By Yinka Kolawole, Michael Eboh & Amaka Abayomi
LAGOS—Assets Management Corporation of Nigeria (AMCON) has appointed new managements and boards for Mainstreet Bank Ltd, Keystone Bank Ltd and Enterprise Bank Ltd, the three bridge banks set up by the Nigeria Deposit Insurance Corporation (NDIC) to take over the assets and liabilities of Afribank Plc, Bank PHB Plc and Spring Bank Plc.

A statement by AMCON stated that by the appointments which have been approved by CBN, Mr. Jacobs Moyo Ajekigbe, former MD of First Bank of Nigeria, becomes the Chairman of Keystone Bank, while Mr. Oti Ikomi was appointed Managing Director. Other officials of the bank are Shehu Abubarkar, Demola Adewale, Mrs. Yvonne Isichei, Dr. Shehu Mohammed, and Mr. Raphael Ereyi , all Executive Directors.

Mainstreet Bank Limited

For Mainstreet Bank Limited, Mr. Falalu Bello, former MD of Unity Bank, was appointed Chairman, while Mrs. Faith Tuedor-Matthews was appointed Managing Director. The Executive Directors are Mr. Kola Ayeye, Abubakar Sadiq Bello, Bolaji Shenjobi, Anogwi Anyanwu, and Roger Woodbridge.

Enterprise Bank Limited

Enterprise Bank Limited has Mr. Emeka Onwuka, former MD of Diamond Bank as Chairman, Ahmed Kuru as Managing Director, while Mrs. Louisa Olalokun, Mrs. Nneka Onyeali-Ikpe, Aminu Ismail, Niyi Adebayo, and Audu Kazir are Executive Directors.

Meanwhile, sources close to AMCON informed Vanguard that the staff of the three banks have been given two options – either to sign a bond in order to continue with the banks or get a severance package.


Reactions

Speaking on the CBN and NDIC action, Mr. Opeyemi Agbaje, Managing Director, Resources and Trust Company Plc said, “It is difficult to find justification for the CBN/NDIC action nationalising the three banks in question well ahead of the deadline set by the CBN itself.

“The CBN is likely to argue that since no offers were on the table, it acted now rather than later to prevent a worsening of the institution’s situation as the deadline approached. “This would then raise the question of why CBN itself made a public show of the deadline rather than communicate privately with the banks.

“I expect legal questions to arise regarding the propriety of CBN/NDIC action. I do not support nationalisation owing to the negative effects on the sector as seen from the 70s and early 90s and hope this nationalisations are a short-term “bridge” towards selling to private core investors.”

Shareholders Association of Nigeria

Shareholders under the aegis of Independent Shareholders Association of Nigeria (ISAN) have denounced the revocation of the licenses of the banks

After an emergency meeting, ISAN in a statement signed by its National Coordinator, Mr. Sunny Nwosu, called on President Goodluck Jonathan to declare an emergency in the nation’s banking industry to avert global concerns on Nigeria’s economic and financial status.

“The revocation of the operating licenses of three commercial banks, namely Afribank Plc, BankPHB Plc and Spring Bank Plc remains a calculated subversion of the nation’s economy and the great

people of Nigeria. The CBN’s Resolution of Recapitalization through Bridge Banks remains an attestation of failure or inept leadership by the current management of the apex bank toward finding a permanent answer to the nation’s induced banking problems.”

The association further noted that the nation’s banking crisis was self-induced adding that the CBN’s revocation approach would further impoverish the citizens and Nigerians ability to create wealth through long term savings window of the capital market.

“ISAN is now vindicated in its posture that the Assets Management Company of Nigeria (AMCON) was floated to re-nationalise commercial and quoted banks. By this action, the CBN has actualize the subsisting threat to revoke the operating licenses of banks whose shareholders challenge in law courts the apex bank recapitalization method. ISAN rejects the revocation of the banks operating licenses and would further meet to discuss the next line of action,” they stated.

In his reaction, Mr. Seye Adetunmbi, Chief Responsibility Officer, Value Investing Limited, said: “One thing that can not be disputed is that those banks CBN took over had issues. If one of them, Intercontinental Bank, has officially advanced in the merger with Access Bank; it underscores the reality of the states of those abused banks.

“Apparently, these three other banks could not breast the tape in the struggle and Federal Government intervened accordingly. Thus, I will give it to the decision makers on their intervention through the bridge bank initiative. They have the facts and must have weighed all options before resulting to this action.”

http://www.vanguardngr.com/2011/08/fg-appoints-mds-for-nationalised-banks/

Another method of North dominating Nigeria economy,