A crisis foretold

In spite of the hype about a solid banking system with strong institutions, the Nigerian Deposit Insurance Corporation had said in its Annual Report published in 2008 that only four of the 24 banks operating in the country were sound. It rated 16 banks satisfactory, four unsatisfactory and one unhealthy. The CBN and the NDIC later attempted to douse the tension created by this ‘shocker’ with manageable interpretations of the words sound, satisfactory and unhealthy. But observers had been given the hint that all was not as well as was being touted by the banks.


Ripples created by a June 2009 edition of The Africa Report, which listed Oceanic Bank International Plc, Intercontinental Bank Plc, Union Bank Plc, Access Bank Plc, Ecobank Plc, First City Monument Bank Plc and Sterling Bank Plc as banks in the “shaken” category, were also greeted with rage by the big banks in the group. They shot the ratings down, using their financials as evidence of strength. Intercontinental Bank had claimed that its total assets rose by 586.3 per cent, up from N205bn in 2005, to N1.4tn in 2008. For Oceanic Bank also, total asset base as at the end of December 2008 grew to N1.26tn, up from N1.01tn in the preceding year.


However, Bloomberg News had quoted the World Bank’s Global Development Finance Report as saying that some estimates indicated that as much as $10bn or half of all the banks’ holdings were “tied up in questionable assets”.

violent:


In economies with advanced financial services system, the Bank's risk from lending activities was thought to be adequately distributed in the forms of collateralized debt obligations and Insurance policies, so every one was believed to be happy.

In Nigeria, this is far from being the case, the wealthy got richer from loans from the banks and they just simply refused to pay back, many of them bought properties abroad with depositors funds, acquired massive real estates and invested the remainder in long term holdings. But the question is who bears the risk of default? Depositors of course.

This is where the Regulatory frame work comes in, you can't keep borrowing money from the Expanded discount windows to individuals based on their name and net worth alone, or more ridiculously because the borrower is a friend of the family,  you need a form of collateral just incase of an event of default which we witnessed.
Moreover i doubt any sane regulatory frame work will not consider liquidity, profitability and cash ratios before taking such a decision, the banks are over leveraged, and its totally due to the shameful malpractices of the CEOs. now guess who is bearing the brunt? the shareholders and the employees of course, logic will dictate that if it hadn't been curbed on time, Depositors will surely have their share of the cake, and trust me, that will be the beginning of a fcked up economy.

Yes Soludo did the work of consolidation, and we were so thankful for that to an extent where all eyes were closed against the rot that rooted in the post consolidated banks while Soludo secretly planned his political ambition.

Sanusi is not to blame, the dude is just doing his work protecting the Nigerian economy and depositors interest, blame Soludo for putting his own personal interest before everything else.

I have chosen to reply you cause you are making sense from an informed point of view.

First on the issues of CDO and CDS which were supposed to act as so called inusrance policies, that did not manage the risk effectively it only shifted it from one party to the other, so in no way did that adequately distribute the risk as the regulators have now come to say the oversight on this instruments were not adequate hence the problem.

To the issue at hand, you stated the problem in Nigeria correctly to giving loans to the wealthy who refused to pay back, please have a look at the right offs been given by the R8 banks and tell me how the actions of Sanusi has changed this. Exactly i agree with your statement in bold above, but how does the regulator solve this by picking on banks without any framework in place to define anything, is it by picking on few banks. The margin loans went bad not because there was no collateral but a mistake on how volatile the collaterals were? Similar to the CDI notes the price of the houses dropped so all investors had were papers.

I am totally for the reform but it should be done properly, punish who needs to be punished but let it be clear. You said you doubted if any sane regulator would not have ratios he used, then the information should be published and there for all to see. What were the measures used? We need to know.

For me more needs to be done, this is just scratching the top, but it cant be achieved overnight, the measures needs to be clear and the objectives defined.

Soludo did a job of consolidating but it was done with good hindsight and clear for all to see, the criteria was set then all were told to achieve it, even when he decided to place the nations reserves with Nigerian banks, he defined the criteria.

Sanusi should properly articulate his policy for it to be clear.

away4real:

I have chosen to reply you cause you are making sense from an informed point of view.

No wahala. Even those of us wey no dey make sense from informed point of views are ok with your position below.

away4real:

I am totally for the reform but it should be done properly, punish who needs to be punished but let it be clear.

His style may not appeal to all but the simple fact that he is bold enough to tackled the core problems shows that the man Sanusi should be supported by all well meaning Nigerians.

So, as long as you support the reform then there is no wahala whatsoever. The issue of style is subjective.

away4real:

This does not have to heppen to safe guard personal deposits and the financial sector.

Perhaps if we had seen  a properly thought out risk management mechanism a wholistic approach and not the half hearted witch hunting that took place. We would have had a case when there was a clear transparent approach and banks that fall short will be obvious to all.

Totally agreed but what u hv said is like crying over spilt milk. Considering hw deep this has eaten into the banking sector,I think this is the way forward; Implementations of POLICIES,RULES and REGULATIONS with AGGRESSION but CAUTION

Sometimes am left deflated with the comments of people concerning the situations in our banks. Many would rather have Sanusi Lamido tied to a stake and shot. Many rather would see Soludo as the hero or the failure of the whole saga. Many complained about the handling of the situation or the agenda being pursued. Considering my recent posts on these issues, it pains me to realise that some people are just too sentimental to be reasonable, too myopic to be knowledgeable.

During Soludo era, he initiated the consolidation programme, at that time that was what was needed to grow the industry. He consolidated the Banks and the insurance sector followed. They were all correct policies, but like all changes many people resisted. Like many uncertainties that accompany change, many jobs were lost, many of the banks and insurance companies were closed. Many people called for Soludo's head at at that time.

The problem is that most people condemning Sanusi's policy are those who never bother to gain knowledge about consolidation and after effects. Soludo did a good job of consolidation but like I have mentioned in my other posts, we could not and did not manage the success well. We lived, I mean our banks transacted business in the most reckless manner. Funds came in from all fronts, there was huge huge fund to deploy to grow the economy.

What did we witness, the real sector of the economy, the productive manufacturing sector was denied fund rather banks engaged in round tripping, speculative trading, margin loans and other sundry investments that did not really impart directly and positively on the national economy. At this time, the real sector was declining while our banks were declaring humongous profit. You wonder where they got the profit from.

The managers of the new found wealth decided to be brazen in their tastes and pursued bank business in a crass manner, opening branches with such depravity that you wonder if bank branches are not meant to be revenue centres.  All these went on as the banks' authorities began to cook up their books. The regulator under the leadership of Soludo started looking the other ways when rules were been broken. That is the crime of Soludo. He lost his midas touch and all banks became banana republics.

If you take pains to study consolidation and after effects, one of the knowledge you gain is that a bad managed consolidation would definitely bring about disastrous consequences. It all started under Soludo, the problems and all the intrigues of board crises, the abuses surrounding mergers and acquisition, the maltreatment/segregation of workers in newly consolidated banks that emerged through merger and acquisition. These are all signs of bad management of consolidation processes. The insider abuses is the worst because it is driven by pure lust and ego. Soludo became at this point a non professional and a cohort because he wanted to assuage his own lust to boost his ego. SOLUDO LOST IT ALL.

The banks were beginning to show the distress signs when fund flow cease as a result of global meltdown, Soludo said it would not affect Nigeria, if you are not an educated fool like Soludo, you would have known that it is just a matter of time. How can we be immuned when our banks were busing fighting themselves for credit finances from international financial institutions, when 98% of our national revenue comes from crude oil export.

The funds dried out and most of the banks started running to EXPANDED DISCOUNT WINDOW to remain in business. Soludo deliberately opened the window to discreetly support his guilty friends on a short term. Soludo at this point became a failure. The window never solved the problem because at the root of the problem was greed, lust and ego.

When consolidation is badly managed and a crisis point is reached, our dear misguided Soludo knows very well that solution lies in management take over, rightsizing and downsizing. Not doing these means only one thing, untimely painful corporate death.

Sanusi came in and took the best decision in the circumstances, prevent the corporate death of these banks by sacking the reckless unprofessional managers (i.e. management take over). What you are witnessing is the last leg of consolidation and its after effects, rightsizing and downsizing. Shouting at the roof tops would not stop it. All the banks, truth must be told have been mismanaged, we have to give kudos to Sanusi for having the courage to take the painful drastic decisions.

Sanusi may have been part of the rot but he divorced himself from that rotten past by taking that bold uncommon resolve to chart a new management path for all the banks in Nigeria, the very same action your lily livered, self serving, greedy and misguided Soludo ran from.

My advice to NAIRALANDERS and other Nigerians is to acquire knowledge and seek to add to their knowledge so that we can talk less sentimentally, myopically and stupidly.

For those who lost their lives, they should go and redouble their efforts to survive the harsh realities of life. They were too deep in their comfort zones now is the time for them to play some chess game of life. For those who are expecting the top echelons to be sacked whilst sparing the lower cadres, just know now that corporate life is not like that.

In a game of chess the pawns suffers for the Bishops, the Knights, the Rooks, the Queen and ultimately the King. Whilst you can sacrifice the Queen in a game of chess, you do everything to protect the King. The pawn can and may become the Queen but not the King and in business the Shareholders are the KINGS whose interest and investment must be protected at all cost. Every other things are sacrifice-able.

away4real:

I have chosen to reply you cause you are making sense from an informed point of view.

First on the issues of CDO and CDS which were supposed to act as so called inusrance policies, that did not manage the risk effectively  it only shifted it from one party to the other, so in no way did that adequately distribute the risk as the regulators have now come to say the oversight on this instruments were not adequate hence the problem.

To the issue at hand, you stated the problem in Nigeria correctly to giving loans to the wealthy who refused to pay back, please have a look at the right offs been given by the R8 banks and tell me how the actions of Sanusi has changed this. Exactly i agree with your statement in bold above, but how does the regulator solve this by picking on banks without any framework in place to define anything, is it by picking on few banks. The margin loans went bad not because there was no collateral but a mistake on how volatile the collaterals were? Similar to the CDI notes the price of the houses dropped so all investors had were papers.

I am totally for the reform but it should be done properly, punish who needs to be punished but let it be clear. You said you doubted if any sane regulator would not have ratios he used, then the information should be published and there for all to see. What were the measures used? We need to know.

For me more needs to be done, this is just scratching the top, but it cant be achieved overnight, the measures needs to be clear and the objectives defined.

Soludo did a job of consolidating but it was done with good hindsight and clear for all to see, the criteria was set then all were told to achieve it, even when he decided to place the nations reserves with Nigerian banks, he defined the criteria.

Sanusi should properly articulate his policy for it to be clear.

I agree with you his style and approach has been rather rash and hasty, especially considering the short time duration from his appointment to the reform, and like i said before, it might even have some malicious undertone to it.

I also believe this will eventually have tremendous effect on credit intermediation and the economic status of the country in years to follow.

I also agree with u on the fact that the CBN ought to disclose whatever measure it is using to justify "Banks that are not stable" rather than a mere theoretical propaganda which seem to be all we have for now.

However, my fury is directed on how careless the management of the banks were at managing the risk of their portfolios.  I wouldn't as a Bank executive ask for shares as collateral, given their unpredictability, random price movements and levels of risks, for a 10 billion naira loan, that to me seem like carelessness of the highest order that shouldn't go unpunished.

The CDI had insurance against counterparty risks the underlying collaterals were adequately insured, the only problem was because some institutions with AA ratings like AIG were seen as companies that will never fail,

In as much as this was proven wrong, it seem to me a right step in a right direction to obtain insurance on collaterals rather than sit back and watch while depositors money is being lavishly spent by "so called big boys" and the bank is left to hang on the thin thread of high leverage.

I have stated before on this Forum the glaring facts which point ot Mr. Lamido Sanusi as being the worst and most childish regulator ever.

There are two cardinal aspects of this mess that the CBN Governor got disastrously wrong. You see, when laws, regulations and procedures are laid down, the purpose is to avert anarchy. If we continue to act with disregard for regulations, we will continue to be a disjointed and directionless society. That forms the plank for the emergence of a failed state.

The two critical bits that Sanusi got wrong: Regulatory Discretion & Procedure and Approprition of Public Funds.

If you are familiar with the Fundamentals of Regulatory Oversight in any industry, you will be aware that the cardinal function of the Regulator is to guarantee a healthy industry and in so doing, the Regulator has various tools of intervention. The tools are to be excercised progressively in such a manner that correction of anomalies is effected with minimal disruption to the system. The ultimate sanctions are only reserved for irreversible situations and even at that ONLY after the application of intermediary measures which have failed.

Sanusi did not apply any intermediary measures whatsoever before wielding the big stick and he failed to note the likely ripple effects of loss of local and international confidence and run on deposits that attend such public shows of regulatory might.

It is therefore clear that as a Regulator he acted hastily, and without discretion, which is scandalous considering that this is a post he has held for less than two months. Clear measures availed him in taking gradual steps to correct the anomalies.

Furthermore a Regulator must be impartial - and in this he has manifestly failed by implicitly giving the other banks more time to tidy up their books while dragging the first lot into the mud.

The Second major point is Appropriation of Public funds.
Under the Constitution of Nigeria ALL FUNDS - HOWEVER SOURCED, PRODUCED OR DERIVED, accrue FIRST, AND AUTOMATICALLY TO THE CONSOLIDATED FEDERATION ACCOUNT, AND NO FUNDS MAY BE WITHDRWAN THEREFROM WITHOUT APPROPRIATION FOR SUCH PURPOSE BY THE PARLIAMENT (NATIONAL ASSEMBLY).

Accordingly, once monies are printed (which is at all events a questionable approach to creating wealth) such monies accrue first to the Federation Account and must be appropriated before being touched at all.

Sanusi made two infantile arguments in his attempt to evade this. He stated that it was not an expenditure but a loan. This is irrelevant because the Constitution does not make a distinction. It states that ALL monies must be appropriated before being withdrawn. Thus it does not matter what you are withdrawing the money for: it must be appropriated before being withdrawn. Secondly he stated that the money was not from the Federation Account. What a laugh - the law states that ALL monies should go to that account!

His action sets a very dangerous precedent: In future the CBN Governor may print trillions of naira and disburse as he pleases since in his argument, its a loan. So perhaps he can print 100 trillion naira and give out as loans without the proper process of legislative approval? Also, if the other banks he is still auditing are found to need help, what will he do? Go back to his back yard and print more billions?

Aside from the illegality pointed out above, as an economist he should be aware that such reckless printing of monies is a key cause of inflationary trends within the economy.

Recall that both the US and UK effected similar bail-outs last year at the height of the recession. It may interest you to know that in both societies the actions were carried out by the Central Banks through Acts of Parliament.

Given the shaky foundations of his initial actions as outlined above, it is hardly surprising that he has emarked on destruction of jobs deliberately.

The fact is that banking regulation does not extend to determining how much staff a bank should have. That does not concern the CBN at all and is a matter for the discretion of the management of each bank. Monetery Policy and Capital movement should be of more concern to the CBN.

Sanusi is on a mission to destroy Nigeria's economy.

In catastrophes of this magnitude there is usually enough blame to go round.
Yar'Adua, The Minister of Finance, Sanusi, Soludo, Bank MD's, Their boards of directors, External and Internal Auditors, defaulting debtors, Bank staff and even our economic system (capitalism) are all responsible to varying degrees.
There's no point in trying to place the entire blame on one particular individual (after all this isn't someone's water pot that got broken).

. . . . . . . . . besides isn't the revelation of the banking activities all 2 revealing and has thrown more light into d banking sector. Don't u appreciate d nipping of d bud at this crucial time? B/4 u start blaming Sanusi's method, u need 2 study hw d Americans,French,British and Japanese recovered 4rm this recession. I can assure u that if u do u'll definitely c a pattern that can b compared 2 our own method of recovery.

its unfortunate we av a politician as a cbn gov.

@GNBohr, very well articulated. Although I feel that excuses could still be made for Soludo as I believe he acted in the interest of the nation. Sanusi is doing marvelous and he should just continue doing the good work. However I do reserve some sentiments that the recent massive sacks in the industry will cause more harm than good and on that basis there should have been a better way to handle things in these delicate times.

Deep Sight:

I have stated before on this Forum the glaring facts which point ot Mr. Lamido Sanusi as being the worst and most childish regulator ever.

There are two cardinal aspects of this mess that the CBN Governor got disastrously wrong. You see, when laws, regulations and procedures are laid down, the purpose is to avert anarchy. If we continue to act with disregard for regulations, we will continue to be a disjointed and directionless society. That forms the plank for the emergence of a failed state.

The two critical bits that Sanusi got wrong: Regulatory Discretion & Procedure and Approprition of Public Funds.

If you are familiar with the Fundamentals of Regulatory Oversight in any industry, you will be aware that the cardinal function of the Regulator is to guarantee a healthy industry and in so doing, the Regulator has various tools of intervention. The tools are to be excercised progressively in such a manner that correction of anomalies is effected with minimal disruption to the system. The ultimate sanctions are only reserved for irreversible situations and even at that ONLY after the application of intermediary measures which have failed.

Sanusi did not apply any intermediary measures whatsoever before wielding the big stick and he failed to note the likely ripple effects of loss of local and international confidence and run on deposits that attend such public shows of regulatory might.

It is therefore clear that as a Regulator he acted hastily, and without discretion, which is scandalous considering that this is a post he has held for less than two months. Clear measures availed him in taking gradual steps to correct the anomalies.

Furthermore a Regulator must be impartial - and in this he has manifestly failed by implicitly giving the other banks more time to tidy up their books while dragging the first lot into the mud.

The Second major point is Appropriation of Public funds.
Under the Constitution of Nigeria ALL FUNDS - HOWEVER SOURCED, PRODUCED OR DERIVED, accrue FIRST, AND AUTOMATICALLY TO THE CONSOLIDATED FEDERATION ACCOUNT, AND NO FUNDS MAY BE WITHDRWAN THEREFROM WITHOUT APPROPRIATION FOR SUCH PURPOSE BY THE PARLIAMENT (NATIONAL ASSEMBLY).

Accordingly, once monies are printed (which is at all events a questionable approach to creating wealth) such monies accrue first to the Federation Account and must be appropriated before being touched at all.

Sanusi made two infantile arguments in his attempt to evade this. He stated that it was not an expenditure but a loan. This is irrelevant because the Constitution does not make a distinction. It states that ALL monies must be appropriated before being withdrawn. Thus it does not matter what you are withdrawing the money for: it must be appropriated before being withdrawn. Secondly he stated that the money was not from the Federation Account. What a laugh - the law states that ALL monies should go to that account!

His action sets a very dangerous precedent: In future the CBN Governor may print trillions of naira and disburse as he pleases since in his argument, its a loan. So perhaps he can print 100 trillion naira and give out as loans without the proper process of legislative approval? Also, if the other banks he is still auditing are found to need help, what will he do? Go back to his back yard and print more billions?

Aside from the illegality pointed out above, as an economist he should be aware that such reckless printing of monies is a key cause of inflationary trends within the economy.

Recall that both the US and UK effected similar bail-outs last year at the height of the recession. It may interest you to know that in both societies the actions were carried out by the Central Banks through Acts of Parliament.

Everything comes to the singular conclusion that the dude is hasty and rash, i know thats bad, but i will rather deal with a rash and hasty CBN governor who stopped those CEOs from giving out 15 billion naira loan to their House girl {Oceanic bank} than a governor who will rather eat pop corn and tell us Nigeria is immune from the recession.
I resent his rash and partial approach but i applaud his quick intervention at stemming the tide of malpractice, carelessness and misappropriation of depositors funds and shareholders equity capital.
If anyone think the guy is wrong why not tell what you would have done in his shoes especially considering the fact that many of the sacked CEOs have connections at the federal level that can impede you from taking appropriate steps.

In the West, the crisis began when banks stopped lending to each other because no one knew the size of toxic asset the other is carrying on his balance sheet and this stopped the flow of credit which is the principal function of banks.
Sanusi's action was to prevent this from happening, and the money he set aside is to serve as a shock in case of a likely bank run.
and what is wrong with inflationary trends anyway? its a monetary policy means of stimulating an economy

BEACAUSE I AM INVOLVED.

One challenge we have in this country is taking side based on sentiments instead of facts and convictions. A few months back I advocated for caution on the issue of CBN and the Banks. I said we should give it 12months then decide if CBN has done well or not.
This is only the beginning. By the time the effects tickle down, even a goat will know the truth, even he refuses to admit it. Our people say that you can only tell a blind man that the soup does not have enough oil but, definitely, not salt. His taste buds will certainly guide him in that area.

For the avoidance of doubt the issue under discussion is manner of approach and not personality. That is, if you get what I mean.

Sanusi is a joke.

Sanusi did the wrong motherfucker. Quote: Dr Dre.

SLS took a very rash decision impliedly leading to the sack of these mammoth employees. I blame him for listening to his inexperienced advisers.

The majority of us Nigerians love SANUSI; bought for him we would never know that most of the opulence we see around is our hard earned money. Let more heads roll.

What most people dont understand is that the government is trying to EVEN keep the banks (which can at least re-hire) rather than losing the banks and all possibilities of re-hiring in future.

People shoud quit living in this myopic "understanding" they think they have and see it from a global point of view. You are a banker BECAUSE you were or are employed by a bank; NOT because you were born that.

Those of us that are not or were not know that you have the possibility of exploring other fields OR look inwards and get some focus to your life.

Building a "Banker" future or as they will call it "Career" is simply trying to be the jack of all trade because the core of banking is investment (which include those loans you call bad). No one succeeds that way!

My advise for any one is to stand by a profession and you can sell your services to a bank, there is no such thing as a banker - It just doesn't exist.

Well its indeed a huge blow on our economy and the effect will surely be massive, in a typical Nigerian setting most of the effected workers will have an average of 2 dependants multiply 3 by the total number of staff affected so far and yet to be affected as we are made to understand that other banks will soon follow, you will come up to over 60,000 Nigerians if an average of 1,000 is affected in each bank, Men! this is alarming.

If it will be the price for the stabilizing of our long ailing banking sector, fine! even though I wish there could be another way to get to the same end, but what can we do when the did is already done.

But if at the end of these and no tangible result is achieved from these highly inhuman exercise then it will be terrible indeed, I don't want to start judging Sanusi yet, but he should do everything possible to make sure that this yields the desired result or else I assure you that Nigerian's will not forgive him in a hurry.

Honestly I pity the effected people, but what can one do?

You want all the loan department staffs of the banks affected to be sacked and the positions left taken up by the middle and low cadre? Wonderful!

The over bloated salaries of bankers were not in order and today order is being restored and in the long run the banking industry will be better, salaries will be realistic, banks will be more proactive in generating legitimate money instead of falsifying accounts and they will not need to turn our young women into professional love-peddlers to meet unreliable targets.

Water will find its level with time and the time has come for the banking industry to be sanitized.

Ever wondered why a genuine trader cannot access N50,000.00 loan due to the very difficult conditions whereas another person can access N2,000,000,000.00 without collateral just because he knows the bank CEO and the funds are usually wasted and the bank in turn claims the loan is a bad loan?

What Sanusi is doing today is ok and is actually saving a lot of jobs that would have just disappeared in a few years when the effects of the lies and falsification of accounts would have gone full circle.

Meanwhile, the disengaged workers I understand where not sacked but advised to resign and I believe they were adequately compensated. I doubt if any bank would just sack someone without a good reason. Sack and resignation (whether cajoled, induced or advised) are not the same thing. The disengaged bankers can use the money paid to them to start a new life.

who is this snorer?

You want all the loan department staffs of the banks affected to be sacked and the positions left taken up by the middle and low cadre? Wonderful!

The over bloated salaries of bankers were not in order and today order is being restored and in the long run the banking industry will be better, salaries will be realistic, banks will be more proactive in generating legitimate money instead of falsifying accounts and they will not need to turn our young women into professional love-peddlers to meet unreliable targets.

Water will find its level with time and the time has come for the banking industry to be sanitized.

Ever wondered why a genuine trader cannot access N50,000.00 loan due to the very difficult conditions whereas another person can access N2,000,000,000.00 without collateral just because he knows the bank CEO and the funds are usually wasted and the bank in turn claims the loan is a bad loan?

What Sanusi is doing today is ok and is actually saving a lot of jobs that would have just disappeared in a few years when the effects of the lies and falsification of accounts would have gone full circle.

Meanwhile, the disengaged workers I understand where not sacked but advised to resign and I believe they were adequately compensated. I doubt if any bank would just sack someone without a good reason. Sack and resignation (whether cajoled, induced or advised) are not the same thing. The disengaged bankers can use the money paid to them to start a new life.

who is this snorer?

To those who keep on complaining about SLS, I would like to find out if they aware that most auto companies work on four-day shifts or lesser and that recruitment is being scaled down besides the lay-offs. If Dangote Flour was to limit production capacity by reducing number of shifts we'll hear no end on NL from all those with racist/tribalistic innuendoes et al to the move.
SLS may have been rash but a cancerous growth or gangrene infection cannot be treated the same way one treats malaria or thypoid!
Can someone please tell me why Zenith has to own branches on half of Ajose Adeogun or why a branch of Oceanic bank on Ikotun road will have 32 staff members before rightsizing its staff strength to 15?

Nigerians like populist policies - anything to play the gullible mind of the poor masses. Any policy that appears targeted at the 'rich and wealthy' is always welcome by the uninformed poor masses. Sanusi is playing this game with this situation in mind. In my humble opinion, he could have handled these problems in a much smarter and strategic manner with less brazenness. Again, his move is populist in Nigeria and ofcourse so many people are going to hit on me for taking this position. I'm taking a sidon-look position on this and waiting for the next couple of months to either prove me right or dead wrong.

the CBN does not need the federal government's or National assembly's approval to lend banks money. It is part of its responsibility.

If the ministry of finance is the one that lent the money to the banks, then it will need National Assembly's approval.

The CBN is "independent" it does not submit a budget to the National assembly for approval.

Sometimes we allow sentiments becloud our sense of judgment in this country.
When soludo started his consolidation agenda, some people were against it and even the national assembly was almost calling him to "order". They thought his policies were without human face. He did what was best at that time but how he got himself in the shadows of the banks' ceo leaves much to be desired. The effect of that "fellowship" has led to false declarations of massive profits which only shows on paper.
Today, Lamido Sanusi is sanitizing the mess created and ethnic and religious sentiments are being interpreted from his actions. Nigeria is a paradox. Let the man do his job. I dont see him towing the path of soludo. Soludo along the line metamorphosed into a politician and that again could explain why looked the other way while the CEOs were having a field day stealing and cooking up their books.
Let SLS do his job. No pain No gain.

SACKING THE BANKERS IS IT THE SOLUTION? AH I LAUGH THIS FUCKING COUNTRY , BIAS IN EVERY WHERE OKAY. THEN WHAT IS IT GOING TO BE THE RESPONDS OF THOSE INVOLVED IN THAT LOAN , SOMEBODY LIKE OTEDOLA, DANGOTE, OBAT, OLOLO, AKINGBOLA, JOMOH IBRAHIM AND SO MANY OTHERS IS THERE ANYTHING THEY ARE DOING ABOUT THIS PEOPLE THAN FLUSHING AN INNOCENT PEOPLE OUT OF THEIR DAILY BREAD.

THIS IS FAILED COUNTRY WHERE PEOPLE OF TOP CLASS BEING GIVEN AUTHENTIC RIGHT ON A ILLEGAL ACT . LOOK BANKS, EDUCATION SECTORS COMMUNICATION SECTORS , HEALTH SECTORS AND OTHER SECTORS LIKE THAT HAVE BEING "WILL" TO THE SO -CALLED OUR LEADER SO NOTHING BETTER WILL EVER OR CAN EVER COMES OUT OF THAT SECTORS THEY USED THOSE SECTORS AS THEIR FAMILY BIRTH PRICE SO WHAT DO YOU EXPECT HUH FELLOW NIGERIANS . BETTER LOOK FOR ANY MEANS TO SURVIVE LEGALLY

Its a shame we let sentiments make us shortsighted. All the staff of the 8 banks would have eventually lost their jobs in less than a year and millions of shareholders stranded. Those Bank Cheifs and fake millionaires were just daylight armed robbers. Thank God Sanusi was bold enuf