Mr KnowAll, you goofed in the point that Soludo may have failed because he was an Economist and not a Banker. Soludo has not failed. Policy is a continuum

In the first place, Central Banks/Federal Reserve/Bank of England governors all over the world are not mostly economist. And more noteworthy, they are principally PHD Economist because the economy is not just about banks but more about complex macro-economy.  Carry out a research on countries such as USA, England, Japan and other countries. The present US FED Chairman is a Professor of Economics.

In these countries, Sanusi will not  near CBN mantle of leadership becomes he lack the academic and professional pedigree.

Sanusi and Soludo will surely have different management style. Sanusi may decide to sack an entire board because they over-leveraged their portfolio while Soludo may decide to prop them up to a degree. It's all about management policy exclusive to CBN head based on his interpretation of macroeconomic variables. I support his decision because Nigerian Banks are a disgrace to their profession and to the country. But we must remember the MD's and their Board did not commit any crime.

Soludo is still  the reference point of success in the history of CBN governorship. Sanusi may equal or surpass it. It is a verdict for the future - not present and will not be based on a single policy decision.

I did not say Soludo failed if you care to check the subject title I said "  Was Soludo a failure with a quetsion ?" , my own verdict is yes he failed, but you might beg to differ which is perfectly fine by me it is a debate not a fact.

So Alan Greespan failed because he was replaced by Berneke? How easy it is to exposure the ethno-tribal undertone of any topic in Nigeria.

If you don't understand the characteristics of free market economy and banking which was what OBJ and Soludo envisioned, just shut your mouth, because there is no reason under the sun to compare either OBJ with Yar'dua, or Soludo with Sanusi.

Private and public economies are bound to affected by corruption, but time and time again, we have seen that the magnitude of corruption in private economies are much less than their public counterparts.

In public or government runs companies, the person who comes out to arrest criminals today, eventually becomes the bigger thief tomorrow.

Just look at World history and our national record since after independence.

Asking whether Soludo was a failure simply because Sanusi wants to nationalize the nations private banks is akin to IBB overthrowing Buhari because of "gross abuse of the law" and turned out to be the 'smartest criminal president' we ever had.



Your views have been taken note of, I dont thing you will be saying all these crap if you have N5million in Inter Continental and you want to withdraw it only to be declined, we have seen it happen in Nigeria not once or twice it has in fact become a perenial problem, that rut has to stop and somebody should stand up against such flagrant abuse of power by our bankers.

KnowAll:

Whether he was there for 5 years or 8 years is irrelevant, if the new Governor can detect the rot in the system within 3 months, Soludo spending one more day in office would have be an unnecessary waste in all ready scarce resources, he should at least have had the decency to quit rather than waste the FG's money warming the seat and doing nothing about protecting the Share Holders equity. People like us see our portfolio drop from N2.8 million 18 ymonths ago to less than N300,000.00 today. Is that creating wealth or ceating poverty.

Your lack of basic World economic news is not only nauseating, but actually troubling, because ignorant people like you are capable of making Nigeria's bad economic situation worse.

So your Nigerian stock equity dropped from N2.8million to 0.3million today--thanks to Soludo? I guess we would also thank him for the drop NYSE, FTE, DJA, and other World burse that also lost equity. Even if nobody has ever told you that the World economy is connected, you should have at least done some basic research before putting your stupidity on paper.

Your lack of basic World economic news is not only nauseating, but actually troubling, because ignorant people like you are capable of making Nigeria's bad economic situation worse.

So your Nigerian stock equity dropped from N2.8million to 0.3million today--thanks to Soludo? I guess we would also thank him for the drop NYSE, FTE, DJA, and other World burse that also lost equity. Even if nobody has ever told you that the World economy is connected, you should have at least done some basic research before putting your stupidity on paper


We thank Souldo for the dire state of Inter-Continental's Account, and I para-phrase the CBN's word " one of the banks is technically Insolvent" those are not my word but the new CBN boss exact word. So direct your anger at him and your Soludo that let all those unethical deals to prosper during his tenure.

KnowAll:

Your views have been taken note of, I dont thing you will be saying all these crap if you have N5million in Inter Continental and you want to withdraw it only to be declined, we have seen it happen in Nigeria not once or twice it has in fact become a perenial problem, that rut has to stop and somebody should stand up against such flagrant abuse of power by our bankers.

Are you saying the bank was about to fail? That's news even to people who own these banks.
Forcefully putting 70billion in a bank with 1.3 trillion asset, and taking it over in the name of rescuing customers is another daylight armed robbery possible only in Nigeria.

Economist all over the World are asking: Did he warm them? Did he give them an opportunity to re-capitalize. Recapitalize they must do, because eventually, that govt 70billiion has to be paid back, and the customer gains nothing.

Do you understand it?

These are private banks, our government needs to supervise, not take over these banks. Show me one government run company that's doing well? NITEL, PHCN, Nigeria Airways, NNPC, the list goes on.
Now you want to add Oceanic, Intercontinental, Union banks-----God forbid

KnowAll:


Whether he was there for 5 years or 8 years is irrelevant, if the new Governor can detect the rot in the system within 3 months, Soludo spending one more day in office would have be an unnecessary waste in all ready scarce resources, he should at least have had the decency to quit rather than waste the FG's money warming the seat and doing nothing about protecting the Share Holders equity. People like us see our portfolio drop from N2.8 million 18 ymonths ago to less than N300,000.00 today. Is that creating wealth or ceating poverty.

The problem with you is that you are an illiterate, from your post, it is obvious you dont know any thing about nigerian affairs, public service, banking, economics and administration,

In three months of office, sanusi sacking four bank MDs he competed against to become CBN governor and Soludo giving you a viable glabal banking system which sheltered you from a devastating economic crunches that could have crippled you forever, which one serves you better ?

If you dont know how politcs works, i suggest you better sit down study and learn so that you can understnt public issues better than coming to nairaland to tell stories you culled from IGOGORO joint.

KnowAll:

Your views have been taken note of, I dont thing you will be saying all these crap if you have N5million in Inter Continental and you want to withdraw it only to be declined, we have seen it happen in Nigeria not once or twice it has in fact become a perenial problem, that rut has to stop and somebody should stand up against such flagrant abuse of power by our bankers.

Scapegoatting Soludo doesn't help anybody. A bank crash affects consumer confidence, Sanusi's actions haven't improved confidence, what he should be saying is that the government will underwite the first 10 million naira of all deposits in the event of a crash.

Sanusi has acted in a crooked, underhand and illegal manner. The plan is to transfer ownership of these banks to regions who have in the past complained about being marginalised in the banking sector. But it will not work, the Nigerian people are knowledgeable and will meet this head on.

Are you saying the bank was about to fail? That's news even to people who own these banks.
Forcefully putting 70billion in a bank with 1.3 trillion asset, and taking it over in the name of rescuing customers is another daylight armed robbery possible only in Nigeria.

For the Governor to use the word " technical Insolvent" is not a word people throw around willy neely, it is serious matter. The Governor is one step from saying it has actually hit a boulder, courtesy and drastic dash for their cash by customer prevented  the Governor from actually declaring bankruptcy, if the aggreived banks beleive they have a case they should seek redress in the courts.

The poster either has no understanding of what the CBN governor’s role in the financial system is, or he is just a dimwit. Number one, as someone pointed out, being CBN governor requires not just an understanding of core banking. The individual will need to understand how core banking feeds into the larger economy. Thus, an individual with a solid academic background, usually in Economics, is a no-brainer.

Secondly, no doubt Soludo was an arsehole in certain regards. Still, I doubt that anybody could have envisaged how beneficial the consolidation exercise would end up being to the Nigerian financial system. Nobody can take that from him. He handled the business on that front.

Now, my own beef with the whole 9ja banking thing is the absence of corporate governance. In the West, woe betide the CEO who would cook the books and declare phantom profits the way Nigerian CEOs do. The government needs to tighten up the regulatory framework fundamentally. If it became a criminal offence to mislead the public as these bastards do – declaring bogus profits, insisting their banks are healthy when even Stevie Wonder can see that sh*t ain’t right – these stupid MDs and CEOs would tighten up and start dealing with the public forthrightly. Where the regulatory mechanism is air-tight, and CEOs have the fear of Kirikiri in mind, they’d do their jobs properly.

I think the poster was unfair to soludo, the same way people have been unfair to soludo predecessor. Progress is a gradual thing and it is impossible for anyone to achieve instantaneou success. i personally feel the last three cbn governors have tried.
joseph sanusi raised the capital base to 2b and encouraged the one stop banking policy where banks diversified from core retail banking. This helped to build multiple income stream for the banks.
soludo raised the capital base to 25b and that allowed the banks to have funds to fund big businesses and therefore take risk. i believe that if soludo was still in charge, he would have cleaned up the system. you will expect that raising the capital base from 2b to 25b will create this sort of  problems especially when these ceos increased their capital base to 100s of billions.
sanusi is cleaning up the system his own way and i am sure he will encounter problems throughout his tenure and after his tenure expires. That would not make him a failure.

I think soludo has strong supporters among people that knew nothing about cbn b4 his tenure and these people went about bashing formal cbn governors. The truth is that soludo has done well and nobody can take dat from him.

KnowAll:

For the Governor to use the word " technical Insolvent" is not a word people throw around willy neely, it is serious matter. The Governor is one step from saying it has actually hit a boulder, courtesy and drastic dash for their cash by customer prevented the Governor from actually declaring bankruptcy, if the aggreived banks beleive they have a case they should seek redress in the courts.

Boy, don't let big words spin your head.
Oceanic bank passed CBN audit a few days before this news.
So, how come?

naijaking1:

Boy, don't let big words spin your head.
Oceanic bank passed CBN audit a few days before this news.
So, how come?

If that is true and you add the fact that Sanusi had to reach for a military decree to pull this thing off; we are in for another ugly show.

SapeleGuy:

They need to challenge this decision in court.

Certainly, you are smoking crack.

It's blindingly apparent, by now, that Nigerian banks are in a bad state. There is no liquidity. While they may have substantial assets, how does that help the mechanics of the financial system function as normal? Se na asset you go lend business owner? Se na asset business owner go take meet payroll? Nigerians go just open mouth and talk nonsense.

Perhaps the CBN governor should have referred to the banks as “functionally insolvent” as opposed to “technically”, but there can be no doubt that these monkeys are not in a good way. They’ve been overexposed, their credit risk management mechanisms are practically non-existent, they declare phantom profits in a world-wide recession, they have yet to diversify fully from core-retail banking, corporate governance is trash, they lie to the public, their books are saddled with toxic loans and bad debt, etc. In short, Nigeria banking is in the toilet.

You must be on hard drugs if you think otherwise.

Beaf:

If that is true and you add the fact that Sanusi had to reach for a military decree to pull this thing off; we are in for another ugly show.

It's true, that was one reason Mrs Ibru stated that her removal was illegal.
I guess some Hausa people needs ownership of the bank more than the people who actually started it.

All the Nigerians saying there is a Northern agenda in this situation are just stupid. And I say that as a Yoruba man. As of yet, there is no evidence to that effect. And as Nigerian banks are in a shitty state, I think you motherfuckers should just sit back and let the man do his bloody job. Of course, it goes without saying that people should be vigilant. But to say that the banks are in a good state is rubbish.

It's the CBN governor's duty to protect the financial mechanism from systemic risk. These stupid banks pose that. It's within the circumference of his role to get rid of them. Se finis.

lonewolf:

Certainly, you are smoking crack.

It's blindingly apparent, by now, that Nigerian banks are in a bad state. There is no liquidity. While they may have substantial assets, how does that help the mechanics of the financial system function as normal? Se na asset you go lend business owner? Se na asset business owner go take meet payroll? Nigerians go just open mouth and talk nonsense.

Perhaps the CBN governor should have referred to the banks as “functionally insolvent” as opposed to “technically”, but there can be no doubt that these monkeys are not in a good way. They’ve been overexposed, their credit risk management mechanisms are practically non-existent, they declare phantom profits in a world-wide recession, they have yet to diversify fully from core-retail banking, corporate governance is trash, they lie to the public, their books are saddled with toxic loans and bad debt, etc. In short, Nigeria banking is in the toilet.

You must be on hard drugs if you think otherwise.

You maybe the one on hard drugs here, for all I know and read from reliable Nigerian newspapers, banks such as Oceanic just recently passed their CBN audit, so before you join this stupid talk about insolvency, please check with people in the know.

Igbos say that if you pull off a tick from a dog without showing it him, the dog would think you were just pinching him out of animosity

So, show me an insolvent bank, show me the hurried need to inject a paltry 400billion into private banks so that you can forcefully take them over in the name of the federal government of Yar'dua.

These Nigerians are quick to attribute everything to tribe. You lot never let fact get in the way of your rants. Number 1: Nigerian banks are well known for declaring phantom figures. They declare numbers that defy calculus, so anybody who puts his/her fate in those figures clearly has no understanding as to how his/her fatherland operates. Number 2: You can pass a CBN audit when the basis of the audit is the declaration you’ve made.

Send their spreadsheets to forensic accountants and you’ll see the illusion. This is what Sanusi has seen. This is the reality. You lot can tap away from the comfort of your bedrooms and moan about the big, bad Hausa agenda, but the fact remains: your banks are arse, and they need bailing out. Anybody ever wondered why they run after deposits as forcefully as they do?

I think a good number of contributors on this thread suffer from either plain ignorance, ethnic biogotry, stupidity or a combination of those! I don't see an ethnic dimension to the issue at hand; while the 'bail-out' given to the banks would wittle down the equity of the owner-managers, if they can bring in new investors or raise additional funding to the tune of the bail-out, the CBN has promised to revert management to them. How they want to do that, I do not know. What I see happening is further consolidation within the sector. Spring Bank would have topped that list if not with the take-over by PHB.

On some banks passing the CBN audit: what does passing an audit mean? Let me help: If I audit you and you "pass", it simply means that the information provided to me in your (recent) report to me are a true reflection of fact! The issue at hand goes beyond that: what Mrs Ibru did not mention is the fact that Oceanic like all the other banks did not provision for all of their bad loans as required by the CBN (this is why their so-called profits were declared as phantom or paper profits in the first place). While Oceanic passed the CBN audit, providing for the bad loans meant a negative N42 billion in bad loans hitting their balance sheet aside other issues that were initially treated as off-balance sheet. Her cry, while painful even for me, is like a drowning man clutching to a floating straw.

Soludo was the best CBN governor we could have at the time he was governor, and he did turn around the banking sector immensely. Methinks he did compromise towards the end of his tenure by adopting a softer stance towards the banks as he had built close relationships with the bank CEOs. Consequently, rather than bringing down the hammer on the banks, he elected instead to pad them up through the Expanded Discount Window (EDW) with the hope that they'll recover quickly. I do not call that failure (my definition) looking at the quantum of achievement he has behind his name. If Soludo were still the governor, do you think he would wait for the banks to go under? As an advisor in financial services, I was aware Soludo was driving further consolidation in the industry albeit behind the scenes (talk about Spring Bank, Wema);

Sanusi's own approach is to drive an open and forceful consolidation in the industry (mark my words). And I think he is right as well. In terms of what is being achieved, it is no different from what Soludo was driving only that Sanusi instead chose a rather confrontational approach to it and let us hope that this does not erode the confidence of the banking public in the Nigerian banking industry. We should not move away from the facts and the new governor has made that clear, the capital base of the banks have been eroded and they need to capitalise. That is plain English for "banks should bring in new investors" but where is the money? The ultimate objective is for the banks to further consolidate and Sanusi had made that clear before he became governor that we shouldn't have more than 15 banks in Nigeria; remember Soludo's own consolidation programme had the same objective. What I see clearly is a difference in approach to dealing with this issue.

The banks really have messy risk management frameworks and corporate governance frameworks they do not adhere to. Let's remember that Soludo drove all the banks to put in place risk management frameworks including mandating that each bank had an executive director overseeing risk management (pls, check these facts); or how else did Sanusi end up as ED, Risk Management in First Bank in the very first place. I see what has happened as a process within a continuum. While Central/Reserve Bank governors are usually top notch economists but that does not mean we cannot have a governor who is not an economist at Phd level. Having worked with the CBN, I know that there are hoards of senior economists within the staff and board but Sanusi's background as a risk management professional will no doubt serve our needs at this time. I am particularly impressed with the fact that he is able to face up the issue at hand and stand up to the "sacred cows" in the banking industry.

Volunteer:

I think a good number of contributors on this thread suffer from either plain ignorance, ethnic biogotry, stupidity or a combination of those! I don't see an ethnic dimension to the issue at hand; while the 'bail-out' given to the banks would wittle down the equity of the owner-managers, if they can bring in new investors or raise additional funding to,

I could not have said it better if I tried. You break it down so succintly.

This should clear things up for the morons shouting tribalism: people are entitled to their own opinion not their own facts!

^Why is it that you govt pitbulls think that being rude and barbaric makes you seem clever? You just look foolish when people are logical and all you can do be childish and immature.

I will not even waste my time responding to this person called "Knowall" but I have to point out that he is a complete idiot and an example of why Nigeria is in turmoil today.
Thanx

the truth is that the past administration of obj was unable to put any institution into place rather he placed individuals in areas of institutions.
efcc, fct, banks, police, judiciary, excutive, elections are some of the areas where democratic govts establish institutions on which the economy and political systems of a country depends but that was not the case in nigeria.
nigeria since 1999 has been under a particular party and as such shld enjoy and display the benefits of 10 yrs but that is not the case here because individuals play strictly to the tone of that who appoints them specifically for the momentary political objectives.
the sins of obj will continue to hunt us until we get someone with a belief on institutionalization of this useless political arrows designed to bring down opositions.
i have never believed that our banks are stable because if they are, they will not be producers of official prostitutes in the name of marketers who do anything possible to meet up with banks inordinate targets.

Nigeria is a tribal country,before soludo how many banks do we have,and how many of them are healthy,soludo did magic to the banking sector,if other ministers,governors,etc did one-tenth of what soludo did in their various ministries,states,etc,then we will not be here,we would have gone far,do u know that banks started givig loans to civil servants during the advent of soludo.

@know all
pls leave soludo alone,he has done his bit and he did it so well.Soludo is a first class material and a prof. of economics b4 40.he was named as one of the best top ten economists in the world.

Well as for sanusi ,time will tell.

Volunteer:

I think a good number of contributors on this thread suffer from either plain ignorance, ethnic biogotry, stupidity or a combination of those! I don't see an ethnic dimension to the issue at hand; while the 'bail-out' given to the banks would wittle down the equity of the owner-managers, if they can bring in new investors or raise additional funding to the tune of the bail-out, the CBN has promised to revert management to them. How they want to do that, I do not know. What I see happening is further consolidation within the sector. Spring Bank would have topped that list if not with the take-over by PHB.

On some banks passing the CBN audit: what does passing an audit mean? Let me help: If I audit you and you "pass", it simply means that the information provided to me in your (recent) report to me are a true reflection of fact! The issue at hand goes beyond that: what Mrs Ibru did not mention is the fact that Oceanic like all the other banks did not provision for all of their bad loans as required by the CBN (this is why their so-called profits were declared as phantom or paper profits in the first place). While Oceanic passed the CBN audit, providing for the bad loans meant a negative N42 billion in bad loans hitting their balance sheet aside other issues that were initially treated as off-balance sheet. Her cry, while painful even for me, is like a drowning man clutching to a floating straw.

Soludo was the best CBN governor we could have at the time he was governor, and he did turn around the banking sector immensely. Methinks he did compromise towards the end of his tenure by adopting a softer stance towards the banks as he had built close relationships with the bank CEOs. Consequently, rather than bringing down the hammer on the banks, he elected instead to pad them up through the Expanded Discount Window (EDW) with the hope that they'll recover quickly. I do not call that failure (my definition) looking at the quantum of achievement he has behind his name. If Soludo were still the governor, do you think he would wait for the banks to go under? As an advisor in financial services, I was aware Soludo was driving further consolidation in the industry albeit behind the scenes (talk about Spring Bank, Wema);

Sanusi's own approach is to drive an open and forceful consolidation in the industry (mark my words). And I think he is right as well. In terms of what is being achieved, it is no different from what Soludo was driving only that Sanusi instead chose a rather confrontational approach to it and let us hope that this does not erode the confidence of the banking public in the Nigerian banking industry. We should not move away from the facts and the new governor has made that clear, the capital base of the banks have been eroded and they need to capitalise. That is plain English for "banks should bring in new investors" but where is the money? The ultimate objective is for the banks to further consolidate and Sanusi had made that clear before he became governor that we shouldn't have more than 15 banks in Nigeria; remember Soludo's own consolidation programme had the same objective. What I see clearly is a difference in approach to dealing with this issue.

The banks really have messy risk management frameworks and corporate governance frameworks they do not adhere to. Let's remember that Soludo drove all the banks to put in place risk management frameworks including mandating that each bank had an executive director overseeing risk management (pls, check these facts); or how else did Sanusi end up as ED, Risk Management in First Bank in the very first place. I see what has happened as a process within a continuum. While Central/Reserve Bank governors are usually top notch economists but that does not mean we cannot have a governor who is not an economist at Phd level. Having worked with the CBN, I know that there are hoards of senior economists within the staff and board but Sanusi's background as a risk management professional will no doubt serve our needs at this time. I am particularly impressed with the fact that he is able to face up the issue at hand and stand up to the "sacred cows" in the banking industry.

Thanks for your 'expert opinion' about banking in Nigeria.

Let's get one thing straight, I, like majority of naija people support and advocate for reliable banking system. Nobody wants to have failed banks in Nigeria.

Note my tick on the dog analogy above, if the bankers, their CEO, and board of directors dispute the solvency of their institution as the reason for government take over, then it must raise the red flag in every well meaning Nigerian.

Do you really want to fill most banking board of directors with people from the Katsina/ Kaduna/ Kano mafia group when the President, Finance Minister, Minister of National Planning, and the CBN governor are all from the same area? If you do, then you would have simply sold out the rest of the nation for political exepediency, foolishness, or corruption.

Until it's proved that these banks were indeed actually insolvent beyond every doubt, everybody needs to remain watchful and skeptical about Sanusi's moves.

To attribute the problems in soludos consolidated banks as a failure has some flaws which I will want to highlight.
1. Soludo on no occassion guaranteed the elimination of problems from the backing sector with banking consolidation but aimed at reducing these problems by making the banks more resilient. Did he fail in this aim?

2. Soludo reported to the presidency earlier this year that while there were presently problems with various banks as a result of problems in the underlying Nigerian/global Economy they did not pose any serious problems in  to the wider economy. Can you then say that he did not identify these problems?

3. The only difference between soludo and sanusi is that he sought to go about fixing these problems different manner. He secretly and assessed banks,  shook up the management of these banks as in the cases of WEMA,and spring banks, managed the acquisition of weaker banks by stronger performing banks, Under Soludo, the CBN gave Oceanic bank N80 billion; Intercontinental bank, N72 billion; Skye Bank, N60 billion; and FinBank, N40 billion to stem the possible failure of these banks. Is that not what sanusi is doing at the moment ?

3. Problems with the global banking institution has been a trend for a couple of years now, did you think Nigeria would remain insulated from this?

4. Do you think its a good idea for a CBN governor to go whistle blowing crashing the Naira and the stock market and denting investor confidence  (which has taken years to build and might take years to recover )in our banking sector?

5. Does all this take away the fact that under soludo, Nigerias banking sector grew from a sub-saharan share of 16% to 48 %?

6. Will you judge soludo or sanusi based on their different management approaches or based on the advancements made by the banking sector?

7. Can you mention any other areas of the Nigerian economy in which these banks operate that can be said to be faring anywhere near as well as the banking sector ?

I am so happy we still have people like @volunteer around.

@adigun101
Thank you very much. I cannot agree more.

@naijaking u are a fool. the government is taking over the banks. they have to bring in new management because it is going to inject 400billion naira into the banks and it wants the 400billlion naira to be well managed. once owners of this banks return the money borrowed to it by cbn then their banks will be returned.so there is nothing like northern agenda and the banks are not up for sale.during obj regime cbn governor and minister of finance are not northerners so it is not a new thing. if any bank is up for obj is the only person whom can buy it, out of his power sector loot and he is not a northerner.

@mex
Great post! Sincerely I see lots of senses
in your contribution. Keep it up.

Soludo has done his job, any man that has
no flaw can continue abusing and lookindg
for his past error.

We are ALL subject to error!

This northern agenda argument is most ludicrous.

@volunteer, thank u 4 simplifying d issue for dem.

@beaf, it's a pity u still continue to call BOFIA a military decree after all d lecture we av given u in d various threads on ds topic. But to spoonfeed u again, it was originally Banking and other financial institutions decree(BOFID) when it came to existence in 1991, but was amended later In 2003 to become an act(BOFIA). All Soludo's powers were also drawn from ds BOFIA but now dat d punitive part is being invoked, you remember it is a 'decree'. How hypocritical can some people be.

We should also remember that what was changed was the management team (CEOs and Executive Directors + CFO) and not the entire board of directors or chairmen. So most definitely, while Akingbola has been knocked off his saddle since CBN would not trust him to manage their money, he still has his equity intact but diminished to the extent of CBNs bail-out money. That same impact would be felt by everyone who has shares in any of the five banks and the more banks that may join them. And while CBN has automatically become a part of the board of those banks, it does not have a power of veto!

So simply, assuming an Akingbola or Ibru owned about 10% of their banks and CBN has now shored up their capital by say 40% to keep them solvent and in business, it means that initial 10% equity is now only worth about 6% or less (and same would have happened to the holding of all the shareholders of the bank including you and myself). The bank CEOs while being high profile overlooked the most important aspect of their banks (and jobs) - Risk Management! It was sheer recklessness (pitiable though) on their part.

Do you still remember how NNPC lent money to AP and AP could not repay and the debt was converted to equity and ultimately sold to Okocha, then Jimoh Buraimoh, and now Otedola. This scenario would play out if the former owner-managers cannot get enough money to buy back their banks or get willing partners to merge with.

know all
funny aka name!
I will make a note on what u said so far. my contribution will come at the end of the current governors tenure. because from ur submission its what a successor does that scores a predecessor's.
thanks for ur empty banter.

i wonder what you want to achieve by this thread. but be that as it may, soludo was a grand success and i wonder where we would have been in terms of healthy banking system without him.