₦airaland Forum

mikeansy:
I honestly don't know who convicted this management as corrupt

I don't know which court did that.

so the determination of cooked books is now a judiciary matter? It is now lawyers (and not the CBN) that would determine if a bank's books are in order or if loans are being reported erroneously.
The management were found guilty of sharp practices by the CBN, hence their removal. It is not a judiciary matter.

mikeansy:
It would have been nice to see what progress he makes at FBN when he is the MD which means the bucks stops at his table.

As head of any organisation you should have the capacity to see things from different point of view not exclusively from  a risk and control management point of view. Sanusi has shown in his last two months in office that he is lacking in this capacity.

At the rate he is going he will run the economy down with his hot headedness and blind sturborness.

If that yard stick is applicable, then Soludo had no business being CBN governor given that he had never held an executive position prior in his career, talk less of heading an institution.

I do not know of which other relevant point of view that the CBN has ignored, so please feel free to share.

The guy is trying to save the banking sector from collapse, and here your are bruhahahaing about running the economy down.

I am not sure if you have read the CBN address, but if you have, I would like you to point out the first action that the CBN took that was wrong and offer the better alternate approach. cos personally I dont see what he has done that is wrong, so much that it warrants all the criticism.

dayokanu:
Can we call them a big league when only 4 teams can represent the league succesfully.

Braga disgrace Portsmouth last season 3-0

Hamburg pummeled both Man City and Aston Villa

Larisa eliminated Blackburn some years back

Udinese raped Tottenham last season

Aint this teams from the Best league

You and your selective comparism and opata yarns. Somebody needs to set u straight

How did Schalke04 end up in the UEFA cup when their mates were in the UCL? Was it not Atletico Madrid that sent them packing 4-1 in the qualifying rounds?
Bremen that got to the UEFA cup finals only got into the tournament after they failed in the champions league. They were beaten 3-0 at home by panathinaikos.
Dortmund was eliminated at their first hurdle by udinese
Schalke finished bottom of their group after being beaten 2 -0 in germany by Man City
Hertha Berlin could not manage a single win in 4 games and failed to qualify finishing 4th in a group of 5 teams
Wolfsburg were disgraced home and away 5-1 by PSG
Stuttgart was also disgraced home and away 4-2 by zenit
The only 2 german clubs to make substantial progress were Hamburg and Bremen, and Bremen had no biz in the uefa cup in the first place. They were supposed to be with their mates in the CL but were kicked out disgracefully.

The bundesliga is a sorry excuse of league, and you are in no position to question the quality of superior leagues.

So I beg stop with the misrepresentation of facts

dayokanu:
Mainz beat us yes!!!! Do you want me to remind you of what Ike Uche and his friends at Receativo did to Madrid? or the yearly getafe beating

Shouldnt you worry about Ronaldinho coming to the Bernebeu? Remember around the same time in 2005 what led to the applause at the Bernebeu?

talk about this season and stop yarning about the past

dayokanu:
when is the past when is the present? The present when Juve still whopped you at the peace cup You now went to gather part time footballers

vs Dortmund, Rosenburg, Toronto and some MLS team to boost morale. Madrid is a pile of self-service

Juventus  beat us in a pre-season friendly, when did Mainz beat una?
The sahmeless fellow still get mouth after im club could only manage 2 pts in 3 games.
No worry, na d same Juventus dey ur group for CL, so we go see how una go fare

see am Group A: FC Bayern München (GER), Juventus (ITA), FC Girondins de Bordeaux (FRA), Maccabi Haifa FC (ISR)
Na Juve go top that group, and Bordeaux have enough to clinch the second spot.

dayokanu:
If Bayern has a problem what do we now say about a club that hasnt gone past second round in 5 attempts

Leverlusen 3 madrid 0
Lyon 3 Madrid 0
Liverpool 4 Madrid 0
I wont count the number of times Bayern raped you without vaseline and even scored the fastest goal in CL history against Madrid not forgetting an 8-3 aggregate whooping.
Madrid is the joke of EUrope
Shitty club indeed!!!!

Stop living on the past and talk about the present. Wolfsburg is coming to town to whoop yer asses.
After the game, the banners will read VFL 'WhoozeYerDaddy' Wolfsburg

dayokanu:
Would all these buys deliver Madrid from the hands of their boss and bully Bayern Munich?
Would all these buys make Madrid go beyond the second round of CL this season?

Is it not a shame that Madrid was not seeded by UEFA for the draws? How are the mighty fallen

Juventus is coming, Lyon is coming, Liverpool is coming (See as biina dey fear)
How many teams wan dey rape you regularly?
ASHAWO team
You are turning to the Ashawo of Europe I thought only Bayern was allowed to screw Madrid I didnt know you have started opening your laps to Juventus, Lyon, Liverpool and even small boy Leverkusen

Madrid is the booty call of Europe

coming from the guy whose club's league campaign is about to be over, barely 4 games into the season
I beg carry your insanity comot jare- Arrant Madness from the Allianz Asylum

So DK, your club wey no get problem, needed a last minute sale from madrid to try salvage their season?
A bench warmer in Madrid is going straight into ur starting XI under 24hrs of his purchase
Bayern is nothing more than a dump site for madrid rejects

Krayola2:
It's Madrid, prudence is not their biggest virtue. They don't want the guy and they got rid of him. They dont give a shit about the[size=18pt] 5[/size] mil. . They just blew over 200mil for mega starts for bleeps sake. . u think they are worried about 10mil from a guy that doesn't move shirts off the racks and ain't bringin in no real$$ from image rights. FUKC ROBBEN!! If they want him back they will pay u 50mil for him and not think 2ce about it. That's how they roll.

Its your club that likes to pride itself on prudence etc etc. . .but when shit hits the fan e.g 2 points in nine. . .they panic, and turn into any other insecure club tryin to spend their way out of yawa. Heaven forbid a pebble lands on Robben's  foot, thats a season and a half down the drain right there . . . Madness at the allianz. 

what do u expect from the AA (Allianz Asylum)

Dont mind DK as we might even still get Ribery before monday, but preferred target is David Silva

dayokanu:
The whole summer was about how Madrid would get Ribery rather than get Ribery from Bayern, they actually lost Robben to Bayern

The joke is actually on you Madrid

I advise you hold on to your laugh. In exchange for Robben, Bayern have agreed to sell Ribery next summer for max of 20ME, but RM have now tabled a bid of 20ME + VdV and are waiting for a response from Bayern.

Gold-mind:
Atimes I wonder if this is the way Sanusi has led First bank or is he been manipulated by some Northerners? The damage his reform or cleansing has done on our country's financial sector is enormous. Who know how long it will take us to redeem our image. He has just used few months to destroy the trust Prof. Soludo built many years back. I strongly support that he and YARADULL should gooooooooo!

so the CBN providing access to more funds to corrupt management builds trust, while sacking corrupt management destroys trust?
Thats an interesting point of view.

Sneijder sad to leave Real
Wesley Sneijder insists he is looking forward to joining new club Inter Milan but added that his departure from Real Madrid had left a bad taste in his mouth.
Real are desperate to trim their squad and regain some of the money they spent on buying the likes of Cristiano Ronaldo, Kaka and Xabi Alonso this summer.
Despite establishing himself at the Bernabeu since joining from Ajax in July 2007, the 25-year-old found himself surplus to requirements and has signed a five-year deal with Inter for a fee thought to be around €15million (£13.2million).
The Dutchman claims that he was happy to stay and fight for his place in the Spanish capital but in the end he had very little say in his future.
"I'm going with my head high," he told Marca. "I'm going to a great team, there's no doubt about that.
"I've been very happy here but now I have to look ahead and focus on my new team.
"The truth is that I was very happy here, it's something that I cannot deny. It makes me sad to go but that's the way it is. That's life.
"Now the only thing I can say is that I'm happy. I'm changing one great club for another great club."
https://img.skysports.com/09/08/218x298/wesley-sneijder-real-madrid_2352734.jpg
[url]http://www.skysports.com/story/0,19528,11835_5516500,00.html[/url]

Bayern confirm Robben deal
Bayern Munich general manager Uli Hoeness has confirmed the club have agreed a deal to sign Real Madrid winger Arjen Robben.
Dutch ace Robben had been tipped to leave the Santiago Bernabeu over the summer following the lavish spending spree by Real president Florentino Perez.
He was linked with a move to Tottenham Hotspur, but the former Chelsea man had ruled out a return to the Premier League, saying he would only leave Real for a club playing UEFA Champions League football.
Robben now appears to have got his wish, with Bayern having agreed a fee of 25million euros (£22million) to sign the 25-year-old.
A four-year contract has been agreed and Robben is expected to undergo a medical on Friday morning before finalising his switch to the Allianz Arena.
"He is on the way to Munich," confirmed Hoeness. "It is right that we are interested in signing Arjen Robben.
"We have already reached an agreement with Real.
"He is one of the best attacking midfielders around in Europe and he has always been the player we wanted."
Hoeness also revealed that Robben could make his debut for Louis van Gaal's out-of-sorts side in Saturday's Bundesliga clash with defending champions Wolfsburg.
He added: "It is theoretically possible that he will play on Saturday.
"Our intention is for him to play on the right wing with (Franck) Ribery on the left, making our team even more attractive."
https://img.skysports.com/09/08/218x298/robbencropped_2346474.jpg
[url]http://www.skysports.com/story/0,19528,11827_5518012,00.html[/url]

dayokanu:
ROBBEN to Bayern, Deal or No Deal

I think he is on his way for 25-30M

mikeansy:
MD for how many months Less than 5 months if not 4.

What were his special achievements as MD

did he even stay long enough to formulate any strategy as MD at First Bank

so someone that was good enough to be appointed MD of FirstBank is not qualified to be CBN governor unless he has spent specific amount of time in office?
Before becoming GMD, he was FBNs Executive Director for Risk & Management Control. and GM at UBA, yet he is not qualified to head CBN?

adigun101:
I can see that you are not conversant with coporate activities as against regulators. I have experienced a small company which was invited by the HMRC in UK (regulatory body) because of irregularities which their audit process detected by them. This was due to disparities between their VAT takings (17%) , the company net income and declared profit and hence the amount of tax  paid, it also included payments made to the company which where conspicuously absent in the company books. The invitation was to the company directors and the company accountants which signed the conflicting statements. Even if you warned the company beforehand, when you come out with discoveries, there has to be a defence. This is the way things are and should be period. They must be allowed to defend allegations that has been brought about as a result of their findings. The CBN regulates but doesn't run banks there is more than a subtle difference , you need to get that into your head .

Wrong analogy. You make it sound like CBN sat down in their office, smacked their buttocks and decided to just sack the executives. No, the 5 banks attracted the attention of the CBN by their activities in the EDW. The audit was carried out (with the cooperation of the bank staff) to ascertain the true state of things. Now you expect the CBN to sit down with the executives that have been found guilty of sharp practices to defend what? Even though the banks themselves have not come out to dispute the figures published by the CBN. You seem to be mistaking the bank for the executives.

Sorry, but in the world I live in, no one is above the judiciary.Civil, executive or criminal every case can be thrashed out in court. Barrack Obama and Gordon Brown governments sacked the MDs of General Motors and RBS respectively only because the governments now wielded a controlling stake in those companies. They would never have or could have been able to do it if not for that.

Nobody is above the judiciary in judiciary matters! For example, the appointment and replacement of ministers is not a judiciary matter.
CBN sacking of the executive was done within its jurisdiction. It does not need court approval.
You can go to court to question if the CBN acted within its power, but you cannot question the sacking itself.

that doesn't change anything the share holders still have more at stake. have seen the relative figures of depositors funds as compared to the capital base of these banks.
I think you need to do some research. The total deposits at oceanic bank (22 billion thereabout) are nowhere near the about N100 billin that was pumped in. If that was the case the CBN would have been better of just liquidating the banks and paying off depositors to the last kobo. The CBN should also consider the even more critical effects this whole reckless approach will have on  the wider economy.

so who pays for the exposure to other banks in the interbank market? Those banks exposure, if properly accounted, has already eroded the share holder funds. The capital input is required to bring the banks CAR upto the minimum 10% required by regulation. Else when the books are genuinely reconciled, they will be distressed and have to be liquidated. Is that your preferred alternative?

WRONG ! Free markets don't necessarily mean the absence of regulation. Apart from the banking industry, all other sectors of the economy are under regulation. And regulation does not mean run companies or dictate to companies.

A market economy (often referred to as a free-market economy ) is an economy based on the division of labor in which the prices of goods and services are determined[b] in a free price system set by supply and demand[/b]
(Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism. Verso. pp. 57.)

A free market is a term that economists use to describe a market which is free from economic intervention and regulation by government, other than protection of property rights (i.e. no regulation, no subsidization, no single monetary system, and no governmental monopolies).
Within the ideal free market, property rights are voluntarily exchanged at a price arranged solely by the mutual consent of sellers and buyers. By definition, buyers and sellers do not coerce each other, in the sense that they obtain each other's property rights without the use of physical force, threat of physical force, or fraud, nor are they coerced by a third party (such as by government via transfer payments)
(Rothbard, Murray. The Concise Encyclopedia of Economics)

Why bring in ponzi shemes when talking about legitimate business just so as to support your point .Why dint you talk about the numerous failed banks. I will not even comment on that.

Because that is essentially what the banks were running. They were declaring no existent profits and taking in more money (via EDW and depositors) to fulfill existing obligations.
Tell me what is legitimate about cooking your books and declaring profits you didnt make? or was Madoff also running a legitimate business?

Without questioning or review? you need to rid yourself of dictatorship mindset. Regulatory body or not the CBN owes it to explain and defend its position even to the regulated.

Reviewed by who?CBN presented their findings - have you read it?
The CBN sets the metric for insolvency, and any bank found wanting is insolvent. It is fundamentals of regulation. Or would you rather the bank be left alone to determine when they are insolvent?

True but this is one of the drawbacks in a market oriented economy. the companies are run by the executives. Would you now support the CBN to run banks instead ? sacking executives willy nilly sends out the wrong signals and are not good for the banking sector and the economy as a whole.

The CBN has only appointed interim management teams. I dont see the problem with sacking executives who have mismanaged depositors funds and cooked their books.

By who ? The same courts which you claimed had no hand in the Issue ? When that happens, can the CBN stay away while their reports are used in the court of law? Mind you only the court has the power to prosecute not CBN not EFCC.

They are two separate issues. The CBN sacking of executives who has abused the trusts placed in them and doctored books is not a judicial matter.
The case of if said abuse was based on incompetence or for personal gains (in which case it becomes embezzlement) is to be determined by the courts. All other parties (like auditors) that may have been complicit, will be addressed in the course of the investigation by the judiciary.

I commend Sanusi's motives but his approach is very haphazard, reckless and unbecoming of a CBN Governor. We haven't even talked about the negative impact that will affect other sectors outside the banking sector long into the future.

Sanusi does not seem to be aware of the implications of his actions, asking investors to come in and invest, after giving the impression that Nigerian corporate sector is riddled with corruption, uncertainties and abrupt unexplainable interventions from government at anytime.

This I predicted is due to his inadequate exposure and inexperience to macro economic factors critical to running such an office.

Sanusi has been bold enough to clear out some of the bad eggs in the system and all he gets from Nigerian is criticism.
So you would rather he do it the old fashioned way and sweep the issue under the carpet, to save face (like the handling of the haliburton case).
The international community believes that everyone in Nigeria is corrupt, and its only moves like this that can show the world that the regulatory bodies will not shy away from dealing with errant behavior.

<facepalm> it is just saddening the way nigerians think at times. The good guy is now being made out to be the villian.
Sanusi is criticized at the expense of the executives who have acted inappropriately.

mikeansy:
Instead of formulating an economic policy Nigerians will identify with Sanusi will spend at least the next 24 months battling with this whole process in courts and playing the politics associated with it.

It does not matter whether he auctions these 5 banks this weekend in london or not.

We will spend more time talking legalities/politics than economics in the next coming months and all this is a direct result of one man's action who is only good at managing risk at departmental level not running any business or running a Nations regulatory body.

So a former MD of FirstBank is not qualified to be CBN governor?

[table]
[tr][td][center]Pool #1 (seeded) [/center][/td][td][/td][td][center]Pool #2[/center][/td][td][/td][td][center]Pool #3[/center][/td][td][/td][td][center]Pool #4[/center][/td][/tr]
[tr][td][center]FC Barcelona (ESP)[/center][/td][td][/td][td][center]Olympique Lyonnais (FRA)[/center][/td][td][/td][td][center]Olympiacos CFP (GRE)[/center][/td][td][/td][td][center]VfL Wolfsburg (GER)[/center][/td][/tr]
[tr][td][center]Liverpool FC (ENG)[/center][/td][td][/td][td][center]FC Internazionale Milano (ITA)[/center][/td][td][/td][td][center]Olympique de Marseille (FRA)[/center][/td][td][/td][td][center]R. Standard de Liège (BEL)[/center][/td][/tr]
[tr][td][center]Chelsea FC (ENG)[/center][/td][td][/td][td][center]Real Madrid CF (ESP)[/center][/td][td][/td][td][center]FC Dynamo Kyiv (UKR) [/center][/td][td][/td][td][center]Maccabi Haifa FC (ISR)[/center][/td][/tr]
[tr][td][center]Manchester United FC (ENG)[/center][/td][td][/td][td][center]PFC CSKA Moskva (RUS)[/center][/td][td][/td][td][center]VfB Stuttgart (GER)[/center][/td][td][/td][td][center]FC Zürich (SUI)[/center][/td][/tr]
[tr][td][center]Sevilla FC (ESP)[/center][/td][td][/td][td][center]FC Porto (POR)[/center][/td][td][/td][td][center]ACF Fiorentina (ITA) [/center][/td][td][/td][td][center]FC Rubin Kazan (RUS)[/center][/td][/tr]
[tr][td][center]AC Milan (ITA)[/center][/td][td][/td][td][center]AZ Alkmaar (NED)[/center][/td][td][/td][td][center]Club Atlético de Madrid (SPA)[/center][/td][td][/td][td][center]AFC Unirea Urziceni (ROU)[/center][/td][/tr]
[tr][td][center]Arsenal FC (ENG)[/center][/td][td][/td][td][center]Juventus (ITA)[/center][/td][td][/td][td][center]FC Girondins de Bordeaux (FRA)[/center][/td][td][/td][td][center]APOEL FC (CYP)[/center][/td][/tr]
[tr][td][center]FC Bayern München (GER)[/center][/td][td][/td][td][center]Rangers FC (SCO)[/center][/td][td][/td][td][center]Beşiktaş JK (TUR)[/center][/td][td][/td][td][center]Debreceni VSC (HUN)[/center][/td][/tr]
[/table]



2009/10 UEFA Champions League group stage

Group A: FC Bayern München (GER), Juventus (ITA), FC Girondins de Bordeaux (FRA), Maccabi Haifa FC (ISR)

Group B: Manchester United FC (ENG), PFC CSKA Moskva (RUS), Beşiktaş JK (TUR), VfL Wolfsburg (GER)

Group C: AC Milan (ITA), Real Madrid CF (ESP), Olympique de Marseille (FRA), FC Zürich (SUI)

Group D: Chelsea FC (ENG), FC Porto (POR), Club Atlético de Madrid (ESP), APOEL FC (CYP)

Group E: [/b]Liverpool FC (ENG), Olympique Lyonnais (FRA), ACF Fiorentina (ITA), Debreceni VSC (HUN)

[b]Group F: FC Barcelona (ESP), FC Internazionale Milano (ITA), FC Dynamo Kyiv (UKR), FC Rubin Kazan (RUS)

Group G: Sevilla FC (ESP), Rangers FC (SCO), VfB Stuttgart (GER), AFC Unirea Urziceni (ROU)

[b]Group H: [/b]Arsenal FC (ENG), AZ Alkmaar (NED), Olympiacos FC (GRE), R. Standard de Liège (BEL)

na_so:
What i find difficult is, if the CBN found out that these 5 banks were ditressed, why then did it run an audit for the 10  banks and not the five or all 24 banks? My answer simply is that sanusi  just needed to add 5 other banks to make it look like an audit when in the real sense conclusions were made on his preconceptions even before he became CBN governor. Secondly he did not make it an audit of 24 banks because it will be easy for people to do per comparison and see where he has faltered.

The 5 banks already showed signs of being insolvent based on the activities in the interbank market. Based on initial findings, the audit was expanded to all 24 banks to determine the true state of the banks. Already another batch of 11 banks are being audited.

I hear some say since Sanusi was an insider as MD of FBN he probably knew where the problem is and he attacked immediately. If that is the case he should have told us that he used his general understanding of the system  instead of feigning a proper audit.

Being an executive in the banking sector would make you privy to enough info to know who the likely culprits would be. Yet the 5 were selected for initial audit based on their EDW activities, and not his general understanding of the system. Though, his understanding of the system was one of the reasons that it is desirable to have someone like him as CBN governor, but it would be erroneous for him to act strictly on that.

One of the pro-sanusi post even argue that in the case of oceanic , the report signed by CBN was as at DEC 2008 and the CBN special audit was for MAY 2009. So if the CBN claims that the problems in these banks has been for eleven months and it signed a report on  14th JULY 2009( well into the audit exercise) and sacked the MDs in august, and people still see nothing wrong , then we have a problem.

It would have been wrong for the CBN to reject the filings prior to the audit being concluded.

The CBN has had its staff resident permanently in all banks since the beginning of the year, and at the end of every finacial year, audits the books of banks specially  before signing the report.  So what is sanusi saying?

Of course some CBN staff are also complicit in the act, and I expect them to be dealt with in due time. Already there are rumors that the CBN will be overhauled, starting with the board.

The CBN has doctored the list of bad loans for these banks to evade questions becuase like in Union bank a lot of government agencies are culpable. No one is asking questions.

Do you have any proof of said doctoring? or a credible list to compare against the CBN publication?

The issues have now graduated from liquidity ,bad loans, to share price manipulation, other forms of abuse etc and now CBN planned sale of the banks.

should they have ignored all the other findings? If new ownership of the bank would fix the problem, I dont see what the issue is.

Although the degree varies but I can tell you  that there is hardly any  bank in this country whose management will not be found wanting for this same vices if a fair audit is conducted. Yes I mean even the FBNs of this world. This is due largely to the poor regulatory framework of agencies like CBN,SEC,NDIC.  So do an audit of all the banks and show us the entire result including the bad loans in the banks that "passed".

The CBN has said there will be a comprehensive report at the end of the exercise. But that should not be an excuse to allow the confirmed bad management to fester.

As for intercontinental bank , we all know that there may have been bad management decisions like minimum deposit,hidden charges etc. However it is wrong to judge that solely  as a sign of distress . reports from intercontinental bank suggest that FBN of which sanusi was MD was largely responsible for the run on the bank early this year with the demarketing stuff.

So First Bank was cooking the books of Intercontinental and making sure that Intercontinental did not declare bad debts accordingly? when FBN itself is known to often write off bad debts on its books.
If Intercontinental have genuine grievances that are being brushed aside by the CBN, they should make the evidence available for all to see.

Now why is the CBN in such a hurry to sell these banks. abeg make we open our eyes.

So we should leave the banks in the hands of those that have been doctoring the books?

adigun101:
No one said that they should ignore their finding but that of the banks should not be ignored as well especially as a fallout of their audit. It is just like a policeman catching a criminal red-handed and saying that theres no need to charge him to court. And then the CBN not caring  to hear out the defense of these banks. Is that a credible/civil manner to tackle the problem?

Hear their defence? Their fair hearings were the filing they have been making to the CBN which have been discovered to be false. Again this is not a case in the court of law. The CBN is the regulatory body. The banks had their chance and showed no intention of coming out with the truth, before or after the CBN hearing. The findings of the banks should be ignored as they have been falsifying them in the past. The audit was to help the CBN find the truth, and here you suggest that they retrogress back to the lies.
So lets say the banks' present findings are contrary to the CBN's, what would you have happen then? go to court? sorry, but is not a judiciary matter.

You seem to forget that the board of directors and shareholders have a bigger stake in this whole issue. And I proposed this as a one of the possible steps that could have been exhausted before a careless and reckless actions of sacking MDs from the central bank. Where do you think you are! This is a free market economy. Moreover this is not NNPC or Nitel. Nigerians should be more responsible when it comes to coporate practice and due process in their actions especially when it is coming from government.

The most important stake holders to the CBN are the depositors and the public. Shareholders are secondary and that is why when a bank fails depositors are paid off before shareholders.

Do not abuse phrases like 'free market economy'. The banking sector is not a free market, but rather under the regulation of the CBN and thus cannot be left to 'free' run.

Executives in the sector have acted inappropriately, and the CBN has moved to duly remove them. Shikena.

I can see you are very inconversant with the coporate world. Throughout history companies fail as a result of not being able to meet the financial obligations of their creditors and investors. The banks still have the option of raising funds independently which havent even been exhausted. The CBN cannot just seize their licences just because they determined that they are insolvent especially if the MDs and board of directors dont agree. This is not dictatorship my friend, this is an open market economy. Mind you close to insolvency as determined by one party does not exacly mean insolvency especially to the affected party.

Again the banks have not been closed down, only that their executives guilty of mismanaging depositors funds, and sharp practices have been removed. Would you rather they be left in office to continue the dastardly act until the bank goes under (even though if the audit has already revealed that they are insolvent). Its like saying we should allow a Ponzi scheme to continue, cos it hasn't failed yet?
Insolvency is determined by the CBN as they are the regulatory body. If CBN says you are insolvent, then you are insolvent.

But the auditors have a legal liability to the banks. If evidence of missappriopriations are found, and the auditing firms found guilty of being complicit, the CBN has the power to at least initiate proceedings against them and invite them for clarification. You cannot sieze or liquidate a company without the involvement the companies auditors/ accountants. Go and find out !

Again the companies have not been seized or liquidated. The CBN has fired the old board that are guilty of sharp practices, and replaced them with an interim management. Change of ownership of the bank becomes an issue if the shareholders are seen to have been complicit with the sacked executives, which is relevantr when said executives control a major stake in the company, directly or through a proxy.

The complicity of the auditors would be determined as the investigation continues, but that is independent to CBNs function in supervising the sector.

Xavier.:
Where in the world do u appoint a new Central bank governor, within the same month conduct a review on selected banks (basis of selection no one knows), sack the MDs of those banks (based on the undiscussed result of the examination), inject unneeded funds and within the same month start shopping for new sets of owners for the banks?

I ve one word for the above 'Witch Hunting'

The 5 banks were suspected and subsequently audited because of their interbank activities, in which 4 were persistent borrowers and showed no signs of being able to fulfill their obligations, while the 5th was borrowing more than would be expected of it based on its filings. Said four banks have also (under the banner of the CBN interbank guarantee) continued to borrow from other banks, essentially putting the entire sector at risk. At the end of July, those 5 banks were responsible for 90% of the outstanding loans in the EDW, and they owed the interbank market N250BN+

Since the books of said banks were not found to be inline with the truth of their performance i.e. they have been doctoring their books, what would you have the CBN do? leave the same executives in office?

If staff of your company was doctoring the books what would you do? promote him?

Crude Oil:
I don't support Sanusi's actions on the banking sector. There were other ways to reprehend to the actions of the bank executives rather than embarrassing them publicly. These were individuals who have been in the banking sector for a very long time and have steered the various banks through both good and bad times. Sanusi is a banker, so are the others, I just can't help but believe that sanusi has personal issues with these bankers.
And of what need is the injection of 400 billion into these banks, when there debtors are already beginning to pay their debts.

so what do u suggest? executives that have been doctoring their books should be left in office? after mismanaging depositors funds and putting the finacial sector at risk, they should be asked to quietly resign? Its saddening that you expect people that are embezzlers to be treated with dignity. Would you ask same of a market thief? cos these guys are no different.

The 400 billion was to guarantee depositors funds and forestall panic withdrawal based on fears of the bank going under. Once the banks have recovered substantial parts of their loans, CBN will be able to withdraw said capital. Publishing of the list was to help bring pressure on the debtors to pay (and seems to be working).  As a regulatory body, CBN has no business buying shares in the bank, and would rather withdraw the banks license.The current management is only interim and is supposed to help right the bank.

Crude Oil:
The CEO of Union Bank was about to retire from the banking profession before Swanusi toppled his career. Was that necessary?

Nigerian are just shocking. So after mismanaging depositor's funds, the guy should have been allowed to retire in peace?
whats next? After a politician is found to have rigged his way into office and/or embezzled money in office, we should allow him to finish his tenure in peace?

Xavier.:
Jarus

Do u have evidences to prove that the sacked CEOs cooked books?

U need to see the frantic efforts now being made by various govt agnecies to gather evidences to back the claim previously made by CBN. One would expect that CBN would ve gathered all relevant facts before sacking or smearing anyone's image on the pages of National dailies.

In my humble opinion, this is a classic case of doing the right thing in the wrong way, at the wrong time and for the wrong reason.

If those non-performing loans have not been written off, then the executives are guilty of cooking the books.

naijaking1:
@biina
You're the one crying wolf, otherwise how do you support Sabusi against the 5 CEOs? If you and Sanusi had not cried wolf, maybe someone would have been more objective in evaluating and correcting any percieved shortcomings in our banking sector without resorting to this crude, brutal, and illegal way of changing the banks' ownership.

Meanwhile, every new available evidence pulls the rug off Sanusi's feet, and yours too.
https://www.nairaland.com/nigeria/topic-315416.0.html#top

Is it that you do not get the meaning of the phrase 'to cry wolf'?
You are the one crying wolf by spreading news of an impending takeover of the banking sector by the north, without any hard evidence to support it. and I dont get the point of the article you referenced.

Their Liquidity Ratios ranged from 17.65 per cent to 24 per cent as at May 31, 2009. (Regulatory minimum is 25 per cent).
All 5 banks had CARs below the regulatory required 10%, with the worst being 1.01%

adigun101:
You dont get it. The banks are not jus about their MDs.
THE BANKS should've been given time to disclose their real situations and remedy the  situations with the backing of the CBN on errant debtors.
If the bank where still found wanting by way of being isolvent or non-performing, the CBN would have been advised the boards of the Banks to remove the MDs. ,
There are many other ways in which this can be done. Just carry out a detailed analysis of banking and coporate sector interventions in history none would match the reckless haste at which Sanusi has gone about it.

This is hilarious.
A bank found guilty of doctoring its books should be given time to disclose its real situation.
If the banks had any genuine intention of accurate reporting, would they have been cooking the books?
Was the audit not carried out to determine the real situation of the said banks?
or the CBN should ignore the findings of their audit and instead rely on the 'real situation' disclosed by the banks?

So while you admit that the Banks are beyond the MDs, yet you propose as a solution that the board simply remove the MD? All the while depositors funds are continuously being mismanaged.
Given the dire situation of said banks, Sanusi was lenient in not withdrawing their licenses and closing them down.

Who do you think is right. The CBN, NBA president, bank auditors or you. You see this is what happens when there is no proper hearing from all parties involved. This is why fair hearing is very important else there is no credibility to his press releases. Even you know that there questions when the CBN tells you it audited 10 BANKS IN 2 MONTHS ! And then starts admitting to some mistakes afterwards.

The CBN and the Bank in question, as they are in the best position to determine if a bank is insolvent. The NBA president has no idea of what he is talking about, and has to rely on second hand information like the rest of us. This is not a court case. The CBN is carrying out its supervisory role and thus there is no issue of fair hearing.

I haven't, but i think it should be sought after by guess who. You got it right the CBN! And if they were complicit in the cover up, they should be liable as well. Because the courts will eventually ask for these documents. It will be a huge embarassment if these auditors start contradicting the CBN and IN COURT.

The CBN have carried out their audit and published evidence of their findings. The CBN does not have jurisdiction over the auditors. The banks and their auditors, have not come out with any evidence in support of their innocence, and yet you want us to worry about a possible contradiction in court?

mjbaba:
PRO-SANUSI PEOPLE,
Please answer my questions

1. why did Sanusi not complete the whole audit exercise before sacking the bosses?

why should he wait when he already had evidence against some of them. what would be achieved by waiting till the end of the audit except giving the major culprits time to hamper the process. I suggest that you read his address to understand why the action was necessitated against said banks.

2. Why did he release a half-baked debtor list, prone to dispute and debate?

what is half baked in the list. A  few typos in names and we want to discredit the list. There has been no evidence provided to counter said list, and none of the admitted typos by the CBN has changed anything substantial on the list. Rather some are speculating on possible errors and are (sadly) presenting it as an excuse to engender an illegality. We should not loose sight of the main picture and instead get embroiled in petty details.

3. Does he have the power to just conclude and release 400 billion to banks without due process?

what would be the due process? he has not bought shares in the banks but rather extended credit facilities against their tier 2 capital. essentially directly guaranteeing the deposits at the bank. That is fully within the capacity of the CBN.

4. Is it a crime to collect loan from bank? If loans are Non-Performing, is it not normal to write the debtors and demand a payup or regularisation before publishing their names, violating the banking code of CONFIDENTIALITY?

it is not a crime to owe money in itself, but becomes so if the bank's books are doctored to cover up said loans, and you are suspected of complicity in the act. If the loans had been written off, the books would not have been doctored. Instead the banks doctored the books to give the appearance of profitability, knowing fully well that writing off the debts will likely put them in the red. The values ascribed to some of the bank, if written off, would have wiped out the shareholders capital hereby making them insolvent.

5. Is it a criminal offence to be found wanting in one's job or to take a bad business decision?

It all depends on the motive behind said bad business decisions. Incompetence is usually not a crime, but embezzlement and abuse of office are. Whichever, that is an issue for the EFCC and judiciary to determine.

6. did first bank where Sanusi was ED and later MD not write off over 20Billion as bad debt just a couple of months ago? Was anyone sacked or arrested over that?

Writing off bad debts is the right thing to do, and no one can be prosecuted over it, except the shareholders decide to replace said executive.

7. Is it a matured and wise for a CBN governor to state to the media "I want to see some of the CEOs go to jail" even as they have not been found guilty of anything?

There is nothing wrong with the CBN wishing that people who have abused the trust of depositors go to jail. It is no differentt from most investors wanting Madoff behind bars. If it will come to pass is a different issue.

8. Does a CBN boss who knows what he is doing and really wants to instil confidence in the industry use words like "illiquid", "insolvent" in describing the banks?

Yes, if that is a true state. It will be disingenous for him to describe them otherwise, when they are actually unhealthy.

9. If the problem is that of bad loan profile and there is no ulterior motive, IS IT OK TO START CLAMOURING FOR THE TAKEOVER OF THE BANKS BY NEW OWNERS without the conclusion of the loan recovery efforts currently on-going? If the loans are recovered will the banks not repay the 400 Billion injected and continue with life under a new management? Must they be sold?

That depends on the current ownership structure of the bank. If said executives who are guilty of malpractices own controlling stakes in the bank, then the only way for a new management to be effective, is to effect a change in ownership of the bank, else it will just be jogging on the spot. Lets assume Ovia is found guilty of malpractices, how do you effect change when he still owns the bank?

10. Did Sanusi's CBN not approve Oceanic banks financial result which was released last month? If there were problems, why was it approved

To not approve it would be unfair on the bank, as the audit process was still ongoing. The CBN had to maintain status quo until they had sufficient proof otherwise.

Epiphany:
Lol. Kindly give me permission to use this. . . Hahahahaha

That would be at the discretion of Jarus

adigun101:
I dont have issues with the motives. But the manner of approach. You dont fix a house by burning it down. Causing widespread panic and denting banking confidence. As a policy maker one should know how to handle the markets. You are not running a government or a ministry here. This has to do with the wider economy where perception leads to confidence and confidence leads to economic activities and growth.
I would not blame your likes if you do not understand where im getting at.
And stop posting what Sanusi said. We need to hear from the board of these banks as well as their auditors. Many of which are of international repute.

What would have been your proposed manner of approach that would have yielded better results? To let them continue in office?

I posted a link to the CBN address to help inform others, and to counter the article posted earlier in which the NBA president erroneously claimed that none of the banks was insolvent.
I have not seen contradicting evidence from the banks executives and/or their auditors. If you have such, please post.

The CBN has posted their findings (which is not limited to the debtors list) that necessitated their actions. Anyone (sacked executives, shareholders, auditors etc) arguing otherwise should present evidence in support of their counter argument, and not just quoted denials in the newspapers.

Should the EFCC question all concerned to determine the extent of complicity?
Or why are people making an arrest seem like a prosecution.
There is nothing wrong in the EFCC arresting the directors and bringing them in for questioning. Anyone who had appeared voluntarily when invited couldn't have been arrested.
The directors should  be questioned, and set free if he/she is in the clear, but charged and prosecuted if found otherwise.