SapeleGuy:

You are right, he can get more leverage by continually implying Soludo's achievement was tarnished by corruption. But what is Sanusi's legacy going to be?

SapeleGuy:

You are right, he can get more leverage by continually implying Soludo's achievement was tarnished by corruption. But what is Sanusi's legacy going to be?

naijaking1:

You're just repeating or echoing one of Sanusi's false and misleading mantra.

You don't even have to go to Bloomberg, just go to NSE. Before Sept. 2008, Oceanic stock was #38, when stock prices fell all over the World it came down to around #17, when Sanusi took over, it was about #15, today, it's less than #3. Go figure, but please don't go blaming the CEOs or the shareholders.
Now, I see your motive. Artificially forcing down the share prices of these banks as a way of making it easier for Hausa people to take over ownership will be the most laughable case of documented "armed robbery" of the decade.

naijatoday:

It not mantra, it is what is happening everyday around the world. When a copy cannot meet its obligation to debtors, they become owners.

SapeleGuy:

was there any point when these banks couldn't meet their financial obligations?

Beaf:

Bottom line? Do not invest your money in Nigeria.
We need someone with savvy to run the CBN. Area boy thinking is poor at any level, but is a destructive decease in the sophisticated areas of high finance.

sjeezy8:

Wrong fisherman. You invest in Nigeria making sure you use British and USA banks based in Nigeria Duh.

step out of the creeks of the delta for a chance punk

naijaking1:

Old boy na wa for you-o!
When you want to see what ignorance looks like, just get a mirrow.

CBN does not own majority share in many of these banks. The role of CBN is to regulate, not to own. Even with injection of a paltry 400 billion naira , CBN is far from being major sharholders. Union bank is worth over 2 trillion, and Sanusi questionably injected 100billion, does that make CBN the major share holder?

sjeezy8:

Wrong fisherman. You invest in Nigeria making sure you use British and USA banks based in Nigeria Duh.

step out of the creeks of the delta for a chance punk

texazzpete:

Was there any point that Peter Ololo could not afford to buy lunch for himself? That means it's impossible for him to be owing N100 billion since he could eat and fuel his car happily, huh?

Outward rosiness can mask inner rot.

Beaf:

If I need to use "British and USA banks based in Nigeria" what does that say about Sanusi and your comprehension?

SapeleGuy:

It sounds to me like you are venturing into the realms of insolvency, was there any point when these banks couldn't meet their financial obligations? why couldn't the Companies and Allied Matters Act be relied upon?

Further more how much of the money he set aside was actually used in shoring up these banks?

naijatoday:


When a bank is run its day to day activities with the money it is getting from the CBN through EDW and through inter bank market (even though the price of borrowing was outrageous and only those that were desperate were borrowing) and limiting the amount customers could redraw or stating a higher minimum you need to open an account when other banks were cutting their minimum (all the banks are considered to be in the same category), it a sign that something aint right.
This is conjecture at best

When a bank takes a full page ad in the newspaper and telling the president of country to become their official debtor collector, that is another sign of desperation. Cutting workers pay is also a sign especially when you are trying to do it on the down low.

Could this be because govt are in fact the biggest debtors?

The CBN also said one of the five banks was technically insolvent. If that was the US, I am sure the FDIC would have showed up at 4:59pm on a Friday and taken over the bank.

Exactly, we have laws in Nigeria, why didn't he rely on our laws?

Which money are you talking about?
the #400 billion that was allegedly used to shore up the banks

It not about if the banks could meet their obligation or not, are you telling me that all the 106 banks that have failed in the US could not meet their obligations? When you go pass the limit that the CBN (federal reserve) has set then you become insolvent. And the FDIC comes to your office on friday to take over. Even if on that day you payed your obligations to your creditors
We have a procedure for this in Nigeria why didn't he follow it? If we don't have such a procedure what has he done to ensure one is in place for the future. What has he done in terms of policy and regulatory reform?

Economic and Financial Crimes Commission (EFCC) says yesterday that the sacked Managing Director of Bank PHB Plc Francis Atuche has allegedly laundered N20 billion depositors’ funds and will have to face fresh charges.
Atuche was arraigned last Wednesday alongside a former Executive Director Charles Ojo on a 26 count charges before a Federal High Court in Ikoyi, Lagos for alleged fraudulent transactions worth N80 billion which weakened the liquidity of the bank.

A senior official in the commission involved in the investigation, told Sunday Trust yesterday that[b] Atuche allegedly used existing companies to transfer money into foreign accounts through bogus loans.
[/b]
The former bank executive is said to have forged documents of these companies without their knowledge to take out depositors’ monies.

The official who did not want to be named said in one of the cases of the fraud, a company, Tegosan Oil & Gas owned by Peter Ololo was used to siphon N4 billion as loan for a tank farm.

However, when operatives interviewed Ololo he denied knowledge of the transaction and claimed his signature was forged.

“The account was opened on December 27, 2007 and was credited with N4billion on the same day, our investigations have revealed that the two signatories to the account were forged,” the official explained.

The source also said, “Another company, Extra Oil Nig. Ltd originally owned by one Diamond Uju had a fake account in the bank under the name Tochukwu Kemakolan and was used to siphon N3.9bn.”

According to the source, using fake documents the former bank chief allegedly stole N3.5 billion each from Future View Security Ltd and Traegec Nig. Ltd.

EFCC’s spokesman, Femi Babafemi when contacted for comments on the matter said, “fresh charges cannot be ruled out in some of the cases involving the bank executives because the Chairman Mrs Farida Waziri has given a directive that operatives should dig deeper into their activities as a result of which further investigations are still ongoing.”

ndu_chucks:

Mainwhile:

we might as well blame cbn for this report too, since that is the order of the day. cbn for handle every ting hush hush, under under, quietly, so dat shareholders for no lose money at all. na cbn and sanusi dey cause all dis embarassment - why dem go give efcc day kind information na?

i sure say, we no go here any outrage about dis report from usual suspects. according to ololo dem forge him signature, and successfully  transfer N4billion overseas!          i suppose atuche with de able assistance of ololo safeguard dat N4billion wey belong to shareholders - him na worthy managing director.

mark my words again, many of dis ceos go spend cozy time in prison, including some of de old superstars wey still dey get sympathy from people wey suppose to know better.

When a bank is run its day to day activities with the money it is getting from the CBN through EDW and through inter bank market (even though the price of borrowing was outrageous and only those that were desperate were borrowing) and limiting the amount customers could redraw or stating a higher minimum you need to open an account when other banks were cutting their minimum (all the banks are considered to be in the same category), it a sign that something aint right.
This is conjecture at

How is it conjecture? So no bank borrowed money from the EDW? So  inter bank market rate were never high? So intercontinental bank did not raise its minimum?  

When a bank takes a full page ad in the newspaper and telling the president of country to become their official debtor collector, that is another sign of desperation. Cutting workers pay is also a sign especially when you are trying to do it on the down low.

Could this be because govt are in fact the biggest debtors?

Intercontinental wanted the president to help them collect the money a private company (not a government or listed company) was owing. If they were not desperate they could have done what Access had done a few days before with the AP situation. It took AP to court.

The CBN also said one of the five banks was technically insolvent. If that was the US, I am sure the FDIC would have showed up at 4:59pm on a Friday and taken over the bank.

Exactly, we have laws in Nigeria, why didn't he rely on our laws?

This is Nigeria have we ever handled a bank closing properly. At the end of the day the biggest losers will not be the CEO, but Nigerians who wake up everyday to go to work and put their money in this banks. There are still people who have their money stuck in those wonder banks that have died or gone broke becasue of that.

So picking out of the two, I think saving the banks was better.

Which money are you talking about?
the #400 billion that was allegedly used to shore up the banks

I will like to know how much has been used. So far none of the banks has come out to say it does not need or has not used any part of the money. if you have a bank saying that please post.



It not about if the banks could meet their obligation or not, are you telling me that all the 106 banks that have failed in the US could not meet their obligations? When you go pass the limit that the CBN (federal reserve) has set then you become insolvent. And the FDIC comes to your office on friday to take over. Even if on that day you payed your obligations to your creditors
We have a procedure for this in Nigeria why didn't he follow it? If we don't have such a procedure what has he done to ensure one is in place for the future. What has he done in terms of policy and regulatory reform?


The procedure is either for the CBN to take over the bank by providing it money as loans or buying shares in the company or allow it to fail.

It is the same thing the U.S they saved the systematically important banks such as Bank of America (whose CEO is leaving at the end of the year after pressure from government agencies), Citi group ( got a new CEO). In the U.K too Lloyds (new CEO), Northern Rock (New CEO). The all got new CEO's to go along with the bailout they got from the government.

Ibime:

Naijaking1,

I have been to check Union Banks market cap and it tells me here that Union Bank's market cap is about N70bn:

http://www.firstglobalselect.com/scripts/cgiip.wsc/globalone/htm/quote_and_news.r?pisharetype-id=6330


Another reliable source tells me that Union Bank's market cap is $651m or N97bn

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ric=UBNP.LG


If this is the case, then CBN's N100bn investment makes them the majority shareholder (not to mention loans under the EDW which have probably been converted to shares)

Can you show me where you got your info that Union Bank's market cap is N2trn? I hope you are not confusing market cap with net asset value.

Beaf:

Let the law take its cause, instead of Sanusi saying funny and dictatorial stuff to the press everyday. Why is Sanusi so concerned about condemning the CEO's before the courts (Sometin dey? ). In fact, if they have half decent lawyers, he has shot himself in the foot and prejudiced the case against them.

mbulela:

why was the board not sacked at the same time as the executive team?

naijaking1:



Bye the way, Sanusi said in one of his rambling sessions that the injected funds are not share capitals, but just a temporary measure, so where you came up with the idea that CBN is the major shareholder in a publicly quoted bank still beats me.

mbulela:

Naijaking has a fundamental problem with Sanusi, hence he sees nothing good in him.
He at the other extreme of men like Suraj.

on this case, i think it goes to the heart of my question at the height of this issue;why was the board not sacked at the same time as the executive team?
i see no reason why CBN should rescue ailing banks with billions and still have the interim mgt team reporting to the same inept board that were partners in destruction with the sacked executive team.
i am not a an of Sanusi but i believe that his actions will drive the fear of God into those cowboy bankers that think acting with impunity and recklessness with depositors funds is akin to hard work and God's grace.
After all this grammar, i am still waiting for the CEO apologists to provide a coherent argument that Sanusi witch hunted the sacked guy.in order words, that they are innocent of the crimes for which they were sacked.
all i hear is that they are not the only ones.to that i answer that, we may not be able to catch all the thieves but let us start somewhere and if you happen to be a scape goat,too bad for you.

for all the billions the CBN put in those ailing banks,it deserves to have oversight responsibility over the banks and not the discredited boards.
if all that happened could happen under their watch, what is the guarantee that same or worse will not happen with the interim CEOs?
let them report directly to CBN, so that if they fail, their will be no one to blame but the CBN.

naijaking1:

(1.)The above link will show you that by March 31st, 2007, Union bank had a total asset of more than #699 billion. Two years later, it's easy to see how this figure easily ran into trillions of naira.

(2.) Net asset vs market cap.--- you're just splitting hair. My position is that you can't buy a company worth #1 or 2 trillion with #100billion, unless you be thief, or your name be Sanusi. I still stand by that statement.

(3.) Bye the way, Sanusi said in one of his rambling sessions that the injected funds are not share capitals, but just a temporary measure, so where you came up with the idea that CBN is the major shareholder in a publicly quoted bank still beats me.

naijaking1:

@Ibime
You just like to spin things upside down?
Our debated is muted by the fact that even Sanusi had said on several occassions that the money injected into the banks are temporary assistance that will refunded in 18 months, they're not for shares.
I guess you just don't want to admit that you screwed up when you said that CBN is the major shareholder of these banks. Just admit it.