fenando po:

why are we so fast to castigate and ridicule sanusi?? these baks have no capital base, which has bee depleted. And if left to their own devices, they will go bankrupt soonest. I think we should applaud and encourage sausi for havig big balls ad cojones.

deenee:

It is very funny how people respond to posts. Anyway, to start with, licenses have not been revoked at least for now. The hard truth is that there is so much decay and rot in  these banks that, they are almost insolvent. Some of these banks even have negative balance sheet sizes and negative equity.

It is very difficult to get investors who will be interested in channeling funds into these banks because, it is almost impossible to conduct asset valuations for them as entities. Though a harsh move at this  point, but I in my opinion think it is a step in the right direction or would you prefer that these banks liquidate if they cannot get fresh injection of capital by September 30th?

The NDIC has only exercised its statutory rights and transferred ownership to bridge banks (a bank authorized to hold the assets and liabilities of another bank, specifically an insolvent bank. A bridge bank is charged with continuing the operations of the insolvent bank until the bank becomes solvent through acquisition by another entity or through liquidation). This is in the interest of the  shareholders and to ensure safety of depositors' funds. The CBN on the other hand has released a statement to reassure people that all is well.

For example, AMCON (asset mgt corp. of Nig) currently has troubles with creating the anticipated liquidity needed to revive the equity markets  because , they cannot determine the actual size margin loans created. When AMCON was to be enacted by law, banks were asked to carry out a due diligence and declare all margin loans, the amount declared was about 3-4 trillion. When AMCON conducted it own due diligence, it was discovered that the actual amount  was three times that size, with one of the aforementioned banks carrying a fours times the amount it declared!

It is the lack of transparency and inconsistency that has warranted this action. As my American friend would say it-would you prefer to  pick up the can now or kick it further down the road? Which ever way, you still have to pick it up one day'

I am only concerned with the manner in which the whole exercise was handled because it will just create a 'run' on these banks and further worsen their already dilapidated situation. However since the NDIC has woken up to its responsibilities and CBN is there to act as 'lender of last resort' then all should be well.

Mobinga:

Don't be ridiculous. AljHarem. Only a mad man would take actions without considering the welfare of others.

omaojo1:

For first and uba, I can comfortably say they are in the too big to fail category.

This is because they were not affected by the first examinatn that the present cbn mgt carried out.

Inter though an r8 is in a better stead; given the fact that they are circa the TIA stage of the process.

For whatever will happen, one thing is sure and it is that no depositor will lose a kobo.

ib55:

intercontinental bank is mergin wit access bank uba n first bank where never in trouble they r safe.

GoldCircle:

Don't mean to cause panic, but the implications are glaring. The job of the NDIC basically is like that of an undertaker! Though the supervise from time to time, their core responsibilities show up once a bank is in trouble. Moreso, it has been mentioned that the NDIC will run these banks as bridge banks until they are handed over to AMCON. This also implies that these banks now belong to the FG. Whatever the FG wishes to do with the in the long run will therefore have some political undertone. Again, CBN has sacked the management they appointed into these banks leaving the management in the hands of the undertaker. The undertaker can choose to hurriedly bury them or preserve their bodies for some time by embalming them and thereafter burying them at a later time. Bottomline - these banks are now the properties of the Federal Government of Nigeria!

aloy-emeka:

By the time Sanusi finishes with Southern operated banks, they will accept Islamic banking by force.

lastpage:

What does Sanusi's "score-card", as CBN Governor tell us?

The simplest indicator of the success or failure of a CBN Governor is the CURRENCY of that country!

When Sanusi came-in as Governor, Naira rate as as follows:

$1 = #125
1GBP = #230
€1 = 165   for the major currencies.

What of TODAY?

$1 = #158
1GBP = #256
€1 = #233

Now, note that the "crash" of the Naira is "as it is", despite the following:

a.)American dollar is at its lowest in terms of real value as a result of the recession, the debt and the seemingly unending trio of multiple wars, unemployment and political wrangling

b.) The Euro is also at its lowest as a result of the groups toxic debt/bail out of the 'PIGS' (Portugal, Ireland, Greece and Spain).
To add salt to the Euro's injury, Italy which is the second biggest economy within the E.U, is in tatters and "will" also collapse in a matter of weeks. These factors combined make it seems like the Euro as a single currency will either fail totally or some E.U states (like Germany) will have to opt out.

c.) The U.K has seen no growth for some time now, its income has shrunk drastically and the only song it is singing to its citizens (including its military complex!) is Cuts, Cuts and Cuts! Its in a quasi-recession. Its currency has also weakened.

All the above has ensured that all these foreign currencies are under-valued!

Now imagine, if the above where not the case? "Discount these situations" and guess what the "real value" of the NAIRA is, relative to world currencies!

If this is not enough "sign" to show any wary observer that the current leadership of the CBN is a colossal failure, nothing will, EXCEPT WHEN ALL OUR (Nigerians) INVESTMENTS ARE WIPED OUT!

lastpage:

Time will tell!
You can "confuse" some of the people, some of the time but you cannot "confuse" all the people, all the time!

Peeps have been telling us Sanusi was trying to save the banks from its present "management"!
Question is: Who appointed the "present management"? Answer: SANUSI himself!

All said and done, its not "what" Sanusi does or "How" he does it that matters, What matters is the RESULT!

What does Sanusi's "score-card", as CBN Governor tell us?

The simplest indicator of the success or failure of a CBN Governor is the CURRENCY of that country!

When Sanusi came-in as Governor, Naira rate as as follows:

$1 = #125
1GBP = #230
€1 = 165   for the major currencies.

What of TODAY?

$1 = #158
1GBP = #256
€1 = #233

Now, note that the "crash" of the Naira is "as it is", despite the following:

a.)American dollar is at its lowest in terms of real value as a result of the recession, the debt and the seemingly unending trio of multiple wars, unemployment and political wrangling

b.) The Euro is also at its lowest as a result of the groups toxic debt/bail out of the 'PIGS' (Portugal, Ireland, Greece and Spain).
To add salt to the Euro's injury, Italy which is the second biggest economy within the E.U, is in tatters and "will" also collapse in a matter of weeks. These factors combined make it seems like the Euro as a single currency will either fail totally or some E.U states (like Germany) will have to opt out.

c.) The U.K has seen no growth for some time now, its income has shrunk drastically and the only song it is singing to its citizens (including its military complex!) is Cuts, Cuts and Cuts! Its in a quasi-recession. Its currency has also weakened.

All the above has ensured that all these foreign currencies are under-valued!

Now imagine, if the above where not the case? "Discount these situations" and guess what the "real value" of the NAIRA is, relative to world currencies!

If this is not enough "sign" to show any wary observer that the current leadership of the CBN is a colossal failure, nothing will, EXCEPT WHEN ALL OUR (Nigerians) INVESTMENTS ARE WIPED OUT!

He can deploy all his P.R for all l care but l urge everyone to keep a close eye on how the NAIRA is nose-diving, same way the "value" of our assets are nose-diving!
No need for big grammar or some fancy words! And dont tell me he is "deliberately devaluing the naira"!
The naira is almost shyte, by itself.

May God help this country and save us from these silly experimentations and its "naughty Professor"

Just my take!

lastpage:

Time will tell!
You can "confuse" some of the people, some of the time but you cannot "confuse" all the people, all the time!

Peeps have been telling us Sanusi was trying to save the banks from its present "management"!
Question is: Who appointed the "present management"? Answer: SANUSI himself!

All said and done, its not "what" Sanusi does or "How" he does it that matters, What matters is the RESULT!

What does Sanusi's "score-card", as CBN Governor tell us?

The simplest indicator of the success or failure of a CBN Governor is the CURRENCY of that country!
[/b]When Sanusi came-in as Governor, Naira rate as as follows:

$1 = #125
1GBP = #230
€1 = 165   for the major currencies.

What of TODAY?

$1 = #158
1GBP = #256
€1 = #233

Now, note that the "crash" of the Naira is "[b]as it is", despite the following:

a.)American dollar is at its lowest in terms of real value as a result of the recession, the debt and the seemingly unending trio of multiple wars, unemployment and political wrangling

b.) The Euro is also at its lowest as a result of the groups toxic debt/bail out of the 'PIGS' (Portugal, Ireland, Greece and Spain).
To add salt to the Euro's injury, Italy which is the second biggest economy within the E.U, is in tatters and "will" also collapse in a matter of weeks. These factors combined make it seems like the Euro as a single currency will either fail totally or some E.U states (like Germany) will have to opt out.

c.) The U.K has seen no growth for some time now, its income has shrunk drastically and the only song it is singing to its citizens (including its military complex!) is Cuts, Cuts and Cuts! Its in a quasi-recession. Its currency has also weakened.

All the above has ensured that all these foreign currencies are under-valued!

Now imagine, if the above where not the case? "Discount these situations" and guess what the "real value" of the NAIRA is, relative to world currencies!

If this is not enough "sign" to show any wary observer that the current leadership of the CBN is a colossal failure, nothing will, EXCEPT WHEN ALL OUR (Nigerians) INVESTMENTS ARE WIPED OUT!

He can deploy all his P.R for all l care but l urge everyone to keep a close eye on how the NAIRA is nose-diving, same way the "value" of our assets are nose-diving!
No need for big grammar or some fancy words! And dont tell me he is "deliberately devaluing the naira"!
The naira is almost shyte, by itself.

May God help this country and save us from these silly experimentations and its "naughty Professor"

Just my take!