Beaf:

Talking of falsification, what can be more criminal and unprofessional than a Central Bank Governor simply discarding the gravity of his office and adding zero's to bank clients debts, publishing the false figures in the media and cooperating with EFCC to hunt both the guilty and the innocent. Major parts of the CEO bruhaha have already collapsed disgracefully like the sham arrangement it always was; one has got his bank back and the EFCC is embroiled in a $2 million extortion scandal with another.

All the while the banking sector sinks deeper into the avoidable morasse Sabusi built. They can't lend money (a fundamental function), but major domo is busy investing in the power sector. That man is bewildered, lost, mediocre and confused.

So Sanusi wrote the list himself? or he should have sat down to personally vet every digit on the list?
The list was generated from the banks, and the CBN only published it to help with the debt recovery efforts.

paddy_lo:

u have showed nothing. . . .

greenspan oversaw a period of irrational exuberance. . .easy credit and stock market boom

same with soludo. . . . .

when the inevitable recession hit,it was left to bernanke to handle the aftermath

same with Sanusi. . .

the difference is that bernanke had a phd and is a student of the great depression. . he knew the steps to take

sanusi on the other hand is an islamic scholar from sudan of all places

who is way above his league. . .and didnt have a clue, but is content with faking it till he makes it

meanwhile Nigerian graduates cant get jobs,and those with jobs are being fired

so yea Sanusi aint nothing like Bernanke
though i which he was

Wrong!.
- It was Soludo that induced the system with the N25Bn capitalization which forced the banks to raise money that they didnt have clear avenues to invest
- It was under Soludo that the banks got over exposed to the capital market
- It was under Soludo that the market crashed (in 2008)
- It was under Soludo that the banks were doctoring their statements to hide their losses
- It was under Soludo that the EDW was created to save the distressed banks
- Sanusi simply made the banks own up to their losses.

So while, guilty or not, you can accuse Greenspan of negligence or inducement, the system didnt crash under his watch. Bernanke didnt inherit a crashed system, but Sanusi did. Soludo was the both the Greenspan and Bernanke Pt 1 of Nigeria. It started and died under Soludo's watch, and sanusi is only cleaning up the rubbish left.

RoadStar:

Well you will not remenber because Bernanke did not go trading blames in the pages of the media. But if you must know, the sub-prime mess that led to the global finacial crisis all happened under Greenspans watch. Even he at a certain speech I remember accepted responsibility for the crisis.
Yet, he is still highly respected and credited with sucesses of the american economy during his term.

The system crashed when Bernanke was in office. Equivalently, the system crashed in 2008 when Soludo was in Office.

You are a Sanusi type of person. You see the world in black and white. Right or left.

It is possible to raise concerns without over-exeggerating, you can kill a rat without burning down the house.
It is possible regulate the sector without tearing it down.
But you are stuborn and no matter how anyone tries to make you see the point you still manage to miss it.

I asked the question because you made a statement that hinted that Soludo evaluation of the sector he inherited might not have been entirely true.

Initially Sanusi didnt say much about how we got into the problem, until some people started questioning his integrity, by saying the audit was concocted, that the banks were healthy, and that Sanusi was just providing a false excuse to execute a northern agenda.  Sanusi simply explained how we got into the current BS situation. It was the people that raised the questions that dug up the answers, or should Sanusi have kept quiet so that they can say the only reason he didnt respond was cause the allegations were true?
There is nothing exagerrated in his description of the problem, and he provided figures to back it up, but some will question those figures without providing alternatives. Abi how do you know something is false, if you dont know the truth.

But the increased lending capacity was real. The upsurge in the branches and employess were real.
The venturing into foreign countries was real.
Except for the exegerated state of the accounts as you allege.
Evenm at that the global financial sector was in crisis.
Even sanusis first bank declared loses too. So what are you saying ?
But for now the dead banks are not a figment of anyone's imagination.

Increase lending capacity that was based on dubios capitalization?
The lending capacity that was mainly exercised in the stock market, and oil & gas?
The venturing into foreign countries that had begun since the 1980s?

Again declaring losses is not a crime, but doctoring the books to make it seem you are making profits when in truth you have gone belly up is. The banks with interim management were illiquid after owning up to their losses. There is nothing dead about the banks, as non of them have gone belly up. The banks have simply become overly cautious as, having lost a lot of capital, they can no longer lend indiscriminately and hide their losses by doctoring their books. the problem has only been compounded by some elements spreading fear and doom in the sector, but all will return to normal in due time.

Wrong!.
- It was Soludo that induced the system with the N25Bn capitalization which forced the banks to raise money that they didnt have clear avenues to invest
- It was under Soludo that the banks got over exposed to the capital market
- It was under Soludo that the market crashed (in 2008)
- It was under Soludo that the banks were doctoring their statements to hide their losses
- It was under Soludo that the EDW was created to save the distressed banks
- Sanusi simply made the banks own up to their losses.

So while, guilty or not, you can accuse Greenspan of negligence or inducement, the system didnt crash under his watch. Bernanke didnt inherit a crashed system, but Sanusi did. Soludo was the both the Greenspan and Bernanke Pt 1 of Nigeria. It started and died under Soludo's watch, and sanusi is only cleaning up the rubbish left.

stop trying to be dis-ingenious,
the United states Financial meltdown and the Nigerian situation dont have to line up exactly for u to understand the point we are trying to make on here, jeez

just like the financial meltdown in 2008 didnt have to mirror the great depression exactly
for bernanke to understand what was wrong and what had to be done

u are just splitting hairs on here, let me rephrase all u have said above

- It was Greenspan that induced the system that repealed glass - steagal that unleashed the huge leverage ratios of up to 30 - 1 that finally sunk bear stearns/AIG
- It was under Greenspan that the banks got over exposed to CDOs/CLOs, MbS and so on
- It was under Greenspan that the seeds of the  market crash were sown
- It was under Greenspan that the banks were not adequately monitored/supervised, he actually subscribed to self regulation
- It was under Bernanke that the EDW was created to save the distressed banks

in essence u have said nothing,


u keep claiming bernanke didnt inherit a crashed system,but he did, Bernanke simply had to save the system,
for your info the US stock markets peaked in summer 2007 from where it began a slow motion crash
credit spreads of various big companies were already showing serious signs of stress by late 2007

u cannot remove sanusi from culpability,because like i told u he has to face up to his own actions
and he should stop pointing blames at the past. . . . . . .

u just refuse to see that his actions have done more harm than good,
if he were the US federal reserve chairman we would be in a depression right now

everything Soludo did, bernanke has done, Forbearance and Expanded discount window was the first tool the feds used over here
why do u think mark to market was suspended,  . . .u dont mark your capital down in times of severe stress
that is called pro-cyclicality, it is just retarded

what u do is give forbearance and time for the assets to rebound and time for the banks to raise private capital
which they are all doing over here, from Bank of America to Morgan stanley

what u dont do is publish names of debtors in national dailies, further spooking the markets
what u dont do is suggest jungle justice, in a nation that alledgedly has rule of law
what u dont do is unleash an ill thought reform process without a clear roadmap of where we are headed

because when mr geithner of treasury in conjunction with the feds rolled out an ill equipped plan to buy toxic assets in feb 2009
the markets tanked hard, and they had to go work on the plan for another couple of weeks b4 the markets were reassured

Mr Sanusi has chosen to be fool hardy and not think through his so called reforms
i wonder why u expect us to applaud such incompetence
when in saner climes he would have been long chastised

it is left for him to readjust his so called reforms to the biting realities of the day

paddy_lo:

stop trying to be dis-ingenious,
the United states Financial meltdown and the Nigerian situation dont have to line up exactly for u to understand the point we are trying to make on here, jeez

just like the financial meltdown in 2008 didnt have to mirror the great depression exactly
for bernanke to understand what was wrong and what had to be done

u are just splitting hairs on here, let me rephrase all u have said above

- It was Greenspan that induced the system that repealed glass - steagal that unleashed the huge leverage ratios of up to 30 - 1 that finally sunk bear stearns/AIG
- It was under Greenspan that the banks got over exposed to CDOs/CLOs, MbS and so on
- It was under Greenspan that the seeds of the  market crash were sown
- It was under Greenspan that the banks were not adequately monitored/supervised, he actually subscribed to self regulation
- It was under Bernanke that the EDW was created to save the distressed banks

in essence u have said nothing,

U missed the point that it was under Bernanke that the exposure of the banks led to losses. Similarly it was under Soludo that the Nigerian banks exposure led to losses, not under Sanusi. Sanusi is only clearing the rubbish and trying to salvage the left over.

u keep claiming bernanke didnt inherit a crashed system,but he did, Bernanke simply had to save the system,
for your info the US stock markets peaked in summer 2007 from where it began a slow motion crash
credit spreads of various big companies were already showing serious signs of stress by late 2007

Bernanke assumed office in February 2006 and what Bernanke inherited was an exposed (not crashed) system.  The system crashed under his watch. 

u cannot remove sanusi from culpability,because like i told u he has to face up to his own actions
and he should stop pointing blames at the past. . . . . . .

u just refuse to see that his actions have done more harm than good,
if he were the US federal reserve chairman we would be in a depression right now

what harm has he done than making the banks own up to their losses, or you would rather we pretend that all is well. The damage had been done before Sanusi took over.

everything Soludo did, bernanke has done, Forbearance and Expanded discount window was the first tool the feds used over here
why do u think mark to market was suspended,  . . .u dont mark your capital down in times of severe stress
that is called pro-cyclicality, it is just retarded

what u do is give forbearance and time for the assets to rebound and time for the banks to raise private capital
which they are all doing over here, from Bank of America to Morgan stanley

The EDW could have worked if Soludo had improved supervision like Bernanke did. Instead he left same executives in office, and 6 months later things were only worse.

what u dont do is publish names of debtors in national dailies, further spooking the markets

Firstly, the method was successful as over N100Bn has been recovered from the debtors. Secondly, what is your suggested effective alternative (write letters?  ) or you are just criticizing for the sake of it?

what u dont do is suggest jungle justice, in a nation that alledgedly has rule of law

He simply gave his opinion on how bad he felt the actions of the sacked executives were. The executives had already been removed before he made his comments. I dont remember a law barring the governor having his own opinion.

what u dont do is unleash an ill thought reform process without a clear roadmap of where we are headed

He is simply enforcing existing regulations. Do we need a road map for supervision or you would rather he makes grand plans that have no effectiveness in reality cos of lax supervision?

because when mr geithner of treasury in conjunction with the feds rolled out an ill equipped plan to buy toxic assets in feb 2009
the markets tanked hard, and they had to go work on the plan for another couple of weeks b4 the markets were reassured

Mr Sanusi has chosen to be fool hardy and not think through his so called reforms
i wonder why u expect us to applaud such incompetence
when in saner climes he would have been long chastised

it is left for him to readjust his so called reforms to the biting realities of the day

You call it incompetence, I call it effectiveness. For once we actually have a CBN governor that is willing to supervise effectively and you are suggesting he makes a roadmap before  enforcing regulations. It is only after he has cleared the rubbish out of the system that we will have a true picture of the sector and make plans that are relevant to where we are and we want to be (and not some grandiose schemes and castle in the sky with no anchorage on reality that characterized the previous regime).

You have still to explain why Soludo failed to tackle the first four problems he listed himself.

Seriously, is this exchange to be based on a point of view championed by the "Renaissance Professionals" whose position on issues relating to recent events in the Banking sector is well known (& advertised)? I believe the lawyers call it "after the fact". I call it "crying over spilt milk".

How I see it:-

1. Soludo appointed CBN Guv (as the sun rises)
2. Soludo consolidated (in good faith) but failed to regulate (motive unclear)
3. Unprecedented boom in asset prices occured (fueled by easy American credit)
4. Exponential rise in Oil price (our major forex earner); Banking Cowboys (most of them) went wild & took advantage
5. Crash follows (natural consequence of bubble; Oil price crashes, party's over)
6. Soludo opens EDW (in good faith i believe)
7. Sanusi appointed CBN Guv (things change)
8. Sanusi did what he did (stuff happens, premeditated or otherwise)
9. Renaissance Professionals among those sent to graze on "greener grass on the other side"
10. Banking sector saner & more reflective of reality (purely personal opinion formed from balance sheets viz economic activity)

insideview:

Seriously, is this exchange to be based on a point of view championed by the "Renaissance Professionals" whose position on issues relating to recent events in the Banking sector is well known (& advertised)? I believe the lawyers call it "after the fact". I call it "crying over spilt milk".

How I see it:-

1. Soludo appointed CBN Guv (as the sun rises)
2. Soludo consolidated (in good faith) but failed to regulate (motive unclear)
3. Unprecedented boom in asset prices occured (fueled by easy American credit)
4. Exponential rise in Oil price (our major forex earner); Banking Cowboys (most of them) went wild & took advantage
5. Crash follows (natural consequence of bubble; Oil price crashes, party's over)
6. Soludo opens EDW (in good faith i believe)
7. Sanusi appointed CBN Guv (things change)
8. Sanusi did what he did (stuff happens, premeditated or otherwise)
9. Renaissance Professionals among those sent to graze on "greener grass on the other side"
10. Banking sector saner & more reflective of reality (purely personal opinion formed from balance sheets viz economic activity)

This is the most sensible post on here by far. . .

^^^^
Bernanke cannot take all the blame for the subprime crisis. No one foresaw the coming situation.
Plus the US system or citizenery are not interested in mud throwing.
If your job is to fix a problem, you fix it.

What a responsible CBN governor will do on taking office is to paint the market positive and then go on to talk about improvements and express concerns were applicable.
This is combination will instill confidence and attract investors to the Nigerian markets.
That is what a Soludo & Bernanke did.
Not that what they said on taking over was their candid opinion.

Sanusi first action was to create panic in the markets.
It was laughable when after he had slandered Nigerian banks as being widely corrupt and insolvent, he was then acting all surprised that Nigeria was degraded by S&P.
All Nigerian banks experienced rigorous credit rating downgrades which has led to their inability to access previously established international credit.
Is this commendable by your standards.
@biina No one is saying sanusi is doing the wrong thing but he approach is totally wrong and damaging.

Bernanke, King and Soludo have one thing in common.
They kept on saying till the last minute that things were not very bad. (But we all know things were).
Can you guess why they did it ?
While Soludo was saying that the banks were sound.
At the same time he was creating EDW.

Same with king, who was availing about 60 billion pounds to RBS, LLoyds and Nothern rock all in secret.

Like Condoleeza Rice quoted in Abuja last month.
"The presidency is bigger than the president".
So also the office on the CBN governor is not about person in charge.

Soludo did what he had to do at the time.
His priority was invigorating the Nigerian economy through a vibrant banking system.
If he was still there I trust he would've done what needs to be done now but not the Sanusi way.
Same did bernanke.
Now the crisis has cooled Bernanke and King are talking about eliminating too big to fail Banks.
Emphasizing risk management.
Insurance against failure etc.

Sanusi strikes me as someone who's suffering from a complex.
Hes got nothing to prove.
Qualified or not, he's been appointed CBN governor and he needs to see the Banking sector as something he should protect and not fight against.
In 5 years Sanusi will be judged by his impact on the banking sector and not on the number of banks that did not fail !

RoadStar:

^^^^
Bernanke cannot take all the blame for the subprime crisis. No one foresaw the coming situation.
Plus the US system or citizenery are not interested in mud throwing.
If your job is to fix a problem, you fix it.

What a responsible CBN governor will do on taking office is to paint the market positive and then go on to talk about improvements and express concerns were applicable.
This is combination will instill confidence and attract investors to the Nigerian markets.
That is what a Soludo & Bernanke did.
Not that what they said on taking over was their candid opinion.

Sanusi first action was to create panic in the markets.
It was laughable when after he had slandered Nigerian banks as being widely corrupt and insolvent, he was then acting all surprised that Nigeria was degraded by S&P.
All Nigerian banks experienced rigorous credit rating downgrades which has led to their inability to access previously established international credit.
Is this commendable by your standards.
@biina No one is saying sanusi is doing the wrong thing but he approach is totally wrong and damaging.

Bernanke, King and Soludo have one thing in common.
They kept on saying till the last minute that things were not very bad. (But we all know things were).
Can you guess why they did it ?
While Soludo was saying that the banks were sound.
At the same time he was creating EDW.

Same with king, who was availing about 60 billion pounds to RBS, LLoyds and Nothern rock all in secret.

Like Condoleeza Rice quoted in Abuja last month.
"The presidency is bigger than the president".
So also the office on the CBN governor is not about person in charge.

Soludo did what he had to do at the time.
His priority was invigorating the Nigerian economy through a vibrant banking system.
If he was still there I trust he would've done what needs to be done now but not the Sanusi way.
Same did bernanke.
Now the crisis has cooled Bernanke and King are talking about eliminating too big to fail Banks.
Emphasizing risk management.
Insurance against failure etc.

Sanusi strikes me as someone who's suffering from a complex.
Hes got nothing to prove.
Qualified or not, he's been appointed CBN governor and he needs to see the Banking sector as something he should protect and not fight against.
In 5 years Sanusi will be judged by his impact on the banking sector and not on the number of banks that did not fail !

. The word "Panic" in recent financial history, isnt unique to our national lexicon. It was just delayed in its use viz topic under discussion.
. The Banker's WERE reckless (mustn't forget "allegedly" with shareholder & depositor funds
. There WAS a bubble in asset prices and a CONSEQUENT crash across board (Stocks, real estate, Commodities, etc)
. The Banker's did place some risky bets, they lost out, BIG TIME (native wisdom: when wind blow, fowl backside go show)
. It is NOT gospel, the path Bernanke, King, & Soludo chose to take. Not every nation towed that path. Let's review the efficacy of their approach in say, 5 years.
. People ARE (still) loosing jobs and homes in the US and UK, and most of the capitalist world for that matter (Except the BRIC Nations apparently). Stimulus, bailouts, and boondoogles notwithstanding.


Finally, i believe that things done in secret are rarely in the public's interest (especially when they help interests cover up mistakes that border on criminal ("allegedly".)