rasputinn:

@ TKB
Point of correction,Sanusi has not been a top dawg from his FBN days,rather he has been from his STB days,have you forgotten of his numerous brushes with Elumelu and Chika,while he was at STB,I posted something on the stock thread about how he had embarked upon asking Tony and co to provide for some billions purportedly extended to Adamac and co plus a lot of other things,if I can get the link I'll post it here.Even if Tony and Jim escaped this time around,I'm sure the sword of damocles is still hanging over their heads

Finally some level of sanity will be restored in the banking sector

Ras Baba
thank God people on ma wavelength don dey arrive
b4 today, i personally felt Tony was gonna be axed by Sanusi. Its surprising to see the Don himself missing on the list of the axed.
I still strongly feel Tony and Jim will hear from the bank soon except some top level meetings are held.

Ive been longing for when the CBN will be able to do what they are expected to do with no fear or favour.

As for those who are scared of the seemingly plunge in stock prices, hold no fear.
The polity and sector is still fairly stable and all will be well soon.

Invest in good companies and dont bother urself with the daily volatilities arising from occurences like this.

I Can believe that this is true,

CBN Sacks Five Bank CEOs, Injects N400b
• Akingbola forewarns directors of pending sack
By Ijeoma Nwogwugwu, 08.14.2009

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The Central Bank of Nigeria has moved to inject N400 billion into five banks in the country following the decision to remove the CEOs and executive directors of the affected banks. The affected institutions are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc, Finbank Plc and Afribank Plc.
The CEOs that have been sacked by the CBN are Erastus Akingbola (Intercontinental Bank); Okey Nwosu (Finbank); Sebastian Adigwe (Afribank); Mrs Cecelia Ibru (Oceanic Bank); and Bartholomew Ebong (Union Bank).
But in a pre-emptive move, Erastus Akingbola, MD/CEO of Intercontinental Bank who got wind of his impending removal called his executive directors to inform them of their certain sack by the CBN.
Akingbola was said to have rushed to Ota yesterday to elicit the support of former President Olusegun Obasanjo to intervene on his behalf and call President Umaru Yar’Adua to stop the CBN from carrying out the sack.
However, the CBN governor, Sanusi Lamido Sanusi, who made this decision known this morning at the Emergency Bankers’ Committee convened by the CBN in Lagos, explained exclusively to THISDAY that the decision was being taken to safeguard the financial sector from systemic collapse.
He said following the audit exercise conducted by CBN’s examiners it was discovered that five of the banks had accumulated margin loans of N500 billion, among other loans, that had gone bad and eroded their shareholders’ funds.
“Some of these banks are quite large institutions and they have been mismanaged, so we had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated.”
He said the CBN had obtained the approval of the President to inject N400 billion into the affected banks to shore up their tier 2 capital to minimum acceptable levels.
Sanusi added that the funds being injected by the CBN was just temporary and does not translate to the government taking a stake in the five banks, as the interim management will be given a period to recapitalise the affected institutions, following which the N400 billion will be paid back to the CBN.
On how the CBN will prevent a run on the banks and create panic in the economy, Sanusi said the CBN intends to make it clear that the money being injected by the reserve bank as well as the decision to guarantee interbank placement should allay depositors’ concerns.
The CBN, he stated, stands ready to ensure that no bank collapses in the country, but will encourage them to seek for funds to raise fresh capital and merge with stronger banks.
He said an interim management and board for the affected banks will be put in place to run the institutions until they are taken over by new management teams and owners.
For more details on the state of the five banks under the CBN hammer, get a copy of THISDAY, the Satuday Paper tomorrow[b][/b]


THIS DAY CONFIMED THIS

customers?
they sacked MDs not customers

ur money is still there

hehehehe

RUBRICS:

What will now be the fate of the customers?

Your money is safe, did you not read that the CBN injected N400bn into the banks and that shows they will inject more if needed.

The CEO's are not the banks, the banks will function without them, this is what the CBN is trying to restore into the banking system

No, but How come the CBN have the right to decide who gets to be CEO and who doesn't  for these Banks? Are they government controlled?

kokoA:

Are we saying Soludo failed? This country never seizes to amaze me.

I would not go that far. Soludo achieved a lot of positives as our CBN Governor but his actions , most times, showed he was an unabashed elitist. He saw nothing wrong with giving the CBN a direction that aided the rise of a few mega rich and mega influential banking and finance bosses with dubious principles that did not include the transparent and altruistic opening-up of our finance sector to ordinary Nigerians.

Soludo will/should probably be adjudged a success but we now need  a CBN Governor who will reposition our financial sector so that it can serve ordinary Nigerians instead of what obtained under Soludo (perhaps with his tacit endorsement ) that saw a few become incredibly rich with practices that lined their pockets but did nothing for ordinary Nigerians.

But will these guys be punished for their wrong doings?

Could this be the beginning of a free fall of banks that were built on false rocks.
Soludo and his Father {Obasanjo} has taken so much praises for building banks that cant fall.
I will be watching

Kobojunkie:

No, but How come the CBN has the right to decide who gets to be CEO and who doesn't  for these Banks? Are they government controlled?

The CBN has said the injection is not to buy shares of the company. It is called Tier 2 cash injection, countries like UAE did this to shore up the banks capital. It is different from buying shares of the Bank like the UK and US government did with some banks.


The CBN can decide to hire temporary MD's (administrators) to take over for a few months till the company is ready to have a shareholder's meeting to appoint new MD's and directors.

The administrators could be independent from the CBN, like when Lehman Brothers U.k branch went under govt. hired one of the top 3 audit companies to take charge till they (administrators) could find a buyer. The CBN can do something like that. I guess we have to wait for the press conference.

Sanusi never worked with Standard Trust Bank, he joined first Bank as a General Manager from UBA>

okay

At least we can say Yaradua is not that dull after all.

These banks are yet to get any stimulus from the FG.
Now the govt is firing the CEO of banks, soon, they will start to fire the husband of wives cos they are not managing the home well.
Lost/misplaced priority.

kokoA:

At least we can say Yaradua is not that dull after all.

What made him less dull?
I think this just show how stupid he is

Fhemmmy:

These banks are yet to get any stimulus from the FG.
Now the govt is firing the CEO of banks, soon, they will start to fire the husband of wives cos they are not managing the home well.
Lost/misplaced priority.

Thisday announced the CBN just put tier 2 capital injection of N400bn into the 5 banks.

Tanddy:

i think first bank is behinde this sack,is sanusi telling us that first bank is so perfect without stain.he sld check his side mirror very well.

This is a mallicious attack on First Bank. Can you prove that First Bank isn't doing well? Provide facts, we are intellectuals here.

naijatoday:

Thisday announced the CBN just put tier 2 capital injection of N400bn into the 5 banks.

If that is found to be true, then, the FG has the right to look into their book and make sure that the investment of the people {FG} is well used.

manie:

Sanusi never worked with Standard Trust Bank, he joined first Bank as a General Manager from UBA>

true

Fhemmmy:

What made him less dull?
I think this just show how stupid he is

Give it to the guy abeg. He appointed an expert risk manager at the rigth time. One gbosa for yaradua "GBOSA!"

Tmoni:

@babalawo, i agree 100% with your analysis,

only Diamond bank gained today on d exchange (banking sector), maybe d news did not get to the brokers in time

Monday will be mayhem

As usual, it is the inocent public at the brunt of this again,

Sometimes, i really dnt blame Americans who stuff out life of sum people,

true not a lotta brokers heard of it on the floor,
so wats the next step, fresh funds, fresh management, Erastus damn, no worries he'l just become a radio host on 102.3, lol.

kokoA:

Are we saying Soludo failed? This country never seizes to amaze me.

no, his intentions were good and im sure he didnt want a mass panic, now dat is inevitable, im sure someone will come out and put a spin to it pretty soon.

Fhemmmy:

What made him less dull?
I think this just show how stupid he is

NO CBN HAS AUTONOMY, SO BROS YARADUA DOESNT HAVE MUCH OF A SAY IN DIS.

@FineCat


God bless you jare. That's all I can say to you.


The rest people that just challenge whatever somebody says just because, I'm sorry for you.


Even the Bank of England was a commercial bank that was nationalized by the Government. Why do people ask these strange questions as to whether the CBN has the right or the power. Why. Why not read what you can and find out?

The CBN is a regulatory body and has absolutely no right to sack any CEO. That's unless u're trying to tell me that it owns controlling shares & sit on the boards of these banks. That will not make it impartial. Only the board of directors of these banks can do that.

ocelot2006:

The CBN is a regulatory body and has absolutely no right to sack any CEO. That's unless u're trying to tell me that it owns controlling shares & sit on the boards of these banks. That will not make it impartial. Only the board of directors of these banks can do that.

That's what I thought but then again,Nigeria is a lawless soceity,anybody can do anything and get away with it.
You can hire a police man to arrest your next door neighbour.Infact a traffic warden can arrest a motorist.
anything is possible in Nigeria

I'm not surprised at all.

Something happened in Oceanic in this July 09 ending. Many staff of Oceanic bank were riddled with shock. As usual, their phones buzzed with  transaction alert which usually heralds the crediting of their 2nd part of salaries for the month.  Unfortunately, many ended up with -ve balance as they discovered that some mysterious huge deductions were made and termed Oceanic Footbal Challenge or so.

Some low level staff had up to N45k deducted from their accounts.  I'm not an Oceanic staff.  I tried to find out the rationale and I was told that the money should represent the amount of unsold football challenge scratch cards given to staff.  Shockingly I gathered that many of these staff never received any football scratch let alone the issue of inability to sell.

This is GROSS emoyee abuse and totally UACCEPTABLE.  There is corruption in GOVT but there is corruption in Private coys too.  I  thought that Chief Mrs Ibru did not know about this because i felt she could have stopped it.

But with this CBN sack news, I guess I was wrong.

I guess there is more to what we dont know then, if that was a real news.

ocelot2006:

The CBN is a regulatory body and has absolutely no right to sack any CEO. That's unless u're trying to tell me that it owns controlling shares & sit on the boards of these banks. That will not make it impartial. Only the board of directors of these banks can do that.

The CBN has a right, read the BOFIA rules. It does not apply to Nigeria's Central Bank alone.

You have to realize banks are not just any institution they are Systematic to the economy of any country. If the CBN feels a bank poses systematic risk to the economy of a country it has a right to get rid of the CEO or board members. After a CEO or board member is appointed by shareholders, do you know, the CBN must approve?

This should not come as a surprise if you recall that as early as July 2009.  The Africa Report ran a story in it's business section which indicated that Nigerian banks after wowing the world with their recapitalisation exercise, had fallen into bad habits.

One cannot absolve Soludo of his inability or what some would even call his complicity in allowing a host of bad banking practices to go unchecked.

The Africa Report stated that some banks had serious governance issues requiring urgent attention, these following banks were  listed - Intercontinental bank, Oceanic bank , Union bank, Access bank, Ecobank, First city monument bank and Sterling bank.    The same report listed Afribank amongst others as having margin lending issues.

A lot of commentators criticised and rubbished the Africa Report as lacking substance , well ,   i believe they are now vindicated.  

I see Lamido  Sanusi as a real professional who will bring sanity and credibility to Nigeria's banking sector. Wish him well.

naijatoday:

The CBN has a right, read the rules.

You have to realize banks are not just any institution they are Systematic to the economy of any country. If the CBN feels a bank poses systematic risk to the economy of a country it has a right to get rid of the CEO or board members. After a CEO or board member is appointed by shareholders, do you know, the CBN must approve?

That is very true, but as the watch dog of the banks, they have no right to get rid of anyone.
They ought to make a report and forward it to those that has the power to do such and recommend that the CEO involved be removed.

manie:

Sanusi never worked with Standard Trust Bank, he joined first Bank as a General Manager from UBA>

My major bad,I keep confusing UBA for STB(that's how much I believe they've changed),I'll edit the earlier post accordingly.Thanks
All the same,Sanusi is the Cicero,nice move

naijatoday:

The CBN has a right, read the BOFIA rules. It does not apply to Nigeria's Central Bank alone.

You have to realize banks are not just any institution they are Systematic to the economy of any country. If the CBN feels a bank poses systematic risk to the economy of a country it has a right to get rid of the CEO or board members. After a CEO or board member is appointed by shareholders, do you know, the CBN must approve?

Can you possible post for us the particular piece from this BOFIA rules that allows this?

Fhemmmy:

I guess there is more to what we dont know then, if that was a real news.

Believe me there is more, stay tuned.

ocelot2006:

The CBN is a regulatory body and has absolutely no right to sack any CEO. That's unless u're trying to tell me that it owns controlling shares & sit on the boards of these banks. That will not make it impartial. Only the board of directors of these banks can do that.

Says who?? The cbn has every right to sack any bank CEO. Same with the US Govt. they removed Bank of America president, Goldman sachs, AIG etc etc. The CBN is the ultimate bank regulatory body.