Soludo acknowledged that there were problems in the Banking Sector.
Created the EDW to assist the banks with credit.
Just like US created Tarp and co.

In order for the true positions of these banks to be ascertained he had just insisted on a common year end for all banks.
This was due before he left CBN.

He presided over the further merging of Banks e.g Bank PHB and Spring bank which got aborted.
He was also trying to do same for Wema bank and Fin Bank.
Just like the US government managed BoA and Merrill Lynch, Bear sterns and JP Morgan.

He had aknowledged that there was another set of consolidation on the cards but that the problems did not present any underlying problems to the wider economy.
This was until sanusi came a caused a quake.


Tell which Central Bank or reserve bank governor blew the whistle on the dire state on banks within their boundaries.
Mervyn king confesed a few months back how he had supplied RBS and Lloyds TSB with secure govenment funds of up to £60 bn.
This was not even leaked to the press untill more than a year after.

This dude in all his actions seems to be treating the banking sector with a lot contempt.
And wants to kill or at least leave them in a comatose state.

Can somebody kindly tell us when Sanusi's policies will start supporting the economy to create jobs again?

in 10years time?

Sounds like what thats what Sanusi is saying

I don't know about you but that does not sound like a good deal to me. Whoever is the next President in 2011 can help change this horrible destiny by replacing Sanusi.


Now we are told that we will now have various banks with different capital base. Trust me we will soon be back to pre-consolidation when banks going into bankruptcy with peoples live savings trapped was more beneficial to small bank owrners than remaining in business.

naijaking1:

I'm not working for Cecelia Ibru in any way, I'm one of the shareholders who have lost real money, thanks for Sanusi's stupidity, and he will never be forgiven.

So we have a motive now. Good!

naijaking1:

I don't know in what bubble you have been for the last year, because you have never heard of the salaries, compensations, and stock options of mega banks like Chase and Citibank.

yes, hefty bonuses and stock options. But not on a magnitude approaching Cecilia Ibru's grasping ways, and not one of those bonuses were illegal or shady in any way.
The main issue the public had with those bankers was on the morality of collecting such bonuses even in the heart of the crisis, not the[b] legality[/b].

Even a child should know the difference.

mikeansy:

Can somebody kindly tell us when Sanusi's policies will start supporting the economy to create jobs again?

in 10years time?

Sounds like what thats what Sanusi is saying

I don't know about you but that does not sound like a good deal to me. Whoever is the next President in 2011 can help change this horrible destiny by replacing Sanusi.


Now we are told that we will now have various banks with different capital base. Trust me we will soon be back to pre-consolidation when banks going into bankruptcy with peoples live savings trapped was more beneficial to small bank owrners than remaining in business.

I'd much rather the new president focused his efforts on improving the power situation in Nigeria. Now THAT will get jobs going again.

The draconian banking loan policies under Soludo didn't exactly do much to help small scale businesses get going, did they?

chidichris:

@mikeansy,
u have practically said and quoted every nigerian's view on CBN except mine.
in all, their views support the action of your soludo and this same mass support your soludo had during the opinion polls in anambra until the real election proved u and your partners wrong.
the issue of soludo under obasanjo does not have theories that are far from us.
look at these issues and prove me wrong;
1. official and (illegal)legal banking prostitution. this took to the high in our banking sector in order for the banks to meet up the targets.
2. loots and looting - under obasanjo's regime, this bank consolidation which made the banks to paste notice of maximum deposits on a transaction in our banks were just mere write ups as no body was invited to explain his/her deposit in any of our banks and thereby created the widest rooms for our God forsaken politicians to loot us to death.
3. the emergence of sanusi exposed issues that had been in place even during the much hyped soludo/ribadu war on corruption.
4.the immediate decission and annointment of soludo as the pdp candidate in anambra by pdp showed the relationship between these criminal groups
5. apart from calling soludo a fraud which i know before now, what else has sanusi lied about?
6. the initial ideas of banks consolidations were to put an organised system or a way of institutionalising our banks but if we must say the truth or have a chat with a senior banker and find out if any of these banks are institutionalised as claimed. they are all tensed as houses built on sandy soil with the fear of falling any day.
personally, i do not know sanusi or his mission but his tesimonies against soludo and his father(obj) are just the known truths.

what soludo brought then was just a boom in the banking industry which made our banks pay like or  more than the oil companies then but later on, workers became weary of the things to come and we can agree here that the boom has come and gone hence salaries and jobs are no longer secured as they used to be.

stop telling lies jo. am i not nigerian? i don't share his twisted views.

mikeansy:

Can somebody kindly tell us when Sanusi's policies will start supporting the economy to create jobs again?

in 10years time?

Sounds like what thats what Sanusi is saying

I don't know about you but that does not sound like a good deal to me. Whoever is the next President in 2011 can help change this horrible destiny by replacing Sanusi.


Now we are told that we will now have various banks with different capital base. Trust me we will soon be back to pre-consolidation when banks going into bankruptcy with peoples live savings trapped was more beneficial to small bank owrners than remaining in business.

Sanusi is already asking for extension of his lacklustre tenure by another 4 years to make it about 10 years.
Everybody knows that he has failed his first year in office, but he wants to lay foundation to deflect blame that will surely come to him after 4 years. " I told you guys these changes will start bearing dividends after 10 years" he would say.

naijaking1:

Sanusi is already asking for extension of his lacklustre tenure by another 4 years to make it about 10 years.
Everybody knows that he has failed his first year in office, but he wants to lay foundation to deflect blame that will surely come to him after 4 years. " I told you guys these changes will start bearing dividends after 10 years" he would say.

They set the standards so low for themselves

talk about hopelessness

texazzpete:

So we have a motive now. Good!

yes, hefty bonuses and stock options. But not on a magnitude approaching Cecilia Ibru's grasping ways, and not one of those bonuses were illegal or shady in any way.
The main issue the public had with those bankers was on the morality of collecting such bonuses even in the heart of the crisis, not the[b] legality[/b].

Even a child should know the difference.

Now, I get it. I am sorry I failed to notice your ignorance of basic tenets of capitalism a long time ago.
The market place, the fighting ring, and capital market is not a place to play judge of people's morality. You go to church or mosque for that. I recommend the most basic book about capitalism to you and Sanusi.

No wonder you agree with the guy that people should not own banks, own private jets, cheat on their wives, miss church every sunday, log on to porn websites, own houses every where-while other Nigerians wallow in abject poverty, refuse to feed almajiris, or even fail to marry a 4th wife. ---- these are moral issues, and my friend, they're quite subjective, religious, and even cultural-based, but have no room in a democratic economy or capitalism.

Too much Islamic education rubbing off on you guys from Khartoum?

Naijaking, I am still waiting for your explanation of how it took you 18 months to notice that you were losing money in the stock market. 

Ibime:

Naijaking, I am still waiting for your explanation of how it took you 18 months to notice that you were losing money in the stock market.

I was going to let you slide with this chart you dey carry around like Ross Perot. You can't even understand your own chart as usual. By May 2008 the index peak at about 300, by May/June 2009 it was less than 100; more than 50% loss. While we had the global financial meltdown to blame for the initial loss, the subsequent and continued losses were 100% due to Sanusi.
If you had 50,000 units of Oceanic bank shares at a time when it was 37.50 naira a unit, you don't need to be a finance major to understand that you have been you have been wiped out when the values drop to 3.13 naira a unit, and have continued to be wiped out. Same goes for Union and Intercontinental banks.
Another criminal explanation of these artificially low prices could be that Sanusi wants to make the banks cheap enough for somebody to buy them.

^^^Mugu, so when did you buy the shares. . . in June 2009?   

What were you doing from Apr 2008 to June 2009 when you must have lost close to 70% of your value?

In January 2009 when your Oceanic share price touched N5, why didnt you complain then?

hahaha. . . my friend, dont lie to us. . . so it is only in August 2009 that you noticed you had lost money after 18 solid months of bull run under Soludo. . . this is the funniest sh@t I've heard this month.

What was the marketcap of the NSE All share Index in 2006 and what was the market cap in April 2009.

I will tell you. . . April 2009 was lower than Jan 2006.

Should we laud "boom and bust" policies if they only bring us back to where we originally started?

Did you mean a Bear (negative) run ?  Mid 2008 - April 2009 was a calamity for the stock market worldwide, so if there was a bear market in NSE during that period, it was only a reflection of the global picture.

Most, if not all markets in the world are still below their April 2006 level talkless of the peak in 2007, so it not perculiar to NSE. By the way the stock market has other components in addition to the banking sector and the downturn was general, eventhough it was triggered by the banks.

I posit that those loans were handed out for economically-useless activities such as procurement of Government contracts (which will be carried out anyway, whether or not those loans are given) rather than real industry.

Financing government contracts with bank loans is not useless to the economy. Infact, that's the way it should be. Major contracts that have effect on the economy should have a solid backing from a solid bank or consortium of banks.

Government contracts are massive all over the world and Nigeria in particular since most things in Nigeria are run by the government. Now that brings another issue to the fore. A lot of banks are owed a lot of bad money because government refused to pay a lot of their contractors for contracts awarded and executed.

(2.) During Soludo's tenure, the rate of growth of manufacturing in Nigeria continued to fall year on year, despite the so-called confidence and loans given out by the banks.

Everyone knows that the continuous decline of the manufaturing sector is as a result of the inability to compete with the imported goods as a result of the following culprits:

1. No reliable power supply
2. No cheap transportation caused by bad roads and fuel scarcity
3. Lack of security
4. Lack of reliable water supply.

So, I really think you are hitting below the belt when you insinuate that Soludo was to blame in any way for the decline in the manufaturing sector, unless I misunderstood your point.

At topic, Sanusi is now calling the shots and he has his supporters and the opposition alike. Even though I prefer bullish financial managers to conservative ones, I would give him the chance to chart the course he wants to follow and to show which direction he is heading to. I am yet to have a strong opinion as to where he is heading and how he plans to get there, but one thing I am sure of is that disparaging Soludo won't take us any where.

Ibime:

^^^Mugu, so when did you buy the shares. . . in June 2009?

What were you doing from Apr 2008 to June 2009 when you must have lost close to 70% of your value?

In January 2009 when your Oceanic share price touched N5, why didnt you complain then?

Just listen to yourself
A mugu for investing in my own country?

naijaking1:

Now, I get it. I am sorry I failed to notice your ignorance of basic tenets of capitalism a long time ago.
The market place, the fighting ring, and capital market is not a place to play judge of people's morality. You go to church or mosque for that. I recommend the most basic book about capitalism to you and Sanusi.

No wonder you agree with the guy that people should not own banks, own private jets, cheat on their wives, miss church every sunday, log on to indecency websites, own houses every where-while other Nigerians wallow in abject poverty, refuse to feed almajiris, or even fail to marry a 4th wife. ---- these are moral issues, and my friend, they're quite subjective, religious, and even cultural-based, but have no room in a democratic economy or capitalism.

Too much Islamic education rubbing off on you guys from Khartoum?

I was referring to those bankers in the US, you numbskull. even a child can see that from the way my words were structured. Has your antipathy for sanusi addled your brains?

You also display your lack of exposure: morality as a word is not synonymous with religion. It's best summed up as proper behaviour, and is influenced by either philosophy, culture or religion.

Nice of you to expose your views on sanusi's Islamic education, though. So we can add religious intolerance to your list of motives.

sometimes am angry when i read some stuff been put up  here , come on let be realistic, Soludo is a Fraud that is what Sanusi said, then what is the Police doing , what is the law waiting for , yet the acclaimed fraudster is busy in Anambra and yet he looks untouchable, we have  to be wise , at the end of the day  nothing will be done just as the James Ibori case , well as for me i just fold my hands and see how things goes

Its funny that some people find it convenient to ascribe any problems in the banking sector, or Nigerian economy as a whole, before june 2009 to external factors, while after june 2009, same problems shockingly become the fault of the new CBN governor

naijaking1:

Just listen to yourself
A mugu for investing in my own country?

Even if you are investing in your own country, must you reduce yourself to penury in the process? 

FACE:

Everyone knows that the continuous decline of the manufaturing sector is as a result of the inability to compete with the imported goods as a result of the following culprits:

1. No reliable power supply
2. No cheap transportation caused by bad roads and fuel scarcity
3. Lack of security
4. Lack of reliable water supply.

So, I really think you are hitting below the belt when you insinuate that Soludo was to blame in any way for the decline in the manufaturing sector, unless I misunderstood your point.

Nah, Im not hitting below the belt. . . Im showing these lots that under both Soludo and Sanusi, manufacturing was in decline. . . this is in retort to their arguments that Sanusi has not done anything to diversify from 90% oil economy. . . did Soludo?

FACE:

Financing government contracts with bank loans is not useless to the economy. Infact, that's the way it should be.

Lemme disambiguate. . . . they're useless in terms of adding to industrial output. . . they are not new additions to the economy. . .the Govt has added to the economy, the bank has only enabled a businessman to win the contract. . . . these contracts contribution to GDP has already been tabulated under the "Govt Spending" column of GDP. . .  

Whether this contract is carried out by A, B or C, it will be executed on Nigerian soil. Even if Julius Berger execute the contract rather than say Rockson Engineering (who might need a loan), the same amount will be tabulated toward our economy. If Ibime needs a loan to compete with FACE (who doesn't need a loan) for a contract, the loan Ibime received hasnt added anything to the economy.

They havent created anything. . . the Government created.

Contrast with a loan to a manufacturer who is creating actual goods in the economy either for export or for internal consumption.

FACE:

At topic, Sanusi is now calling the shots and he has his supporters and the opposition alike. Even though I prefer bullish financial managers to conservative ones, I would give him the chance to chart the course he wants to follow and to show which direction he is heading to. I am yet to have a strong opinion as to where he is heading and how he plans to get there, but one thing I am sure of is that disparaging Soludo won't take us any where.

Good approach. . .

lordbayor:

sometimes am angry when i read some stuff been put up  here , come on let be realistic, Soludo is a Fraud that is what Sanusi said, then what is the Police doing , what is the law waiting for , yet the acclaimed fraudster is busy in Anambra and yet he looks untouchable, we have  to be wise , at the end of the day  nothing will be done just as the James Ibori case , well as for me i just fold my hands and see how things goes

I have tried to steer clear of speaking up for Soludo, because I know he can speak for himself at the appointed hour.
I would rather focus on ways to move the nation's financial health forward, but since Sanusi has thrown the first stone, I have no doubt Soludo will respond, so, to everybody, I would just wait till we hear from the other side.

It would not be first time an OBJ appointee has been roundly condemned by his succeeding Yardua appointee. The game goes on, like a wheel, that is why I would like the politicians to do their thing while we, the common masses try and make a living, keep our jobs, and hopefully have a banking system that will follow the basic tenets of our economy-capitalism.

texazzpete:

I was referring to those bankers in the US, you numbskull. even a child can see that from the way my words were structured. Has your antipathy for sanusi addled your brains?

You also display your lack of exposure: morality as a word is not synonymous with religion. It's best summed up as proper behaviour, and is influenced by either philosophy, culture or religion.
Nice of you to expose your views on sanusi's Islamic education, though. So we can add religious intolerance to your list of motives.

Thanks for updating your store of knowledge about morality, now, what has it got to do with capitalism, again

naijaking1:

Thanks for updating your store of knowledge about morality, now, what has it got to do with capitalism, again

maybe if u read up on enron rather than on how to knock islamic scholars you will know morality's place where capitalism s concerned

@ Ibime
Thanks for your as always illuminating posts.

If Ben Bernanke were Sanusi , he obviously would not follow the part Sanusi is following now . For the fact that Ben Bernanke was announced as time man of the year shows how well he is managing the U.S economy in a recession . The same can not be said of Sanusi who so far has been clueless in his actions as the CBN governor and moronic in his attitude.

@Ndu-Chuks, ur attachment on this post as to court striking out the suit is just baseless and should not be used to support ur argument in this context. If u read that decision of the court, you will see that the court did not delve into the main issue rather the court just struck out the case on grounds of technicality, moreso when Sanusi & co as defendants were saying that the plaintiff does not hv locus standi to institute the matter. The court went on to rule that the plaintiff has locus standi bt went on to strike it out on grounds of tecnicality, so the main issue has not been touched, so my advise is that u cannot use it as a valid argument here.

Meanwile, Sanusi should rather concentrate on his work & see if he can make any single achievement bc the way things are going, that guy was an amateur who was appointed governor of the apex bank, thus his series of actions are doing more harm than good. Yaradua made a mistake, Sanusi would have been better for ICPC chairman or EFCC or even police rather than being i/c of controlling a county's economy.

Nigerian Commercial banks are not doing much now, mortgage banks arent doing anything like wise micro finance banks.

Its a pity that because of his actions, some Nigerian coys that are internationally recognised are even better of borrowing from foreign banks as we can see recently, whereas alot of Nigerian banks have money to lend but they are afraid of masquerade SANUSI.
This can equally be seen with the latest DROP in interest rates with respect to fixed/tenored deposits. Banks cant be paying you high interest on money they are keeping for you where they are not using that money as usual to do business. If u want to confirm, enter any bank and ask them how much they are paying now on fixed deposits, you were hear the discouraging interest rate that u never heard, eg UBA, First bank.

If Sanusi had managed First Bank for just one year, his incompetence would have been seen but the mafians hurriedly pushed him to the apex bank because he is prince of Kano my foot

I pity Nigerian economy anyway

I want to pray for Mallam Sanusi that May God Give him more than enough Grace to make the entire Banking industry better than what it was when he took over from Soludo

@mkpotu
What corporate experience (talk less of executive management) did Solduo have before his appointment?

CBN Unveils Four Pillars of Banking Reforms

This Day Front Page

The Central Bank of Nigeria (CBN) has unveiled its blueprint for the reform of the banking sector, which is built on four pillars.

The CBN Governor, Mallam Sanusi Lamido Sanusi, announced the blueprint during his pre-convocation lecture at the 28th Convocation of the Bayero University, Kano, at the weekend.

The four pillars of the reforms are: enhancing the quality of banks; establishing financial stability; enabling healthy financial sector evolution and ensuring that the financial sector contributes to the real economy.

Sanusi also clarified a newspaper report which quoted him as saying the rescued banks would have to pay back the bailout loans by May this year.

The CBN, he said, has not given any bank a deadline to repay the intervention funds and "it would be unreasonable to do so".

The exposure was taken in the first place to address a solvency problem caused by huge levels of provisioning that eroded the capital of banks caused by non-performing loans and bubble capital.


I doff my hat for the Master, Sanusi, sorry Mallam Sanusi. I told you guys to give him time. After which he can then be assessed. LOL[color=#770077][/color]

Any fair minded person in any of the "rescued" banks will readily acknowledge that the CEOs were really reckless. But it is common knowledge that the excessiveness was more of an industry-wide thing. Soludo sensed this and and started the correction process.

Yes sanusi intervened and gave all the reasons why he had to, but recent revelations as touching the path to recovery for these banks clearly show that SANUSI HAS A MORE SERIOUS AGENDA which is very far from "national good" or "depositor protection " that he mouths off easily.

Warri man say "na teh e go teh, one day stammerer must call him mama name"

The pro-sanusi guys need only picture what the assessment will look like 1 year after he leaves office , I mean even if his replacement is another aboki. The guy just dey pull stunt and heat up the system to cover up for the defieciencies he has in modern economic management.

I no wan talk too much.

Even in US and UK people are losing jobs, but it is well agreed that the problem started from past mismanagement. Afterall no one is blaming Obama for the current economic crisis. If nothing had been done with the way the banks were managed in nigeria, it is obvious that not only would people lose jobs but depositors would lose their money - when the banks collapse.
it is understandable for people affected (bank workers and shareholders) to feel bad, but it could have been worse and I think its better to have your bubble burst at the time the rest of the world is having the same.

To cut a long story short can anybody list sanusi's achievements since he took over?

The old saying in banking is "if you can't trust your banker, who can you trust"?  Without credibility with the numbers, it would be hard for the bank to lend money to businesses and vice versa,

Banks are only making loans to their cronies and shareholders using inflated numbers, "cooking books" and playing hide and seek with their non performing loans and on top of that manipulating their stock, In addition, most banks are now only looking at the capital markets to derive their revenues, IPOs etc

Let us be real, without building trust, sound banking practices, managed risks, the financial market will continue to be in bad shape.

@rasputinn
I don't think Sanusi is anti shareholders, foreign banks are not investing in Nigerian banks unless they can trust the numbers they are provided with. Also, Nigerian banks are dying for foreign currencies and access to that capital base would help any bank to grow. My bank has been trying to partner with Nigerian banks, but it has been difficult because of perceived "cooked books"