₦airaland Forum

nenginengi:
Hey digerati, I had my SRD recently, 14th of august to be precise, everyone in my group has received feedback and it wasn't good news, i am yet to receive feedback, How long does it take to receive news?

Most likely you are successful.

gReenmAn:
The really freakishly scary part is that all these actions by Sanusi had been predicted by some papers about 3 months ago.

That Vanguard article being bandied around collapses when faced with a similar 'prophetic' article by BusinessDay.
Did you know that BusinessDay also predicted this crisis more than three months ago:

http://businessdayonline.com/index.php?option=com_content&view=article&id=4671:who-saw-the-bank-crisis-coming&catid=123:special-report&Itemid=361

Isn't it funny how you guys ignore a more informed prediction by Businessday whose sole business is analysing and reporting the financial system and the economy as a whole.

Special Report
Who saw the bank crisis coming?
MONDAY, 24 AUGUST 2009 01:24 MAX AMUCHIE
In a much celebrated article entitled: ‘The Agenda-Setting Role of the Mass Media in the Shaping of Public Opinion’, Maxwell McCombs, a professor at the University of Texas, Austin, United States notes: “The power of the news media to set a nation’s agenda, to focus public attention on a few key public issues, is an immense and well-documented influence. Not only do people acquire factual information about public affairs from the news media, readers and viewers also learn how much importance to attach to a topic on the basis of the emphasis placed on it in the news. Newspapers provide a host of cues about the salience of the topics in the daily news – lead story on page one, other front page display, large headlines, etc. Television news also offers numerous cues about salience – the opening story on the newscast, length of time devoted to the story, etc. These cues repeated day after day effectively communicate the importance of each topic. In other words, the news media can set the agenda for the public’s attention to that small group of issues around which public opinion forms.”
The principal outlines of this influence had been sketched as far back as 1922 by Walter Lippmann in his work, ‘Public Opinion’. According to Lippmann, the news media are a primary source of pictures in our heads about the larger world of public affairs, a world that for most citizens is “out of reach, out of sight, out of mind.”
One can therefore appreciate the critical role of the media as the fourth estate of the realm, a tag that has stuck since Edmund Burke, the 19th century British parliamentarian and political philosopher assigned the fourth position to the media in a realm that comprises the executive, the legislature and the judiciary in that order. What we know about the world is largely based on what the media decide to tell us. More specifically, the result of this mediated view of the world is that the priorities of the media strongly influence the priorities of the public. Elements prominent on the media agenda become prominent in the public mind. If the media fail, the society is doomed. In BusinessDay this is taken seriously.
The agenda of a media house is found in its pattern of coverage of public issues over some period of time, a week, a month, an entire year. Over this period of time, whatever it might be, a few issues are emphasised, some receive light coverage, and many are seldom or never mentioned. It should, however, be noted that the use of the term ‘agenda’ here is purely descriptive. There is no pejorative implication that a media house like BusinessDay ‘has an agenda’ that it relentlessly pursues as a premeditated goal. The media agenda presented to the public results from countless day-to-day decisions by BusinessDay journalists and board of editors about the issues of the moment.
The beginning of this year presented a clear picture of the shape of things to come and BusinessDay seized it and foresaw the sequence of events that culminated in the sack of five chief executive officers of Nigerian banks on Friday, August 14.
For five days, February 16 to 20, BusinessDay ran a series on the Nigerian banking sector. It was a time that there was anxiety and excitement over the reappointment or otherwise of the former governor of the Central Bank of Nigeria, Chukwuma Soludo. The professor of economics was appointed in 2004 and his coming led to consolidation in the Nigerian banking industry, an exercise that saw banks move their capital base from a paltry N2 billion to a minimum of N25 billion.
Initially, the move was criticised, but when at the end of 18 months period 25 banks scaled the huddle, consolidation was hailed as the best thing that had happened to the Nigerian banking industry.
[b]However, for keen observers and for BusinessDay board of editors, there were challenges and miscues that needed to be addressed, questions that needed urgent answers and measures that needed to be taken to steer the Nigerian banking sector away from a path of destruction.[/b]It has become public knowledge since the landmark decision of the sack of the five CEOs on August 14 that the huge debts totaling more than one trillion naira that crippled the five banks had to do with loans related to the capital market and the oil and gas sector.
The present governor of the CBN, Sanusi Lamido Sanusi, while announcing the decision to sack the five managing directors, attributed the crisis in the banking sector to a failure of regulation over time. Long before then, BusinessDay had recognised the nexus between the margin loan crisis and weak regulation.
The paper’s lead story on Tuesday, February 17, 2009, was entitled: ‘How regulatory failure created margin loan crisis’. BusinessDay wrote: “A failure of regulatory oversight by the monetary authorities, charged with the responsibility to monitor and supervise how banks lend and disburse loans in the financial system, has been identified for the massive margin loan crisis hanging over the banking industry.
“The banking regulator, the Central Bank of Nigeria (CBN) is believed to have taken its eye off the ball while a number of banks moved recklessly into the capital market to perpetrate unwholesome practices designed and calculated to shore up the value of their shares in the capital market.”
We further went to report that the CBN only moved to play its oversight role after the crisis had deepened, and even when it did, its measures were targeted at general monetary concerns.
The next day, BusinessDay’s lead story was ‘Outrage as CBN lends to some banks at 11 percent’. The story reads: “The Central Bank’s expanded discount window through which it acts as lender of the last resort to the nation’s banks was opened a bit wider some months ago but access was initially fixed at an outrageously low eleven percent per annum.
“Almost a trillion naira was extended to the banks since September when access through the window was eased but some bankers thought it was unwise and indeed curious that the Central Bank will extend credit to banks at eleven percent interest rate at a time when deposits could command as much as 16 or even 17 percent.
“Expectedly a deluge of requests came in from the banks, some simply because they could not just sit there watching their competitors profit from a seemingly unusual handout from the lender of last resort.”
The story quoted a banker who said: “All over the world, when you reach out to the lender of last resort, what you get is at a premium. But here banks were to all intents and purposes being rewarded instead of being punished.”
On page 53 of the same edition, we ran a story entitled, ‘With blurred supervision, banks are back to cooking the books’. In the story, BusinessDay writes, “Declarations of bogus profits and failure to disclose toxic assets have crept into Nigeria’s banking system. And analysts, worried by the trend, say banking in the country has gone back to the old days when banks kept more than one statement of account for different purposes.“But the understanding of many was that the Central Bank of Nigeria would be up to the task of supervising and discouraging banks from cutting corners. Information reaching BusinessDay indicates that the apex bank may have been looking the other way while banks cheated their shareholders of billions of naira.”
On Thursday, February 19, 2009, BusinessDay came out with a lead headline ‘CBN’s lax supervision set stage for irregular financial reporting’. According to the report, CBN’s laxity in effectively monitoring financial reporting by banks had put it at daggers drawn with Nigerian Accounting Standards Board (NASB) charged with the task of ensuring compliance with set standards of financial reporting in Nigeria which is in line with international accounting standards.
For instance, according to the story, analysts expressed surprise over lack of details by the banks which supply only basic information as profits, earnings, shareholders’ funds at the exclusion of important details such as unsecured consumer credits, trade finance exposure, equity markets risk, corporate lending risk, sovereign fixed income as well as significant potential for foreign currency risk as point of large scale asset and liability transactions with international counterparts.
And on Friday, February 20, 2009, the last day of the series, which was three months ahead of the end of the tenure of Soludo as CBN governor, BusinessDay predicted that he would not be reappointed and took the public through reasons he was unlikely to get a second term in office.
Quoting an advisory by Eurasia, the leading political risk research and consulting firm based in New York, the United States, BusinessDay catalogued a number of CBN’s policy somersaults, condescending statements talking up the economy and flip-flops which together with other issues have helped to dent Soludo’s chances of re-appointment.
The report reads: “Soludo’s current five-year tenure ends in May. While Soludo gained widespread international respect for his leadership in pushing banking sector reforms and a massive consolidation of the Nigerian banking system under the Obasanjo administration, his recent miscues on the direction of inflation and currency policy have left his much vaunted credibility damaged. Whoever replaces Soludo from Yar’Adua’s inner circle is likely to be more strongly market interventionist than Soludo, who had until recently been fairly neo-liberal in his policies.”
Since Sanusi sacked Erastus Akingbola of Intercontinental Bank, Cecilia Ibru of Oceanic Bank, Okey Nwosu of FinBank, Barth Ebong of Union Bank and Sebastian Adigwe of Afribank, it has become public knowledge that they were the main beneficiaries of the controversial expanded discount window, had cooked books to hoodwink the public and their shareholders and exposure to margin loans. BusinessDay foresaw the present crisis and faithfully discharged its responsibility to the public, but nobody, not even the authorities paid attention.

mightlove:
@Jarus
Please, can you give us details on how iliquid and insolvent the five banks are. It seems you've got all the information on how iliquid and how insolvent the 5 banks are.

Read the papers and find details. The figures are all around. I'm sorry, I can't spoonfeed you.

This is only natural to follow

It is only a pity. I pity the man.

Abuuu, softly, softly

muhsin:
@Jarus,

Are you implying that you are still not married? That sounds far-fetched.

As single as 1

I will be as brief as possible because I have elaborately answered these questions in my previous posts since the issue started. You can check my past posts for my past comments. But let me run down summary answers again:

1. why did Sanusi not complete the whole audit exercise before sacking the bosses?
-High level politicking may get him stop the idea. Remember how Erastus almost succeeded in lobbying for the drop of the idea when he got wind of the impending removal. The run to Obj. Even till now, Sanusi said some big men are lobbying Yar'adua to order him to stop it
-Further delaying it may get the situation messier
-Sanusi had a fair idea of the most hit banks, being a former CEO.

2. Why did he release a half-baked debtor list, prone to dispute and debate?
I won't say it's half-baked, but it's inaccurate. I also disgree with his not taking his time to srutinize the list, I don't believe that makes the whole exercise insincere and rubbish

3. Does he have the power to just conclude and release 400 billion to banks without due process?
I dont know. But I have read legal people debate it. Some argue it's wrong, some say it's in order and doesn't need any NA approval.I have not seen any of the two camps quote a specific area of the constitution to back their point.  I therefore don't have enough info to form opinion on this yet.

4.a 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, b, violating the banking code of CONFIDENTIALITY?
a, It is not a crime but the question here is not whether they collected loan but the manner it was collected(no collateral etc). There is obviously something wrong here.
b, Yes, the law says customer-banker relationship should be confidential, but the same law gives 3 major exceptions: 1, Written permission of customer 2, Public Interest 3, Court Order. CBN's action is covered under exception 2. Removing the confidentiality veil is for public interest-to salvage an ailing financial system on the brink of collapse.

5. Is it a criminal offence to be found wanting in one's job or to take a bad business decision?
It depends on how you are found wanting. If it is for incompetence, it may not be a crime but if it for cooking books and falsification, it is a crime. The fired CEOs were accused of cooking books, among other things. It is therefore a crime.

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?
Where did you read this. But let me assume it's correct.
They wrote off the debt as bad two months ago. So what's bad in that? But the fired bank executives refused to do so.

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?
I have read virtually all his interviews and I know the statement you are trying to quote here. He did not say he wanted to see anybody go to jail, what he said was anybody that was found guilty would be prosecuted.

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?
If anything, Sanusi has even been lenient in his choice of words. The situation is worse. When the system is illiquid and insolvent, can you give better words to use. This is finance. No glossing the grammar. Finance terms have to be used.

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?
Take-over is one of the options, as is former owners bringing new funds and having their banks back. Whichever option will strengthen the system back will be adopted. There is nothing wrong in reviewing the options.

10. Did Sanusi's CBN not approve Oceanic banks financial result which was released last month? If there were problems, why was it approved
The financial statement was 18 month ended December 2008. Moreso, the audit that revealed the mess was a special audit.

Sack could be the first depending on the gravity. They cooked books, giving a false impression to unsuspecting public.

abdulaa:
it is a good idea, but how do you guys plan to perform the morgrib salat, is that place holy enough, i would have join if it is on Saturday,

you guys have a nice time

ma salaam.

If you read the thread from beginning, you will see that this had been discussed earlier.
There is a mosque just opposite.

mikeansy:
we have gone from making the banks stronger to selling them

Selling banks and making them stronger are not mutually exclusive.
If the new investors are ready to inject life into them and make them stronger. So be it.

nuzo:
As much as I share your patriotic zeal and the quest for good to triumph over evil, I will not hesitate to keep an open mind going by the way Nigeria has always been ran. I encourage you to add the later to your portfolio too.

I hope time proves Sanusi right, but what if it proves him wrong? How do we recover from such sabotage and disaster?

Thanks for your advice. I have always had open-mindedness in my portfolio too, but that doesn't mean I will sit on the fence and be neutral when there is a cause I believe in.
I believe in Sanusi's current cause, but of course, I'm not ruling out any wrongness in the future.

We always complain of having bad leaders but when someone that appears doing the right thing comes around, we suspect his moves. I don't have any cause to suspect him now because I'm convinced his actions are in order and, as far as I know, well-intentioned. I don't have any put artificial suspicion in my mind. If we continue to doubt any move that appears genuine, we'll not progress.

mightlove:
Well, i dont know why some of the posters like biina, otokx,fyneguy etc have refused to be objective in their reasoning.
T a very large extent, a good number of people are not against Sanusi's so callled 'clean up' of the banks. The problems here are
1. There are better approaches to doing this. He could have advised the CEOs to resign and would have avoided all the problems he has caused the economy and the only thiving industry in Nigeria. He keeps saying this is only a clean up which is meant to make the banks stronger and therefore the depositors and investors should not panic. All that would have been taken care of if he had not taken the approach he took. Why announce the sack/removal of MDs in the media? Doing that in my opinion is not in the interest of the investors and customers cos it would rather cause panick.
2. Who says that the 5 banks that have been cleared do not do insider trading, manipulation of shares, money laundering and all the other offences he claimed the 5 banks whose CEOs were sacked are into.
3. What was the basis of the audit on? Cos i know that if it is based on which banks manipulate shares, do insider trading and all, then i believe that the 5 banks that are cleared would not be cleared. So lets know what exactly these pple were sacked for. If it is based on the amount of non-performing loans then fine, but it really annoys me when i hear people talk about share manipulation cos all the cleared banks do the same.

Objectivity-personalized,
-Can you tell us the better approach? Do you know the gravity of cooking financial statements? Soludo used the so-called 'civil' approach and the problem got messier. Telling who to resign? Wanton breach of banking principles and you are saying they should not be fired. The truth is you have to take some decisive measures if you want things corrected.
I work in a popular  company and something similar happened recently. There were massive fraud, inefficiency and breach of controls detected by an audit and special investigation exercise in one of our subsidiaries, and indeed the most popular subsidiary. The Group Executives fired the entire senior management team(COO,ED Heads of Dept etc) of the subsidiary, not because they were the ones that perpetrated the fraud, but because all the fraud and irregularities were perpetrated by their subordinates under their watch. And these are people, some of whom have spent about 15 years in the company, people you see in newspapers and you will ordinarily think they are the owners of the company. I am very sure that for the Group executives to sack these people, people they had been wining and dining  with for 15 years, it must be in the interest of the business. They would have also thought of the consequences of such action(firing a generation of people that are vastly experienced in the business and indeed the engineroom of their business) and possibly thought of just warning them.

The point here is that, at some point pampering or slapping-in-the-wrist could be dangerous and you just have to take some decisive actions that outsiders will think are too drastic.

http://businessdayonline.com/index.php?option=com_content&view=article&id=4671:who-saw-the-bank-crisis-coming&catid=123:special-report&Itemid=361

Please refer to the above link and comment if Lamido's actions are not justified.
For me I think Sanusi Lamido is doing a good job.

BusinessDay newspaper predicted right.

Abuzola:
@everyone, Salamu alaikum. Thanks for your compassion. Would you tolerate a pistol at the gathering ? because i am very suspicious of the christian fanatic, seun might arrange some cops to arraign me. NL is a broad web farther than you can imagine and some christians even declared seeing me dead ,
By God who created me , i am not scared of death nor infidel rampage, hamza, Umar, usman and Ali were martyr. These were great of the greatest men. The best of death is martyr but at this early stage my career must not be ruin.


@bash and lagosboy: Am still young and under my parent roof, for me to go home past midnight will cause wary because of lagos insecurity. To sleep outside my house without tangible justification will lead to my parent wrath.


I just do not have the intention of going, maybe next year but not that i fear any attack, i just don't have it in mind. Please forgive me and oga jarus please no vex

. , .okay just one laugh

Epiphany:
Oh, did not see that. Jarus is already using it.

But seriously, i think people like Momodu should be told to shut up. Why is he trying to move from praise singing to critical political and social analyses? I have the sneaky feeling that he is writing all these things now in the bid to make himself available - one day soon - for political office.

We should not be surprised come 2011, if Dele Momodu runs for office (governor, senate, house of reps etc) somewhere. Worst case is that he becomes the mouthpiece of someone in power - like Segun Adeniyi is doing for Yar' Adua.

No, I'm not using that one. I'm spoilt with choices, but I've settled for DELE MOMODU: THE COLUMNIST AS A PRAISE-SINGER

So feel free to use any other title mentioned here.

adigun101:
Has anyone read this reported in vanguard. I have always been of the view that here is nothing to this than a genuine attempt to prune the banking sector of various ills even though , I dont agree it was done in the best manner.
This was reported in guardian way back in March 2009
http://www.vanguardngr.com/2009/08/26/group-plots-takeover-of-five-top-banks/

I don't go with Vanguard's prediction. BusinessDay did a more informed prediction: http://businessdayonline.com/index.php?option=com_content&view=article&id=4671:who-saw-the-bank-crisis-coming&catid=123:special-report&Itemid=361

FOR EVERY VANGUARD, THERE IS A MORE INFORMED BUSINESSDAY!

http://businessdayonline.com/index.php?option=com_content&view=article&id=4671:who-saw-the-bank-crisis-coming&catid=123:special-report&Itemid=361

Special Report  
Who saw the bank crisis coming?
MONDAY, 24 AUGUST 2009 01:24 MAX AMUCHIE
In a much celebrated article entitled: ‘The Agenda-Setting Role of the Mass Media in the Shaping of Public Opinion’, Maxwell McCombs, a professor  at the University of Texas, Austin, United States notes: “The power of the news media to set a nation’s agenda, to focus public attention on a few key public issues, is an immense and well-documented influence. Not only do people acquire factual information about public affairs from the news media, readers and viewers also learn how much importance to attach to a topic on the basis of the emphasis placed on it in the news. Newspapers provide a host of cues about the salience of the topics in the daily news – lead story on page one, other front page display, large headlines, etc. Television news also offers numerous cues about salience – the opening story on the newscast, length of time devoted to the story, etc. These cues repeated day after day effectively communicate the importance of each topic. In other words, the news media can set the agenda for the public’s attention to that small group of issues around which public opinion forms.”
The principal outlines of this influence had been sketched as far back as 1922 by Walter Lippmann in his work, ‘Public Opinion’. According to Lippmann, the news media are a primary source of pictures in our heads about the larger world of public affairs, a world that for most citizens is “out of reach, out of sight, out of mind.”
One can therefore appreciate the critical role of the media as the fourth estate of the realm, a tag that has stuck since Edmund Burke, the 19th century British parliamentarian and political philosopher assigned the fourth position to the media in a realm that comprises the executive, the legislature and the judiciary in that order. What we know about the world is largely based on what the media decide to tell us. More specifically, the result of this mediated view of the world is that the priorities of the media strongly influence the priorities of the public. Elements prominent on the media agenda become prominent in the public mind. If the media fail, the society is doomed. In BusinessDay this is taken seriously.
The agenda of a media house is found in its pattern of coverage of public issues over some period of time, a week, a month, an entire year. Over this period of time, whatever it might be, a few issues are emphasised, some receive light coverage, and many are seldom or never mentioned. It should, however, be noted that the use of the term ‘agenda’ here is purely descriptive. There is no pejorative implication that a media house like BusinessDay ‘has an agenda’ that it relentlessly pursues as a premeditated goal. The media agenda presented to the public results from countless day-to-day decisions by BusinessDay journalists and board of editors about the issues of the moment.
The beginning of this year presented a clear picture of the shape of things to come and BusinessDay seized it and foresaw the sequence of events that culminated in the sack of five chief executive officers of Nigerian banks on Friday, August 14. For five days, February 16 to 20, BusinessDay ran a series on the Nigerian banking sector. It was a time that there was anxiety and excitement over the reappointment or otherwise of the former governor of the Central Bank of Nigeria, Chukwuma Soludo. The professor of economics was appointed in 2004 and his coming led to consolidation in the Nigerian banking industry, an exercise that saw banks move their capital base from a paltry N2 billion to a minimum of N25 billion.
Initially, the move was criticised, but when at the end of 18 months period 25 banks scaled the huddle, consolidation was hailed as the best thing that had happened to the Nigerian banking industry.
However, for keen observers and for BusinessDay board of editors, there were challenges and miscues that needed to be addressed, questions that needed urgent answers and measures that needed to be taken to steer the Nigerian banking sector away from a path of destruction.[/b]It has become public knowledge since the landmark decision of the sack of the five CEOs on August 14 that the huge debts totaling more than one trillion naira that crippled the five banks had to do with loans related to the capital market and the oil and gas sector.
The present governor of the CBN, Sanusi Lamido Sanusi, while announcing the decision to sack the five managing directors, attributed the crisis in the banking sector to a failure of regulation over time. [b]Long before then, BusinessDay had recognised the nexus between the margin loan crisis and weak regulation. The paper’s lead story on Tuesday, February 17, 2009, was entitled: ‘How regulatory failure created margin loan crisis’. BusinessDay wrote: “A failure of regulatory oversight by the monetary authorities, charged with the responsibility to monitor and supervise how banks lend and disburse loans in the financial system, has been identified for the massive margin loan crisis hanging over the banking industry.
“The banking regulator, the Central Bank of Nigeria (CBN) is believed to have taken its eye off the ball while a number of banks moved recklessly into the capital market to perpetrate unwholesome practices designed and calculated to shore up the value of their shares in the capital market.”[/color]We further went to report that the CBN only moved to play its oversight role after the crisis had deepened, and even when it did, its measures were targeted at general monetary concerns.
The next day, BusinessDay’s lead story was ‘Outrage as CBN lends to some banks at 11 percent’. The story reads: “The Central Bank’s expanded discount window through which it acts as lender of the last resort to the nation’s banks was opened a bit wider some months ago but access was initially fixed at an outrageously low eleven percent per annum.
“Almost a trillion naira was extended to the banks since September when access through the window was eased but some bankers thought it was unwise and indeed curious that the Central Bank will extend credit to banks at eleven percent interest rate at a time when deposits could command as much as 16 or even 17 percent.[color=#006600]“Expectedly a deluge of requests came in from the banks, some simply because they could not just sit there watching their competitors profit from a seemingly unusual handout from the lender of last resort.”
The story quoted a banker who said: “All over the world, when you reach out to the lender of last resort, what you get is at a premium. But here banks were to all intents and purposes being rewarded instead of being punished.”[color=#770077][/color]On page 53 of the same edition, we ran a story entitled, ‘With blurred supervision, banks are back to cooking the books’. In the story, BusinessDay writes, “Declarations of bogus profits and failure to disclose toxic assets have crept into Nigeria’s banking system. And analysts, worried by the trend, say banking in the country has gone back to the old days when banks kept more than one statement of account for different purposes.“But the understanding of many was that the Central Bank of Nigeria would be up to the task of supervising and discouraging banks from cutting corners. Information reaching BusinessDay indicates that the apex bank may have been looking the other way while banks cheated their shareholders of billions of naira.”
[b]On Thursday, February 19, 2009, BusinessDay came out with a lead headline ‘CBN’s lax supervision set stage for irregular financial reporting’. According to the report, CBN’s laxity in effectively monitoring financial reporting by banks had put it at daggers drawn with Nigerian Accounting Standards Board (NASB) charged with the task of ensuring compliance with set standards of financial reporting in Nigeria which is in line with international accounting standards.[/b]For instance, according to the story, analysts expressed surprise over lack of details by the banks which supply only basic information as profits, earnings, shareholders’ funds at the exclusion of important details such as unsecured consumer credits, trade finance exposure, equity markets risk, corporate lending risk, sovereign fixed income as well as significant potential for foreign currency risk as point of large scale asset and liability transactions with international counterparts.
[b]And on Friday, February 20, 2009, the last day of the series, which was three months ahead of the end of the tenure of Soludo as CBN governor, BusinessDay predicted that he would not be reappointed and took the public through reasons he was unlikely to get a second term in office.[/b]Quoting an advisory by Eurasia, the leading political risk research and consulting firm based in New York, the United States, BusinessDay catalogued a number of CBN’s policy somersaults, condescending statements talking up the economy and flip-flops which together with other issues have helped to dent Soludo’s chances of re-appointment.
The report reads: “Soludo’s current five-year tenure ends in May. While Soludo gained widespread international respect for his leadership in pushing banking sector reforms and a massive consolidation of the Nigerian banking system under the Obasanjo administration, his recent miscues on the direction of inflation and currency policy have left his much vaunted credibility damaged. Whoever replaces Soludo from Yar’Adua’s inner circle is likely to be more strongly market interventionist than Soludo, who had until recently been fairly neo-liberal in his policies.”   Since Sanusi sacked Erastus Akingbola of Intercontinental Bank, Cecilia Ibru of Oceanic Bank, Okey Nwosu of FinBank, Barth Ebong of Union Bank and Sebastian Adigwe of Afribank, it has become public knowledge that they were the main beneficiaries of the controversial expanded discount window, had cooked books to hoodwink the public and their shareholders and exposure to margin loans. BusinessDay foresaw the present crisis and faithfully discharged its responsibility to the public, but nobody, not even the authorities paid attention.

Remember BusinessDay has no other business than reporting and analysing the economy and the financial system.
I go with the BusinessDay prediction over Vanguard's because it is based on hard facts and figures rather than Vanguard's account which was was based on rumours and unsubstantiable.
BusinessDay, being a close watcher of the financial system, has been alerting us of this problem since February, running reports and analyses. Now tell me, if the Chief Economist of BusinessDay or any of its editors,all of them sounterners, had been appointed CBN governor, wont he have taken such decisions as Sanusi took. If Businessday, a financial system watch, could be aware of the enormity of what was going on in these banks, how much more Sanusi, a CEO of a co-bank.

Or is BusinessDay also pursuing a northern agenda?

[quote author=made.n.9ja link=topic=183675.msg4427867#msg4427867 date=1251310250]Son of new Ambassador to the US,Prof Tunde Adeniran charged wit rape in Maryland

https://www.nairaland.com/nigeria/topic-315335.0.html

I feel this is a very important topic for discussion as there are lots of morals and lessons to learn from it,[/quote]I humbly disagree with this topic been sent to frontpage.
We should be committed to rebranding Nigeria. This is unbranding. . .

biina:
I find it amusing (and a quite disappointing), that not one of the anti-Sanusi poster has proclaimed the innocence of the sacked executives. Rather they are focused on speculating as to the ulterior motives of the action.
If said executives are indeed guilty of malpractices should they not be sacked?

Sanusi (and anyone that has been a top executive in the banking sector for a substantial time), has a good idea of who the main culprits are of banking malpractices. The audit only serves to confirm suspicion and thus would have started from the most suspicious banks. To start otherwise, or waste time in taking action, is to lose his advantage and possibly the opportunity.

For those that argue of a northern buyout, Sanusi sacked the executive and not the shareholders, and so I dont see what is stopping same shareholders from appointing new executives. It only becomes an opportunity for a takeover, if the shareholders cannot put forward credible executives, and thus decide to pull their funds from the bank on the grounds that their interests cannot be protected. In which case, it is good riddance to bad rubbish.

If indeed Sanusi is simply protecting Northern interests, can same not then be said of his predecessor protecting southern interest (afterall no one was brought to book when Soludo was in office)? If Sanusi weeds out the southern bad eggs and ignores the northern ones, do we not only need to wait for a southern CBN governor to cull the remaining Northern weeds?

I am all for kicking out any bad eggs in the sector, and would rather we focus on suggesting policies that would ensure that the decay is not repeated, than speculate as to the ulterior motives of Sanusi or some phantom northern oligarchy.

What a fine input, especially the bolded!

Beaf:
There is no law that says loans must be secured with collateral. Loans can be given based on an individuals/firms worth or standing, loans can also be secured on business proposals/plans etc.

We are talking about billions here not thousands. How can you give somebody billions of Naira without securing it.
Ever heard of what is called Moral Hazard? If banks lend people money without security, there will be no incentive to repay. That is the whole essence of collateral.
This is the basic principle of banking these CEOs threw to the gutters.

Beaf:
Is it even legal to publish debtor lists? We need to be clear on that. Does Nigeria have any confidentiality laws and have they been broken?

There is something called 'secrecy of banker-customer relationship' in Business law. It forbids a bank from disclosing the details of a customer's transactions with it to a third party.
However, the law gives three major exceptions to this law:
1, Written permission of the customer: If the customer, in writing, approves that his account/transaction details be given to the third party
2, Public Interest: If disclosing the customer's account details/transaction is in public interest or if not doing so will jeopardise public interest
3,Court Order: If the court orders it or if it is needed as an evidence in court of law.

CBN's action is covered by EXCEPTION 2-Public interest!!!!

[quote author=must_a_far link=topic=314903.msg4427269#msg4427269 date=1251304324]Jarus would you please go ahead and publish your rejoinder anyway. i'll still want to read it. the title get enough juice to it. [/quote]I hope I'm chanced to sit down and write it this weekend. I was actually considering giving it title like DELE MOMODU: ABUSE OF COLUMNISM or DELE MOMODU: A COLUMNIST OR A PRAISE-SINGER? but later settled for that topic because those sound insultive.

javalove:
i need one too ooo

. . how much u go pay, make I give you the formula?

Let me start with this hilarious part:

mikeansy:
@Jarus
and by the way why does the poll keep changing lol? I hope someone is not cooking up the polls to reflect their premediated aim just like the CBN did with debtors list? lol

After boko haram comes 'cooking' as the latest slang in town. Everybody is cooking now. Sanusi accused the CEOs of cooking their books, you accused Sanusi of cooking debtors' list, and now cooking polls on NL.   Everybody is cooking now, but some people are expert cooks. . . .you know them  

Now to the serious part:

mikeansy:
@Jarus
1. I supported the appointment of Sanusi and still do not regret that support, I wished him well and still hope he becomes a successful CBN Governor better than all his predecessors. I am not particularly interested in his removal or replacement at this time but I reject his erratic decisions which for the sake of our country I hope that even he Sanusi comes to the realisation that this is not the way to go.

I hope you're saying this with sincerity. Were you there when we were debating Sanusi's appointment a couple of months ago? And did you say this?

mikeansy:
@Jarus
2. Secondly I will like to debunk the notion that EFCC 'jumped' and are trying to steal a lil bit of Sanusi's glory. I believe that the EFCC is misguided in its action on this issue but for the records they were invited into the process by his excellency CBN Governor Sanusi Lamido Sanusi.
What that tells me is that the CBN Governor does not understand that the EFCC has no role in this issue yet and even refused to seek wise counsel on the issue before acting. If that does not worry you Jarus, it does worry me a lot.

I'm yet to come across where Sanusi was reported to have invited EFCC. What he has said repeatedly is that they will prosecute the offenders and if found guilty, justice done.

ABUZOLA

You must attendi o

Adigbans:
Nanny?, na wa 4 u nigerians o, anything u get fed with, gets swallowed. i can say authoritatively na Nana was not a nany. nigerians use your senses please, ask questions, use logic. how old is she?how old are the children?

it was reported that she baby sitted Oboden Ibru, HABA!
yes, she owns a company on d list of debtors,that's true and proberly got the loan because she is a [b]"FAMILY FRIEND" to the Ibru family, so?[/b]how many people have not gotten favours and help just because we are close to someone in charge or know somebody who does?even in getting emplyment?

i will advise that nigerian publications actually fact find and do what is necessary instead of feeding the "NAIVE" nigerian populace.

Where is the collateral? That is the issue. Or is 'family friendship' the collateral?

ThinkRait:
@ Jarus,

Are you in the office? or u are at home?

If u are in the office, you are committing a crime against your employer?
Do u work for the private sector, or u work for CBN? U cant be working for the public sector cos if u were, u wont be at your desk at this time.
I guess u work in a company whose owner was listed as a debtor.

I advice u to stop stealing your employer's time.

This is both funny and well thought-out. 
U be witch. . .how u no say my employer dey among the debtors?
In any case, what is important is that I deliver in my responsiblity. And I'm doing just that.
Finally,let me be a typical Nigerian and use question to answer question:Where are you too?

mikeansy:
Can I first and foremost thank you for admitting that the EFCC has no business arresting non-executive directors.

I have always tried to be as objective as possible in my analysis. My take on the EFCC arresting the NEDs is that it is completing unnecessary and injustice. I do not know how NEDs will be liable for the offence of a running ED.

mikeansy:
I hope you will be courageous to also admit that the bullying and arrest of executive directors after their sack without giving them the 30days fair hearing as provided in BOIFA should have no place in a country that wants to progress and catch up with the rest of the world in the 21st century.
Yes we have our challenges but we do not need to remind the world that we are a bannana republic.

I'm totally against virtually all EFCC's actions on this issue. EFCC's treatment to these people appears unfair to me. In fact, even before court ordered the release of the detained bank chiefs, I did not approve of it.

But we should learn to differentiate Sanusi's actions from EFCC's. Sanusi's actions are what I find right, not EFCC's.
It appears the hitherto sleeping agencies,EFCC in particular, are now queueing behind Sanusi to share in Sanusi's rising popularity and be seen working. I hate it when some people try to share in another person's glory. Where was EFCC before?

All these said, I still believe in Sanusi and his decisions so far, save not taking his time to correct the inaccuracies in that debtor's list.

fellis:
Good for you.
50% completion of your faith is on its way.

abi o. . . .before mid next year insha Allah, all of una my brodas and sis 4 NL go come celebrate wt me

Abuzola, we don't accept your excuse o. You must attend o. Abi una dey fear