You can not know every thing about all things in life!!!!!!!!!!people should refrain from passing comment based on sentiment and not based on knowledge.

CBN has all the right to sack MDs because they are keeping other peoples fund and not their shjareholders fund. It is clearly stated in BOFIA Act -- the bible and Quran of all banks. It is one of the regulatory functions of cbn.

Fhemmmy:

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.

Those that have the power are the directors. What if the directors are invloved too. How controls this directors and CEO's? CBN.

@ kobo. I do not know were I can get the BOFIA rule bookfor you. You can go the CBN's website or Google.

naijatoday:

Those that have the power are the directors. What if the directors are invloved too. How controls this directors and CEO's? CBN.

@ kobo. I do not know were I can get the BOFIA rule bookfor you. You can go the CBN's website or Google.

It cant be just the CEO, the board of Ds have power as well.

Finecat:

Believe me there is more, stay tuned.


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.

Thank You.

superstar1:

You can not know every thing about all things in life!!!!!!!!!!people should refrain from passing comment based on sentiment and not based on knowledge.

CBN has all the right to sack MDs because they are keeping other peoples fund and not their shjareholders fund. It is clearly stated in BOFIA Act -- the bible and Quran of all banks. It is one of the regulatory functions of cbn.

As the apex bank,wht's its major function?
who's next!!

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.

hehehehe
so much for our learned folks
so my brother, what is ur own understanding of what a CBN (regulatory body) can do in a mixed economy like Nigeria?

The directorate of Banking Supervision in CBN wields a big stick and moreso when the apex bank is doling out a huge sum to stabilise the affected banks.
Since the banks will be receptive of the "new money" then he who plays the piper dictates the tune

its as simple as that. Dont make simple things complex

kokoA:

But will these guys be punished for their wrong doings?

That's the 400 billion naira question which I guess we'll get to know as the drama unfolds still

The CBN has every rigth to sack irresponsible bank CEOs. These guy manage Nigerian capital not their personal monies ok? You might want to make some researches before you post. Thanks.

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?

Precisely !!! The Central bank , as well as being the bank of banks, is the nations bank. It is empowered to remove anyone or anything that undermines the integrity of a nations banking sector .

In time , when more 'classified' info become public, it will be obvious that these guys got off lightly in a nation that never jails its rich and powerful citizens. These guys are all Nigerian Bernard Madoffs and they should be prosecuted and jailed .

Fhemmmy:

It cant be just the CEO, the board of Ds have power as well.

What?

I said the directors have the power too and the CBN has the power over both the CEO and directors.

According to NEXT newspaper


Lai Alabi appointed acting CEO of Intercontinental Bank

superstar1:

You can not know every thing about all things in life!!!!!!!!!!people should refrain from passing comment based on sentiment and not based on knowledge.

CBN has all the right to sack MDs because they are keeping other peoples fund and not their shjareholders fund. It is clearly stated in BOFIA Act -- the bible and Quran of all banks. It is one of the regulatory functions of cbn.

thank you my bro
someone even said its because Nigeria is a lawless society
i come begin dey laff in itsekiri

CBN will sack from now till thy kingdom come if you fck up

The CBN governor should not have the right to sack CEO of commercial banks, he/she should be able to recommend to the Board of Directors actions that are necessary to protec the banks and if the CEOs actions are criminal, to have EFCC look into. What are the roles of the Board of Directors of these banks?

Abegi when they go suspend the shares on naij's exchange?
Sell alert

safariman:

The CBN governor should not have the right to sack CEO of commercial banks, he/she should be able to recommend to the Board of Directors actions that are necessary to protec the banks and if the CEOs actions are criminal, to have EFCC look into. What are the roles of the Board of Directors of these banks?

Chairman, CBN has the right to even dissolve the board of directors of failing banks ok?

It seems to me that the issue is not weather the CBN has the right to legally sack CEOs of banks.  Fact remains that, the CBN has no authority to sack the CEO of any corporation and these CEOs are typically accountable only the board of directors and shareholders.

What is happenening here is a takeover of these named banks by the CBN.  The banks will be otherwise forced into bankrupcy because of capitalization problems. Given the banks' high level of bad loans that are unrecoverable, N400billion at least,  the CBN had to take over these banks and provide the necessary capital to keep the banks afloat.  Since CBN now controls the banks (as a condition for injecting N400b), they become legally empowered to fire the CEOs.

If the CBN had not injected the said funds, these banks would have had to go bankrupt. Imagine what that will do to the economy.

This is the kind of bailout which took place in the US during their savings & loans scandal.

May Allah in his infinite mercies bail Nigeria out of the strangle hold of the thieving elite.

Cheers,
J

They should have announced the "take over" of these banks and then, replace the CEOs

safariman:

They should have announced the "take over" of these banks and then, replace the CEOs

They did not want to cause panic and a disruptive run on the banks.

Nobody cares about what they do with their shareholders fund. What CBN will hold u responsible for --which could mean sack-- is depositors fund. The money loaned out does not belong to the bank, it belongs to nigerians which they should be held accountable for.

Chikena!!!!!!!!!!

@naijatoday, I am sorry but it still does not add up. The reason the US government is able to interfere in the running of banks TODAY is because of the events of recent years. BOFIA has been around since the early 90's if not earlier. Are you saying the Nigerian government has had this power over banks since then or something?

It seems to me that the issue is not weather the CBN has the right to legally sack CEOs of banks.  Fact remains that, the CBN has no authority to sack the CEO of any corporation and these CEOs are typically accountable only the board of directors and shareholders.

What is happenening here is a takeover of these named banks by the CBN.  The banks will be otherwise forced into bankrupcy because of capitalization problems. Given the banks' high level of bad loans that are unrecoverable, N400billion at least,  the CBN had to take over these banks and provide the necessary capital to keep the banks afloat.  Since CBN now controls the banks (as a condition for injecting N400b), they become legally empowered to fire the CEOs.[/b]If the CBN had not injected the said funds, these banks would have had to go bankrupt. Imagine what that will do to the economy.

This is the kind of bailout which took place in the US during their savings & loans scandal.

May Allah in his infinite mercies bail Nigeria out of the strangle hold of the thieving elite.

Cheers,

[b]MINT!!!!!!!!!!!!
You dont inject 400billion into corrupt  and incompetent hands.

People, People, Banks are not just any company listed on the stock exchange.

The CBN has a right to fire a CEO, Director on the Board or Chairman. If they have evidence to show the have put the economy of the country at risk.

Who approve thos Directors, CEO,Chairman and Executives? The shareholders approve but the CBN has the final say. If the CBN says NO (with a valid reason), then the shareholders must go back and pick another person.

The CBN is injecting Tier 2 capital (it means putting capital into the banks without buying shares of the company) into the 5 banks.

Omg!i smell panic in the air.Cecilia Ibru,unbelievable?What are her crimes?Omg!

Jenju is the "correctest" man in here

naijatoday:

People, People, Banks are not just any company listed on the stock exchange.

The CBN has a right to fire a CEO, Director on the Board or Chairman. If they have evidence to show the have put the economy of the country at risk.

Who approve thos Directors, CEO,Chairman and Executives? The shareholders approve but the CBN has the final say. If the CBN says NO (with a valid reason), then the shareholders must go back and pick another person.

The CBN is injecting Tier 2 capital (it means putting capital into the banks without buying shares of the company) into the 5 banks.

superstar1:

Nobody cares about what they do with their shareholders fund. What CBN will hold u responsible for --which could mean sack-- is depositors fund. The money loaned out does not belong to the bank, it belongs to nigerians which they should be held accountable for.

Chikena!!!!!!!!!!

Mint!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
anytime i see you on this blog, ill be reading cos ure always too fast to post ma tots
u speak ma mind everytime

If the CBN is giving these distressed banks money to the tune of 400 bn naira, it wise for them to have people in charge that they can trust!

Looking ahead from here, the next set of  rations questions/steps would be to determine the role of the these CEOs and directors of the banks in eroding the share holders funds. Have they acted in an improper and irresponsible manner with moneys entrusted with them? What were the processes for awarding loans to individuals and companies? How did the CEOs and board of directors benefit from these? Or did they not?

The EFCC should be start the investigation of these super bankers. I have a feeling there would be massive capital movements by the sacked CEOs if quick actions are not taken,

9ja banks problems started when they started jostling for the title of the biggest bank in nigeria, the most profitable bank in nigeria, Aaaa Fitch Rating and all those thrash that appeal to the unsuspecting public.

In Sanusi press conference just concluded, he said this is 5 out of 10 banks that has been audited in the last coulple of weeks. What i can infer is that, more is to come after the completion of the auditing of the remaining 14 banks thereabout.

1st half of next year will definately be a period of Mergers & Acquisition!!!!!!!!!!!!!!!!

May God save us from this yahoo executives, forging financial reports to cun Nigerians of their hard earned money.Now I know where the yahoo boys are learning their lessons from,I hope EFCC would rise to the occassion to stop this corporate thieves.

tkb417:

MINT!!!!!!!!!!!!
You dont inject 400billion into corrupt  and incompetent hands.

You are absolutely correct. That is why the CEOs and executive directors of the affected banks were fired by CBN.

Cheers,
J