was getting at a regular basis to stay afloat?

First Bank of Nigeria was the first to be audited. (He audited the big banks first because of their importance to the economy)

Tier 2 is the type of capital (structure) the CBN used in putting money into the banks. In Tier 2, the CBN is not buying shares of the bank to raise capital. The CBN is just putting the money there so that banks can use upon approval by the CBN to meet obligation.

darqly:

And just what qualifies the unaffected banks to be northern?Pls be more objective,we don't have to give everything in our country ethnic or religious coloration.These banks are PLCs that were being run like personal piggy banks.Some of them are not so much overexposed as they are mismanaged e.g Union bank.The leadership there clearly lacks focus and vision,follows the bandwagon and don't subscribe to innovation.And consider Inter, how can you concentrate 35bn to 3 borrowers?Smacks of arrant ineptitude not to diversify your loan portfolio. That the reform is being championed by Sls doesn't make it a northern agenda,how many northern banks exist btw, you call dis-unity a bank?

Thank you, guys.

Don't mind the morons. It is when then they lose all their money in a Naija bank or their parents lose their life savings and pension that they would realise the importance and significance of doing this.

Then if the above happpens they will run here to say Nigeria is a failed state.

Typical Nigerians, know nothing about an issue but want to be the loudest and most boisterous.

http://www.tribune.com.ng/15082009/news/news4.html

For The Record: Address By The Governor Of The Central Bank Of Nigeria, Mallam Sanusi Lamido On Develoments In The Banking Systemin Nigeria On August 14, 2009.
15.08.2009

Distinguished Ladies and Gentlemen of the Press. As we are all aware, the world economy has been hit by the repercussion of the financial meltdown that started with the sub-prime mortgage crisis in the United States of America and spread to Europe and other parts of the World. This crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt.

In Nigeria, the banking system appears to have weathered the storm due to a number of factors. Among these are the facts that our financial system, as well the relatively simple nature of financial products and strong capitalisation and liquidity of Nigeria banks.

However, there are many who have been aware for a while now that whereas the system in general is likely to absorb and survive the effects of crisis, the effects vary from bank to bank. A few Nigerian banks, mainly due to huge concentrations in their exposure to certain sectors (capital marker and Oil and Gas, being the prominent ones), but due to a general weakness in risk management and corporate governance, have continued to display signs of failure.
As far as October last year, some of the banks showed serious liquidity strain and had to be given financial support by the Central Bank in the form of an “Expanded Discount Window” (EDW) where the CBN extended credit facilities to these banks on the basis of collateral in the form of Commercial Paper and Bankers’ acceptances, sometimes of doubtful value.

As at June 4, 2009 when I assume office as Governor of the CBN, the total amount outstanding at the Expanded Discount Window was N256.57 billion, most of which was owed by the five banks.
A review of the activity in the EDW showed that four banks had been almost permanently locked in as borrowers and were clearly unable to repay their obligations. A fifth bank has been a very frequent borrower when its profile ordinarily should have placed it among the net placers of funds in the market. Whereas the five banks were by no means the only ones to have benefited from the EDW, the persistence and frequency of their demand pointed to a deeper problem and the CBN identified them as probable source of financial instability, most likely suffering from deeper problems due to non-performing loans.

The impact of the situation of these banks was being felt by the market in different negative ways. Because of this strain in their balance sheets, the banks pushed up the interest rate paid to private sector deposits and their competitors had to follow suit. They also contributed to the destabilization of the inter-bank market as many of their competitors were unwilling to take an unsecured risk on them. It was primarily because of these banks, or at least some of them, that the CBN took the step of guaranteeing the inter-bank market when it stopped granting new lines under the EDW. Without that guarantee, almost four banks would not have been able to borrow in the inter-bank and would probably have collapsed.

As you are aware, we guaranteed the inter-bank market to give us the time to conduct a thorough diagnosis of the banks and ensure that appropriate remedial action is taken. At least four of the banks in question have, since the guarantee come into force either remained heavy users of funds at the EDW or drawn heavily from other banks under cover of the CBN guarantee to wind-down at this window. In all events, it is clear that they do not have the ability to meet their obligations to depositors and creditors as they are in a grave situation.

In view of the aforementioned circumstances, I instructed the Director of Banking Supervision of the CBN to carry out a Special Examination of the following five banks:
1. Afribank Plc
2. Finbank Plc
3. Intercontinental Bank Plc
4. Oceanic Bank Plc and
5. Union Bank Plc.

The examination was conducted by a joint team of CBN and NDIC officials. The major findings on the five banks included:
1. Excessively high level of non-performing loans in the five banks which was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to the bank's credit risk management practices.
Thus the percentage of non-performing loans to total loans ranged from 19% to 48%. The 5 banks will therefore need to make additional provision of N539.09 billion.
2. The total loan portfolio of these five banks was N2,801.92 billion. Margin loans amounted to N456.28 billion and exposure to Oil and Gas was N487.02 billion. Aggregate non performing loans stood at N 1,143 billion representing 40.81%.
3. From 1 and 2 above, it is evident that the five banks accounted for a disproportionate component of the total exposure to Capital Market and Oil Gas, thus reflecting heavy concentration to high risk areas relative to other banks in the industry.
4. The huge provisioning requirements have led to significant capital impairment. Consequently, all the banks are undercapitalized for their provisions for loan losses, which impacted negatively on their capital.
Indeed one is technically insolvent with a Capital Adequacy Ratio of (1.10%). Thus, a minimum capital injection of N204.94 billion will be required in the 5 banks to meet the minimum capital adequacy ratio of 10%.
5. The five banks were either perennial net-takers of funds in the inter-bank market or enjoyed liquidity support from the CBN for long periods of time, a clear evidence of illiquidity. In other words, these banks were unable to meet their maturing obligations as they fall due without resorting to the CBN or the inter-bank market. As a matter of fact, the outstanding balance on the EDW of the five banks amounted to N127.85 billion by end July 2009, representing 89.81% of the total industry exposure to the CBN on its discount window while their net guaranteed inter-bank takings stood at N253.30 billion as at August 02, 2009. Their Liquidity Ratios ranged from 17.65% to 24% as at May 31, 2009. (Regulatory minimum is 25%).

It is important to note that at least three of the banks are systemically important (accounting for more than 5% of Assets and Deposits in the Banking System) and together the five banks account for 39.93% of loans, 29.99% of deposits, and 31.47% of total assets as at May 31, 2009.
Consequently, having reviewed all the reports of the examiners and the comments of the Directors and Deputy Governors, I am satisfied that these 5 institutions are in a grave situation and that their Management have acted in a manner detrimental to the interest of their depositors and creditors. Therefore, in exercise of my powers as contained in Sections 33 and 35 of the Banks and Other Financial Institutions Act 1991, as amended, and after securing the consent of the Board of Directors of the CBN, I hereby remove the Managing Directors and the Executive Directors of the following banks from office with effect from Friday, August 14, 2009.
1. Afribank Pic
2. Intercontinental Bank Pic
3. Union Bank of Nigeria Pic
4. Oceanic International Bank Pic
5. Finbank Pic

These persons forthwith cease to be directors and officers of their respective banks.
The Board of the Central Bank of Nigeria has also appointed the following as the MD/CEOs of the affected banks:
1. Mr. John Aboh - MD/CEO Oceanic International Bank Pic
2. Mr. Mahmud L. Alabi - MD/CEO Intercontinental Bank Pic
3. Mr. Nebolisa Arah - MD/CEO Afribank Pic
4. Mrs. Suzanne Iroche - MD/CEO Finbank Pic
5. Mrs. Funke Osibodu - MD/CEO Union Bank Pic

Each of the above will head a management team that will include Executive Directors and Chief Financial Officers to be appointed by the CBN. This team is tasked with continuing the businesses of the banks as a going concern. I therefore appeal to the Boards of the affected banks, in their own interest, to co¬operate with the newly appointed Executive Management.

We are conscious of the fact that changing management alone will not resolve this problem. Consequently, the CBN is injecting a total of about N400 billion into these five banks with immediate effect in form of Tier 2 Capital to be repaid from proceeds of capitalization in the near future.
This injection is sufficient to resolve and stabilize all the institutions and enable them continue normal business. The injection of fresh capital by the CBN is a temporary measure as government does not intend to hold the shares for long and shall divest its holdings as soon as new investors recapitalize these banks.

Let me also advise all debtors of Nigerian banks, that the CBN and all government agencies are united in our commitment to support the recovery efforts of the banks. Debtors who do not pay shall have their names published in National Newspapers in due course and we will solicit the support of law enforcement agencies in recovery.
Let me reassure especially the customers of the affected banks and all the banks in general that there is no cause for alarm. They should continue to transact their normal business in the banks where their accounts are domiciled as this exercise is meant to further strengthen the banking industry and recapitalize the affected banks.
I should also state at this point that the scope of the Special Examination was widened to cover all 24 banks. So far, we have concluded the audit of 10 banks including these five, the others being Diamond Bank, First Bank, United Bank for Africa, Guaranty Trust bank and Sterling Bank. We have also commenced the next batch of 11 banks and hope to conclude them by end of August. All in all, we expect to conclude the audit in mid-September. The Central bank is requiring all banks to make appropriate provisioning for non-performing loans and disclose them. We hope that by the end of this quarter, all banks would have cleaned up their Balance Sheets. On the basis of the information available to us so far, we are confident that the banking system is safe and sound and we have dealt with the major sources of systemic risk.

I will conclude by restating that, going forward, the CBN will not waiver in its desire to ensure that public confidence in the Nigerian banking system is maintained through appropriate disclosures and the reinvigoration of its policy of zero tolerance on all professional and unethical conducts.
We will not allow any bank to fail. However, we will also ensure that officers of banks and debtors who contribute to bank failures are brought to book to the full extent of the law and that all proceeds of infraction are confiscated where legally feasible.

Thank you.

hammer07:

Good morning y'all, this major shakeup to the financial sector may have been necessary but i would have been more convinced that there's no hidden agenda if audits had been completed on ALL 24 banks before a decision like this was made.i sincerely hope Lamido is not acting out someone's script! If not,he should ensure that these 5 banks are protectd from hostile takeovers by selfish cartels. I also expect him to be very visible over the weekend to prevent a run on these banks on monday! Management of this situation is key at this point.

Perhaps that is the exact reason it was done at the weekend instead of on Monday.

hammer07:

Good morning y'all, this major shakeup to the financial sector may have been necessary but i would have been more convinced that there's no hidden agenda if audits had been completed on ALL 24 banks before a decision like this was made.

What difference would this have made in achieving the goals?

hammer07:

Good morning y'all, this major shakeup to the financial sector may have been necessary but i would have been more convinced that there's no hidden agenda if audits had been completed on ALL 24 banks before a decision like this was made.i sincerely hope Lamido is not acting out someone's script! If not,he should ensure that these 5 banks are protectd from hostile takeovers by selfish cartels. I also expect him to be very visible over the weekend to prevent a run on these banks on monday! Management of this situation is key at this point.

Are you suggesting he waits for 'em banks to collapse before taking action? The risk identified by the stress test was probably 2 severe to sit on until the process was completed.

Sanusi is d el-rufai of d banking sector. I'm solidly behind him.
As 4 d likes of akingbola i'm seriously gloating. It's only intercontinental bank dt does nt allow staff to marry. Other banks allow as far as they r nt in d same branch. He's tryin 2 prevent 'embezzlement' frm both staff if they eventually marry. Shey nw his sins hv found him out? Ntooo
apparently not all dt glitters is gold (like florence ita giwa) he he he!

Sagamite:

Witchhunting??

Conjecture throwing rumour mongers!

The 5 banks that are target are the ones that utilise 90% of the funds provided for banks over several months by the CBN.

So why is it a mammiwaterhunt that he is investigating the reason they always lack funds, Mr Conspiracy Theorist?

Me conspiracy? not me ,maybe you

Yes according to him.The 5 banks outstanding balance was 89.81 per cent of the total industry exposure to the CBN .That means the remaining 10.19% means belonged to the other "20 banks" and other sectors.

Is this possible Mr conspiracy Ideology

Sagamite:

Witchhunting??
So why is it a mammiwaterhunt that he is investigating the reason they always lack funds, Mr Conspiracy Theorist?

In the words of Sanusi "In Nigeria, the banking system appears to have weathered the storm"~~~~~~~~~this crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt."

hmmmmm ,the country "appears" , ok sanusi is salvaging the country from the doldrums.He has started by firing 5 CEO'S and conniving with yaradull(your brother) ,bailing the banks , without consulting the National Assembly.Mr Conspiracy ideologist Senate ain't sleeping.Even obama(his comparison factor) followed due process.

Ohhhhhhhhh about the witch hunting thingy.Maybe I should have used wizard hunting.Right?

Sagamite:



If you do not know his right then please keep quiet when you see topics like this, Mr Conspiracy Theorist.

I will take it that exchanging words over the internet is as useful as shouting at a palisade fence.However if you decide to continue in your characteristic rampage use of silly and annoying words.I will prove to you that my bite is worse than my bark

Sagamite:


Where did you see comparison to Nigeria?

When you find the meaning of " in particular and in general " and also the meaning of the "microcosm of the larger society" then I will explain that to you.Mr conspiracy ideologist

moderators, please delete my duplicate thread.
i did not see this before starting that one.
kindly delete.

this  singular action has killed investor's confidence. There is going to be a run on these banks. He could have asked these CEOs to resign instead of ousting them. This Lamido is a banker not a micro or macro economist who undestands how the economy works. A banker is supposed to be the minister of finance while a seasoned economist will be appoinetd as the CBN governor. This might be the right decision, but was carried out in a wrong way which would send signals that all the banks are not sound. Naija  a crawl forward and a big jump backward. Whose bank is next?

before i go through the mountain of posts in this thread, can i make 2 comments?
first, there is no ethnic agenda here, so please no one should belittle the seriousness of the matter by making such simplistic and childish comments.
secondly, i do not mind who is removed as long as Cecelia Ibru is one of them.
Have you looked at her CV?
she has no business being a branch manager not to talk of being the CEO of a bank.
forget how the art and science of banking has been bastardized in Nigeria, it is a specialised trade and involves a lot of intricacies.
as long as we continue this voodoo banking in Nigeria. banking that is all about chasing crooks for deposits and giving loans to friends and relatives.
Sanusi try and enthrone meritocracy in the banking industry, please.

hollandis:

Me conspiracy? not me ,maybe you

Yes according to him.The 5 banks outstanding balance was 89.81 per cent of the total industry exposure to the CBN .That means the remaining 10.19% means belonged to the other "20 banks" and other sectors.

Is this possible Mr conspiracy Ideology

Oh, you are disputing his claim that the 5 are exposed to 90% of the EDW?

What are your reasons for disputing? Conjectures? If not, provide your own "right" figures.  

hollandis:

In the words of Sanusi "In Nigeria, the banking system appears to have weathered the storm"~~~~~~~~~this crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt."

hmmmmm ,the country "appears" , ok sanusi is salvaging the country from the doldrums.He has started by firing 5 CEO'S and conniving with yaradull(your brother) ,bailing the banks , without consulting the National Assembly.Mr Conspiracy ideologist Senate ain't sleeping.Even obama(his comparison factor) followed due process.

Ohhhhhhhhh about the witch hunting thingy.Maybe I should have used wizard hunting.Right?

Educate us on the due process based on the law of the land, son.

I am waiting.

hollandis:

I will take it that exchanging words over the internet is as useful as shouting at a palisade fence.However if you decide to continue in your characteristic rampage use of silly and annoying words.I will prove to you that my bite is worse than my bark


When you find the meaning of " in particular and in general " and also the meaning of the "microcosm of the larger society" then I will explain that to you.Mr conspiracy ideologist

After your bark and lame bite, I will treat you like Boris.

Don't take the piss, son!

[flash=450,300]http://www.youtube.com/watch/v/C55Zfeod8PI&feature/related[/flash]

adconline:

this  singular action has killed investor's confidence. There is going to be a run on these banks. He could have asked these CEOs to resign instead of ousting them. This Lamido is a banker not a micro or macro economist who undestands how the economy works. A banker is supposed to be the minister of finance while a seasoned economist will be appoinetd as the CBN governor. This might be the right decision, but was carried out in a wrong way which would send signals that all the banks are not sound. Naija  a crawl forward and a big jump backward. Whose bank is next?

you talk like you are not a Nigerian.
No one resigns here.
they would have refused that route.
Now they can claim to be victims and spend the next 2 years in court.
if they resigned, that route will be unavailable and they will b termed losers.
we have fundamental problems in the Nigerian society.

mbulela:

you talk like you are not a Nigerian.
No one resigns here.
they would have refused that route.
Now they can claim to be victims and spend the next 2 tears in court.
if they resigned, that route will be unavailable and they will b termed losers.
we have fundamental problems in the Nigerian society.

Thank you!

Retards like Beaf have the analytical deficiency to know a simple thing like this.

nex:

Now that you've all gone to sleep, can I post? CAN I POST?

First, my dear friend davidylan, if Sanusi fired Southern CEOs and replaced them with Northern CEOs, we can contemplate the Northernization of  the banking industry. Not with the way thing went.


Look at all these banks. Starting with Union Bank, Finbank and Afribank, do you need a soothsayer to tell you that these banks are dead. Coming to join them in that mass  grave soon are Unity Bank, Wema Bank, Sterling Bank and Spring Bank too would have been there if not for their acquisition by Platinum/Habib Bank. All these Banks mentioned, you don't need an oracle to divine their destiny.


The banks that you'd be suprised to see on that list though are Oceanic Bank and Intercontinental Bank. However let me tell you this. Did you know Oceanic Bank was one of those sponsoring the Third Term Agenda? This alone will tell you that they were trying to seek favours from the Federal Government to stay alive. Every economic summit I watched from 2007 till date, Cecilia Ibru always sat by Soludo. I said to myself, that bank is in trouble. That is the investment eye. You look at a picture and see data.

Intercontinental Bank was on these pages just as frequently as MEND was. Where you have Lucky Igbinedion as one of their major depositors. CEO buying Private Jets, Radio Stations and all sorts. Wearing bling-bling all over the place like he's Snoop Doggy Dogg. This bank had sold themselves to AIG through several underhand deals and I knew they would have serious crises. Their depositors woke up one morning to find their minimum deposit had become N10,000 overnight at one time.


I'll tell you all that every single bank in Nigeria today is stressed, but the most outrageously insanely alarming are the ones CBN took control of.


I know because of the Pa James analysis we use to  outline issues on Nairaland, must people take my words with a pinch of salt. Okay. No wahala. Carry go!

i am really suprised how Sterling came thru the inspection process, considering it is one of the 10 they have inspected?
i am waiting for unity to go that way too.
Sanusi, please try and arrest voodoo banking in Nigeria. it is the bane of the sector.
no one should use balance sheets in validating anything. those things are completely cooked.No iota of truth in them.

Erastus Akingbola's role in Intercontinental should be properly investigated.
that man is an epitome of everything that is wrong with Nigerian banking.
men who are so inscecure in themselves and keep acquiring and displaying obscenity in a bit to make up for their insecurity.

Sanusi is idiotic
Read his statement

http://www.nigerianmuse.com/20090814214307zg/spotlight/why-we-fired-akingbola-ibru-ebong-others-cbn-governor-sanusi-lamido-sanusi

1.)"Due to these circumstances, I instructed the Director of Banking Supervision of the CBN to carry out a Special Examination of the following banks:"
1. Afribank Plc
2. Finbank
3. Intercontinental Bank Plc
4. Oceanic bank Plc and
5. Union Bank Plc.

Why the selection?Why didn't the slowpoke do a complete overhaul?This is tantamount to witch hunting


2. "the world economy has been hit by recession following the financial meltdown , In Nigeria, the banking system appears to have weathered the storm due to a number of factors. Among these is the fact that our financial system is not strongly integrated into the international financial System as well as the relatively simple nature of financial products and strong capitalization and liquidity of Nigerian banks."

This is an attempt to discredit Soludo.Is Sanusi saying the effect of post consolidation did not cushion the effect of the global recession?

3.As we are aware, the world economy has been hit by recession following the financial meltdown that started with the sub-prime mortgage crisis in the United States of America and spread to Europe and other parts of the world. This crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt.

I hate people especially top echelons comparing us with other nations esp America.Nigeria is not and will never be a developed country in the next 100 years or more.Americans have worked out their economy and development with painstaking fear ,stress,trembling and losses ,now they have been catapulted to this realm of glory and splendor.Nigeria does not have an economy.I know russia is a communist,some other countries are either socialist,feudal, capitalist,aristocrats et al,but where lies Nigeria?

4.)The scope of the Special examination was widened to cover all 24 banks. So far, we have concluded the audit of 10 banks including the affected five, the others being Diamond Bank, First Bank, United bank for Africa, Guaranty Trust bank and Sterling Bank.
Mr Sanusi,please are you saying that "the 5 bank" were first investigated before the others i.e Diamond Bank, First Bank, United bank for Africa, Guaranty Trust bank and Sterling Bank?I am confused o.There seem to be a contradiction.
Have you given the latter 5 banks a clean bill of health?Please inform us.

5.)We are conscious of the fact that changing management alone will not resolve this problem. Therefore, the CBN is injecting about N400 billion into the affected banks with immediate effect in form of Tier 2 Capital to be repaid from proceeds of capitalization in near future.

Please are you saying they failed based on the tier 2?Do you know what tier 2 is?what criteria did you use ,because you were just quoting useless incomparative figures,no statistics nothing.JUST FIGURES

6. Let me reassure the customers of the affected banks and all the banks in general that there is no cause for alarm. They should continue to transact their business in the banks where their accounts are
domiciled as their exercise is meant to strengthen the banking industry and recapitalize the affected banks.

Thank you for your kind gesture sir,However if anything hppens to my money in intercontinental,I will sue you.
Please sir,can you also assure staffs that their services will not be compromised with?


Only banks that their CEO's went overboard in terms of cooperate governance, not following their own (individual banks) risk assessment were removed.

He never said anything bad about Soludo, but Soludo has some questions to answer. Why did he not notice that one of this 5 banks was technically insolvent and was using money from CBN loans and inter bank which it was getting at a regular basis to stay afloat?

First Bank of Nigeria was the first to be audited. (He audited the big banks first because of their importance to the economy)

Tier 2 is the type of capital (structure) the CBN used in putting money into the banks. In Tier 2, the CBN is not buying shares of the bank to raise capital. The CBN is just putting the money there so that banks can use upon approval by the CBN to meet obligation.

@ poster pls do u findings well before u make derogatory statements.

I need individual figures and facts of the affected banks.What are the names of the audit firms that audited these banks?and how were they able conclude the audit of those big organisations in few weeks?.Does it mean that after the second audit,if there would be any, that there is the possibilty of discovering more of the so called insolvent banks and consequently meaning that there would be more bailouts?.What if no investors come as have been seen with Nitel what would happen to government(OUR) money invested in these institutions?.please,@sagamite please dont respond to my question.

who is the CEO of Barclays bank?
Who is the CEO of HSBC?
WHO IS THE CEO of ABSA bank?
who is the CEO of ANZ bank?

This banks profits are probably more than the budget of Nigeria yet we dont have to be intimidated with their pictures and those of their cronies on the pages of newspapers.Banking is a conservative profession and when traders take over there is bound to be chaos. Honest businessmen cannot borrow 10m Naira from the banks but they have lent billions to their friends and family without due diligence. There is no need for tribalism if we are to sanitize and clean up Nigeria. we must use this opportunity to end the era of voodoo banking in Nigeria.

Vladmir 2:

@hammer07,this is a very political decision.Days ahead will only confirm our thoughts and fears.

@ vladmir2
what do you need facts anf figures for? I thought you had facts and figures before making the comment above.

i suggest that you check the facts and figures made available by SAnusi and published on the websites of Thisday (www.thisdayonline.com), NEXT (www.234next.com), SaharaReporters etc.

They don't lead to your conclusion above. Even if this is politically motivated, these CEOs have lost depositor's money and are not running the bank well.

Sagamite:

Thank you!

Retards like Beaf have the analytical deficiency to know a simple thing like this.

Sagamite:

Moronicity exemplified!

Sagamite:

Thank you, guys.

Don't mind the morons. It is when then they lose all their money in a Naija bank or their parents lose their life savings and pension that they would realise the importance and significance of doing this.

Then if the above happpens they will run here to say Nigeria is a failed state.

Typical Nigerians, know nothing about an issue but want to be the loudest and most boisterous.

Sagamite, I hereby rechristen u. ur name is now DAGGERMITE.

I hate d way u react and neva respond to people's opinions- name callings ITK phenomenon, etc. Everyone has d rigt to xpress oneself and views. If u feel different use logic and explanations not intimidation. U seem to strongly believe dat Naija people are not intellegent and thus, lack skills in analysis bt i know u're first a Nigerian b4 becoming a Briton or the Mr. Godorn Brown u now are. pls be guided. There shd be courtesy in all we do here. Allow others to be heard.