₦airaland Forum

On behalf of Rasputinn(who has been away on some natural mission) I wish all celebrants for last & this week many happy returns

@ debo,glad to see that you possess one of d hallmarks of a true gooner:disdain for 'em spuds

However it's not the best to have to face the season with very little enthusiasm arising from ,,,,,well arising from AW's antics

Banks shun CBN’s order on margin accounts
Posted Tuesday, September 9, 2008

With the recent Federal Government intervention in the capital market meltdown, depreciation in the prices of stocks in the market may not stop soon as banks have continued to shun the Central Bank of Nigeria’s (CBN’s) advice for a waiver to be extended to expired margin accounts to allow the market recover fully.



Signs from the market indicate that operators’ morale is still very low, despite the intervention of the government about two weeks ago. It was revealed that the banks have continued to defy the CBN’s advice which was agreed at a meeting with chief executive of banks, convened to seek solution to the persistent slide of share capital.



Market sources said the downward trends in the market might still remain because the banks had continued to sell off shares bought through margin facilities, which could not be redeemed by investors who got the loans to mitigate the loss incurred in the long period of the trend in the market.



Specifically, sources said the credit management units of the banks had persistently put pressure on their assets management units to recover loans given through margin accounts, thereby making the market to witness more divestment rather than purchase briefs from investors.



The sources disclosed that while the CBN advised banks to restructure loans from margin accounts to allow customers to continue to service the facilities as fresh loans in the interest of the market, the banks had discountenanced the agreement, forcing investors to forfeit their investments.



Margin facilities entail the bank to provide 70 per cent while the borrower bears 30 per cent of the cost towards facilitating shares purchase by corporate institutions and individuals in the capital market.



In a bid to stem the meltdown (persistent fall in the shares) in the capital market, the Federal Government had intervened through a parley with the management of the Nigerian Stock Exchange (NSE) and other stakeholders at a meeting in Abuja.



At the meeting, all stakeholders had adopted a number of measures aimed at stopping the slide of share prices, which lasted over five months, with a loss of over N3 trillion.



Some of the measures include the power of the office of the Attorney General of the Federation to issue an exemption to the provisions of the relevant sections of CAMA, to permit quoted companies to buy back up to 20 per cent of their shares to curb the spate of bearish trading in the market.



The CBN was also directed to take appropriate measures to ensure adequate liquidity within the system to oil operations in the capital market, while a capital market stabilisation fund is to be established, as an intervention instrument to stem the meltdown in the market.



Also, the commercial banks were advised to restructure existing facilities to aid operations of licensed stockbrokers, institutional and individual investors on longer repayment terms.



Both the Securities and Exchange Commission (SEC) and the NSE, all capital market operators, also agreed jointly to reduce the burden on investors by cutting fees significantly.



Already, the NSE, with effect from yesterday, cut its fees by 50 per cent. One per cent maximum downward limit on daily price movement would be allowed, while the current five per cent limit on upward movement is retained.



The NSE has also embarked on the review of its trading rules and regulations, particularly regarding listing of new issues of companies wishing to list their shares from private placements. - Tribune

Saturday is just around the corner,let's just keep our fingers crossed

Y'all are entitled to your opinions,God dey bless Him people dey go,those wey e dey pain ,make e dey pain dem dey go,if na suicide make dem commit

@ OP
48 laws of power my foot,why do you find it so convenient to believe that book that amounts to nothing more than imaginative literature
N E ways,I see there are so many lost souls here(OP inclusive)

Po Deep:
Idiot, he said FINNAN & RIISE, not Sagna, Clichy etc.

No mind am

Hi GUNNERS
This is Myself to the second order representing

new signings or no new signings,ARSENAL ROCKS

Peace y'all

My people,I greet you all
I am here on behalf of my boss