CBN Sacks CEOs And Management Of Five Banks - Business (10) - Nairaland
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Economic Crisis: Five Banks’ Profit Drop By N54bn / Five Banks Lose N312m To Cbn’s Sanctions / Cbn Sacks Ceos And Management Of Five Nigerian Banks (2) (3) (4)
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| Re: CBN Sacks CEOs And Management Of Five Banks by olabukola: 12:20am On Aug 15, 2009 |
This 400B injected to this banks when was it approved by National Assembly and where did it come from?. Who owns the bank now? still the same people or the new financier. |
| Re: CBN Sacks CEOs And Management Of Five Banks by Nobody: 12:21am On Aug 15, 2009 |
olabukola: My brother!!!! I tire oh!!!!! I no sabi say CBN Governor get power like this. No NASS approval |
| Re: CBN Sacks CEOs And Management Of Five Banks by babalawo(m): 12:30am On Aug 15, 2009 |
olabukola:if government funds are injected then We the people of Nigeria own these banks-proudly Nigerian!!!!! but very soon we will have to sell them like Nitel and transcorp!!!!!! madness everywhere |
| Re: CBN Sacks CEOs And Management Of Five Banks by Sunnybobo3(m): 12:36am On Aug 15, 2009 |
Facts are begining to emerge that Sanusi has a hidden agenda click the link below https://www.nairaland.com/nigeria/topic-310080.0.html |
| Re: CBN Sacks CEOs And Management Of Five Banks by kosovo(m): 12:38am On Aug 15, 2009 |
lol at NIGERIA! |
| Re: CBN Sacks CEOs And Management Of Five Banks by Beaf: 12:55am On Aug 15, 2009 |
Nigeria is in trouble. How are the owners of these banks going to react; these are big boys with big connections. |
| Re: CBN Sacks CEOs And Management Of Five Banks by qblaze(m): 1:20am On Aug 15, 2009 |
Maybe Yar'Adua will reverse this. It seems like a radical decision. |
| Re: CBN Sacks CEOs And Management Of Five Banks by Sagamite(m): 1:23am On Aug 15, 2009 |
olabukola: mikeansy: You must both be joking. Probably CBN should go and ask Redeem pastors for approval self first before they inject funds.  |
| Re: CBN Sacks CEOs And Management Of Five Banks by babyrl: 1:26am On Aug 15, 2009 |
olabukola: It does not need National Assembly's approval. The Central banks has money, they are just like Banks on their own. They loan to the other banks. If they need NASS's approval to give loans to the banks, then everyday or hour of the day NASS will be giving approval. According to Sanusi, this is a Tier 2 capital. That means it is just there to shore up the banks capital, its not used to buy shares of the company (they will need NASS approval for that). The shareholders still own the banks, the CBN did not buy any shares. |
| Re: CBN Sacks CEOs And Management Of Five Banks by otokx(m): 1:34am On Aug 15, 2009 |
There is going to be a mad rush at the banks beginning tomorrow, the stock exchange is going to be hit real hard next week and if Yar Adua wants to destroy the nation then let him reverse the decision. |
| Re: CBN Sacks CEOs And Management Of Five Banks by Beaf: 1:48am On Aug 15, 2009 |
Do you know this people were sacked by military decree from IBB's time?  Embarrassing! https://www.nairaland.com/nigeria/topic-310080.32.html#msg4354405 |
| Re: CBN Sacks CEOs And Management Of Five Banks by Robotnik: 2:17am On Aug 15, 2009 |
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! |
| Re: CBN Sacks CEOs And Management Of Five Banks by otokx(m): 2:31am On Aug 15, 2009 |
I don't see any northern agenda in this current matter. Its like when an armed robber is caught he will now say what of other armed robbers. I like the way in which Erastus took it; when his lobbying of OBJ and the sultan did not work (thank God for private jet) he quietly resigned hoping its a leave me i leave you matter. EFCC should be sent after him and all the others; their properties should be seized pending when the money is recovered. |
| Re: CBN Sacks CEOs And Management Of Five Banks by flyuche(m): 2:44am On Aug 15, 2009 |
what do you expect from these banks? i knew something like this was bound to happen when banks started employing engineers, doctors, and graduates who majored in yoruba language, literature, chemistry, botany, zoology etc  |
| Re: CBN Sacks CEOs And Management Of Five Banks by Robotnik: 3:01am On Aug 15, 2009 |
flyuche: sorry to say but that does not make sense, after all bill gates is a computer scientist who made it big in business, engineers contribute their expertise to the data center and other technical stuff, botany & zoology contribute ideas on which Agricultural sector the banks should invest in |
| Re: CBN Sacks CEOs And Management Of Five Banks by flyuche(m): 3:10am On Aug 15, 2009 |
Robotnik: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.  |
| Re: CBN Sacks CEOs And Management Of Five Banks by MrCrackles(m): 3:13am On Aug 15, 2009 |
flyuche: I wonder ooo!  |
| Re: CBN Sacks CEOs And Management Of Five Banks by Nobody: 3:16am On Aug 15, 2009 |
flyuche:Maybe he has marketing skills  |
| Re: CBN Sacks CEOs And Management Of Five Banks by Beaf: 3:19am On Aug 15, 2009 |
Robotnik: No, Bill Gates is not a "computer scientist who made it big in business". It is even better than you've put it. Bill Gates was a dropout law student who shamed computer scientists and made it big in business. flyuche:Funny question; see above. |
| Re: CBN Sacks CEOs And Management Of Five Banks by Kobojunkie: 3:33am On Aug 15, 2009 |
| Re: CBN Sacks CEOs And Management Of Five Banks by Beaf: 3:44am On Aug 15, 2009 |
Kobojunkie: Funny. Bill Gates graduated from Lakeside in 1973. He scored 1590 out of 1600 on the college SAT test, a feat of intellectual achievement that for several years he boasted about when introducing himself to new people. He enrolled at Harvard University in the fall, originally thinking of a career in law. But his freshman year saw him spend more of his time in the computer lab than in class. Gates did not really have a study regimen. Instead, he could get by on a few hours of sleep, cram for a test, and pass with a reasonable grade. http://www.biography.com/articles/Bill-Gates-9307520?part=1 |
| Re: CBN Sacks CEOs And Management Of Five Banks by flyuche(m): 3:52am On Aug 15, 2009 |
Beaf:we are talking about banking here not computer business. different ball game. |
| Re: CBN Sacks CEOs And Management Of Five Banks by hollandis(f): 4:04am On Aug 15, 2009 |
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? |
| Re: CBN Sacks CEOs And Management Of Five Banks by Nobody: 4:04am On Aug 15, 2009 |
welcome to the northernisation of nigeria |
| Re: CBN Sacks CEOs And Management Of Five Banks by babyrl: 4:29am On Aug 15, 2009 |
hollandis: 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. |
| Re: CBN Sacks CEOs And Management Of Five Banks by babyrl: 4:57am On Aug 15, 2009 |
Exit Soludo, Enter Sanusi President Umaru Musa Yar’Adua, worried by the reports he was getting that there was a deep-seated crisis in the banking sector, called former CBN governor, Prof. Chukwuma Soludo, to a meeting early this year. The president wanted to get a clear picture of the situation on the ground. Soludo assured him that there was no cause for alarm. Whatever appeared to be a crisis, he said, was not significant enough to upset the balance. He said instead of Nigerian banks needing a bail-out, it was in fact the banks that were in a position to bail out the economy, especially the public sector which had been hard hit by falling oil revenues. Unconvinced, Yar’Adua decided to work on a Plan B – that is, forgo the idea of nominating Soludo for a second five-year term as CBN governor. His argument, according to sources, was that if anything adverse happened to the banking sector, it could bring down the Nigerian economy. After doing a few checks and studying a few resumes, the President settled for Mr. Sanusi Lamido Sanusi, a risk management expert and Group Managing Director (GMD) of First Bank of Nigeria Plc. He gave him a clear mandate: “Go and clean up the system.” On assuming office two months ago, Sanusi, who was already conversant with the banking sector and had smelt fumes of distress in some players in the sector, sent examiners to the banks to know their true state of health. It turned out that at least four banks were permanently on life support through the expanded discount window which was created by Soludo for banks to address their liquidity problems. Sanusi decided to close the expanded window – but left the guaranteed interbank market open as an elixir for the banks. Again, he discovered that the same patients came for help and were placed on admission at the interbank “hospital”. On this basis, he chose to act swiftly because, as he would explain later, the threat of an epidemic was in the air. First, he wrote to Yar’Adua to inform him of the reports of the fitness test conducted on 10 of the 24 banks. (The remaining 14 are still being audited), then fe sought audience with the President. Last Thursday, Sanusi met with the President till late in the night, where all the issues and measures to be taken were tabled. Satisfied that Sanusi was acting within the laws – the CBN Act as well as the Banks and Other Financial Institutions Act (BOFIA) – Yar’Adua left the meeting at 10 p.m. and told Sanusi and his team to perfect their plans. The team swung into action, meeting till 4 a.m. yesterday morning while Yar’Adua left for Saudi Arabia where is he currently performing the lesser hajj and undergoing medical check-up. At 9 a.m. yesterday, the CBN board met, ahead of the special meeting of the Bankers’ Committee which was to have in attendance the bank CEOs and their chairmen. At 10.30 a.m., the meeting with the bank executives started. Sanusi spoke in general terms about the key findings contained in the reports of the examiners, especially as they related to bad loans, mismanagement and unethical practices. The meeting ended at noon and the CEOs and chairmen of the 10 banks that had been examined were told to stay back, while the other 14 left the premises of the CBN. For the five banks that passed the fitness test, they were each given letters by the CBN governor, detailing the findings as they relate to those banks. Each bank was told what to do about the findings, which were not too critical to the health of those banks – namely First Bank of Nigeria Plc, United Bank for Africa Plc, GTBank Plc, Diamond Bank Plc and Sterling Bank Plc. They were told how to make amends. Then the bombshell. The five banks that were found not to be fit – Intercontinental, FinBank, Oceanic, Afribank and Union – were the last to leave. Each bank’s CEO and chairman were invited to Sanusi’s office one by one and the governor delivered the news and the decision to remove the executives to them in person. As this was happening, four plain clothes security agents had been posted to the executive floor of the headquarters of each of the affected bank, with a detachment of mobile policemen guarding the premises to protect the banks’ properties as well as prevent them from carting away sensitive documents. With the exception of Erastus Akingbola, the CEO of Intercontinental, every CEO was in attendance. Shocked, they went back to their offices, briefed their staff and left for good. One of the CEOs was said to have broken down in tears on getting back to the office. Shock, disbelief, trauma… any word would do. http://www.thisdayonline.com/nview.php?id=151633 |
| Re: CBN Sacks CEOs And Management Of Five Banks by darqly(m): 5:02am On Aug 15, 2009 |
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? |
| Re: CBN Sacks CEOs And Management Of Five Banks by hollandis(f): 5:15am On Aug 15, 2009 |
babyrl: Which means the 5 banks tier capital base was weak and that of first bank was strong. It's just like saying university of jos is better than university of uyo because all graduates of Jos are employable. He really didn't say anything bad about Soludo? Saying something directly and indirectly does it not mean the same? babyrl:First bank had the best risk management? Please kindly inform Sanusi to give us comparative figures rather than theory |
| Re: CBN Sacks CEOs And Management Of Five Banks by babyrl: 5:20am On Aug 15, 2009 |
The Chickens Come Home to Roost Have you heard? A tidal wave just hit the banking sector. At the stroke of the pen, the career trajectory of top management executives of five banks took a southward curve. Mr Okey Nwosu, Managing Director of Finbank; Bartholomew Ebong, Managing Director, Union Bank; Sebastian Adigwe, Manging Director of Afribank; Mrs Cecelia Ibru, Managing Director, Oceanic Bank; and Erastus Akingbola, Managing Director of Intercontinental Bank have been tragically enlisted in the hall of bad bank managers. Between Akingbola and Nwosu it is difficult to judge who won the publicity-loving CEO campaign. Akingbola probably made a very public show of what has turned out to be his last outing as the managing director of Intercontinental Bank through his courtesy visit to the Sultan of Sokoto within the week. If he was in showbiz, his appetite for publicity would have been easily understood but he was in the banking, sector a very conservative sector. It is unclear what all the craze for publicity did to the bottom line of his bank. The picture of him with the Sultan adorned the front pages of most newspapers on Wednesday. Well, it was his last as managing director of his gasping bank. It is either he did not see the handwriting on the wall or chose to ignore it and perhaps, even pretend that all was well. His career and others like him came to a screeching halt on Friday. He will be leaving behind about N300 billion in negative shareholders’ fund, a large chunk of which was given to oil companies to finance importation of petroleum products and construction of depots. Unfortunately, the bulk of these loans have remained unpaid and unserviced and perhaps lost forever. The soft spoken Amazon of banking Mrs Madam Cecilia Ibru also led her bank to a negative shareholders’ fund of about N400 billion, most of which also went into financing of construction of depots, jetties and product imports. But interestingly, about 30 percent of her bank’s loan portfolio may have gone to her family’s business interests in aviation, hotels and publishing, among other concerns run by the Ibru family. While Akingbola is said to owe his bank billions of naira, Oceanic Bank and Intercontinental, it will be recalled, also contributed N1 billion each to Yar’Adua’s election campaign. Between the five banks whose CEOs got fired - Intercontinental Bank , Oceanic Bank, Afribank, Finbank and Union Bank – it is estimated that they lost N900 billion of shareholders fund. Soon after consolidation, banks began a very aggressive campaign on which bank is bigger? It was fought with all vigour and rigour. So began the campaign, “My Bank is Bigger than Yours”. All sorts of statistics were bandied around by many of the banks to claim superiority over others. From my bank is bigger than yours, the campaign steadily moved to the downstream oil sector, with the slogan, “My Depot is Bigger than Yours”. The competition here was no less fierce. Every available space on the Apapa axis was turned into the construction of tank farms. The runaway oil price fed a frenzy for big returns, and for a while that hope seem well placed. Accordingly, the oil nouveau riche lived the life of opulence and grandeur - private jets and exotic cars easily became their play toys while mansions of varied architecture dotted the neighborhood skyline. All were built with depositors’ money and flaunted menacingly at their faces. But suddenly, the bubble burst. Oil price crashed, and trouble started. To further compound this, the naira was dramatically devalued. Debt in billions of naira piled up. And soon the banks came knocking. However, the new Pharoah at the CBN who did not know Joseph and would take no prisoners sat in judgement. A price must be paid and nothing but the careers of those who breached public trust and abused their position was good enough. Buoyed by the tremendous successes they recorded in the various public offers they embarked on, banks lost risk management control and became reckless with investors’ and depositors’ money. According to an insider, the banks enticed many of the oil chiefs into buying their banks’ shares by giving them fat loans without collaterals during the stock market boom. When the market crashed, and values of shares plummeted, a gapping hole was dug in the books. The hole grew deeper and wider when oil prices also crashed and the naira shed weight, losing 20 per cent of its value. Suddenly the competition for my depot is bigger than yours tragically turned to my debt is bigger than yours. Who knows where it will go from here? http://www.thisdayonline.com/nview.php?id=151632 |
| Re: CBN Sacks CEOs And Management Of Five Banks by babyrl: 5:36am On Aug 15, 2009 |
hollandis: Read the article, it as numbers that you are looking for. http://www.thisdayonline.com/nview.php?id=151636 |
| Re: CBN Sacks CEOs And Management Of Five Banks by hollandis(f): 6:35am On Aug 15, 2009 |
babyrl: I have read thisday a 100times already.The only comparison is the "5 banks vs other banks". A lot of annoying theories.All I see is "one bank did that", the five banks did that",the 5 banks owed that",one particular did this",two banks said that" I need a detailed comparison of all ten banks concerned |
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