«Home

Does Sanusi Have A Hidden Agenda?unanswered Questions About Bank Mds’ Removal

THE Central Bank Governor, Sanusi Lamido Sanusi, yesterday made good his threat to remove banks Managing Director if found wanting.

So he announced the removal from office the Managing Director and Executive Directors of Afribank Plc, Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc and Finbank Plc.

(Mrs.) Cecilia Ibru (Oceanic Bank), Mr. Okey Nwosu (Finbank) and Dr. Bath Ebong.

At the press briefing to announce his decision which he said has the backing of the President Umaru Yar’Adua, Sanusi said, “I should also state at this point that the scope of the Special Examination was widened to cover all 24 banks. So far, we have concluded the audit of 10 banks including these five, the others being Diamond Bank, First Bank, United Bank for Africa, Guaranty Trust Bank and Sterling Bank. We have also commenced the next batch of 11 banks and hope to conclude them by end of August. All in all, we expect to conclude the audit in mid-September.

“The Central bank is requiring all banks to make appropriate provisioning for non-performing loans and disclose them. We hope that by the end of this quarter, all banks would have cleaned up their Balance Sheets. On the basis of the information available to us so far, we are confident that the banking system is safe and sound and we have dealt with the major sources of systemic risk.”

If the banking system is safe and sound and the ongoing audit of the remaining banks will end in mid-September, why is Sanusi in a hurry to cause panic in the system? By this action, he has unwittingly confirmed fears in some quarters that he has a hidden agenda to carry out.

The CBN governor has left one of the sick banks which market operators are saying has some particular regional affiliation untouched and has not by his own admission concluded the audit investigation in all the banks. Besides, the fact that the apex bank has injected N402 billion as tier two capital which will be sold to both local and foreign investors further fuels the fears that the CBN governor’s agenda is unfolding.

Before the appointment of Sanusi as CBN Governor, there were strong indications that anti consolidation forces were regrouping with the hope of dissembling the banks and forcing a take over of the top five banks in the country. The grand plan by the group is to cause panic and uncertainty in the industry and make the target banks look unsafe for depositors, just as it has happened now.

The aim, it was alleged, is to cause loss of public confidence in the banking industry and compel the Federal Government to move in by injecting funds. Observers further said the group ultimately plans to instigate government to take equity holdings in the targeted banks as Sanusi has announced.

Vanguard on its front page report early in the year had revealed that the group at work is made up of former bank owners who lost out during the consolidation exercise, a powerful clique in the present government, and some aggrieved persons in three of the six geopolitical zones in the country who felt left out in the consolidation exercise.

Presidency sources at the time disclosed that those who felt left out in the consolidation exercise are grieved and are up in arms to recoup what they felt they lost during the Obasanjo years.

Part of the plan hatched by the group which has played out was said to be to ensure that the former Central Bank governor, Professor Charles Soludo, did not get a second term. The plan, the source went on, was also to ensure that whatever gains that consolidation had was to be discredited.

This it was learnt was meant to force the President to act quickly in the appointment of a successor to Soludo as they anticipated that the president’s slow move may scuttle their dreams and cause the renewal of Soludo appointment for a second term which they achieved with ease.

The group’s second game plan is said to make Nigerian banks look unsafe in the eye of the banking public. It is said that they have perfected their game by spreading rumours that some categories of banks are unsound and are on the verge of collapse.

“They sent out text messages to individuals and account holders passing wrong information on their target banks. At the time, the group’s target was one of the high flying new generation banks where they have sent out several messages.

One of the text messages which one of the operators gave to Vanguard stated “— one of Nigeria’s high-flying banks is facing serious difficulties that could force it into liquidation before the end of 2009. The bank’s precarious situation is due to its huge exposure to toxic loans to stockbrokers and importers of petroleum products.”

Unfortunately for the CBN, the very bank in question at the time Intercontinental Bank is affected by the CBN pronouncement. There is certainly not anything anyone will tell the staff and shareholders of Intercontinental Bank that the CBN action was not pre-meditated and targeted at it.

Sanusi admitted that changing the bank management was not enough guaranty for the sound management of the affected banks for he said, “We are conscious of the fact that changing management alone will not resolve this problem. Consequently, the CBN is injecting a total of about N400 billion into these five banks with immediate effect in form of Tier 2 Capital to be repaid from proceeds of capitalization in the near future.

This injection is sufficient to resolve and stabilise all the institutions and enable them continue normal business. The injection of fresh capital by the CBN is a temporary measure as government does not intend to hold the shares for long and shall divest its holdings as soon as new investors recapitalize these banks.

Curiously Sanusi failed to say how long the interim management will stay in the affected banks and when new investors will be called in to recapitalise the five banks. He did not say what conditions the new investors will fulfil and what mode the recapitalisation will take.

Sanusi admitted that banking problems were not peculiar to Nigeria at this time for he said, “As we are all aware, the world economy has been hit by the repercussion of the financial meltdown that started with the sub-prime mortgage crisis in the United States of America and spread to Europe and other parts of the World.

This crisis has led to the collapse of many banks and other financial institutions, and even rendered an entire nation bankrupt, in Nigeria, the banking system appears to have weathered the storm due to a number of factors. Among these are the facts that our financial system is not strongly integrated into the International Financial System, as well as the relatively simple nature of financial products and strong capitalisation and liquidity of Nigerian banks.”

However, there are many who have been aware for a while now that whereas the system in general is likely to absorb and survive the effects of crisis, the effects vary from bank to bank. A few Nigerian banks, mainly due to huge concentrations in their exposure to certain sectors (Capital Market and Oil and Gas being the prominent ones), but due to a general weakness in risk management and corporate governance, have continued to display signs of failure.

Consequently, having reviewed all the reports of the examiners and the comments of the Directors and Deputy Governors, I am satisfied that these five institutions are in a grave situation and that their Management have acted in a manner detrimental to the interest of their depositors and creditors.

Therefore, in exercise of my powers as contained in Sections 33 and 35 of the Banks and Other Financial Institutions Act 1991, as amended, and after securing the consent of the Board of Directors of the CBN, I hereby remove the Managing Directors and the Executive Directors of the following banks from office with effect from Friday, August 14, 2009. affected banks: Mr. John Aboh – MD/CEO Oceanic International Bank Plc; Mr. Mahmud L. Alabi- MD/CEO Intercontinental Bank Plc; Mr. Nebolisa Arah – MD/CEO Afribank Plc; Mrs. Suzanne Iroche- MD/CEO Finbank Plc; Mrs. Funke Osibodu – MD/CEO Union Bank Plc.

Each of the above will head a management team that will include Executive Directors and Chief Financial Officers to be appointed by the CBN. This team is tasked with continuing the businesses of the banks as a going concern. I therefore appeal to the Boards of the affected banks, in their own interest, to cooperate with the newly appointed Executive Management.

“I will conclude by restating that,going forward, the CBN will not waiver in its desire to ensure that public confidence in the Nigerian banking system is maintained through appropriate disclosures and the reinvigoration of its policy of zero tolerance on all professional and unethical conducts. We will not allow any bank to fail.

However, we will also ensure that officers of banks and debtors who contribute to bank failures are brought to book to the full extent of the law and that all proceeds of infraction are confiscated where legally feasible”. The CBN governor is not done yet in the next few months he will release the next phase of his agenda.

The big question is can the Nigeria financial system stand the stress of some spending their life time to build institution while others idle away only to surface mid stream to take over such institutions? The next few months will give all of us the answer.”

http://www.vanguardngr.com/2009/08/15/unanswered-questions-about-bank-mds%e2%80%99-removal/

Avatar
Newbie
57 answers

Ibori cut short a family vacation and abruptly returned from South Africa last week to confront the CBN governor.  "Ibori is fully working with Aondoakkaa and Cecilia Ibru to stop Sanusi at all cost in the next few days," a source told Saharareporters in Abuja.

0
Avatar
Newbie

Bailout May Hit N1tr

The Central Bank of Nigeria (CBN) is currently considering the injection of more funds into some of the five undercapitalised banks whose managing directors and executive directors were removed last Friday.

The CEOs – Barth Ebong of Union Bank, Cecilia Ibru of Oceanic Bank and Okey Nwosu of Finbank, Sebastian Adigwe of Afribank and Erastus Akingbola of Intercontinental Bank – were fired by the banking watchdog on the ground of being “principal causes of financial instability in their banks and for acting in a manner that was detrimental to the interest of their depositors and creditors”.

The CBN appointed new CEOs to head management teams that will include executive directors and chief financial officers to be appointed by the regulator, pending when the banks are resuscitated and handed over to new managements.

In a bid to address the banks’ liquidity problems, the banking watchdog had last Friday injected a total of N420 billion into the banks but THISDAY learnt last night that the package may soon hit N1 trillion to put the banks on a sound footing and restore full confidence in them.

T[b]HISDAY gathered the initial funds were not sufficient to meet the needs of some of the troubled banks whose new managing directors have already intimated the CBN Governor, Mr. Sanusi Lamido Sanusi, of the need to pump in more funds because of what they met on ground.

Last Saturday, according to sources, the new helmsmen of these banks met with Sanusi in Lagos and tabled their respective challenges and financial demands, which the latter is currently considering.

There was a case of a bank whose share of the bailout package disappeared immediately it hit the bank’s account with CBN.

The bank, according to information, was already indebted to the CBN to the tune of N60 billion and other fellow banks to the tune of N70 billion through the inter-bank market - the window where banks borrow funds from one another to meet their immediate cash needs. Consequently, the bank’s account was thrown into a negative of N30 billion.

The new managing director of the bank was said to have told Sanusi that given this development, coupled with the anticipated panic withdrawal and the funds that would be required for operations, there would obviously be a need for more funds to be injected into the bank.[/b]

Meanwhile, the Nigerian Stock Exchange (NSE) yesterday placed a full suspension on the shares of the five banks.

With the full suspension, there will neither be movements nor trading in the shares of the affected banks. It is, however, not a punitive measure but a tool employed by an exchange to prevent share price manipulation or outright dumping.

Also, the NSE has said that its second vice-president and former Intercontinental Bank chief, Dr. Erastus Akingbola, remains a member of its board until there is a security report indicting him of any crime.

Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, who made this known in a chat with newsmen in Lagos, said the decision to fully suspend the shares of the banks indefinitely was borne out of a joint agreement by the CBN, the Securities and Exchange Commission (SEC) and the NSE to forestall investors or even the sacked bank chiefs from dumping their holdings in the banks.

Okereke-Onyiuke, however, said that the decision to suspend trading in the banks’ shares would be reviewed after two weeks.

On Akingbola, the DG NSE said that he was elected to the board of the exchange on a personal capacity as the chairman of Lagos/Ibadan zonal branch of the exchange and not in the capacity as the managing director of any institution.

She also said that until there is an established criminal report against him, he will be accorded the full privilege of a member of the council of the stock market.

Okereke-Onyiuke, while debunking claims that the CBN action was inimical to growth of the economy, said in a way the injected N400 billion into the banks would, beside having a positive impact on the capital market, “is also in the best interest of investors in those banks as it will check the collapse of the banks”.

Explaining the injected funds to the banks, the NSE DG said the money was meant for tier-two capital of the banks, to assist them in their operations and not for shareholders of the banks to share as dividends.

“It is not for shareholders to distribute. It is to shore up the porous nature of the banks, so that when a cheque is written by a customer it will be honoured,” she said.

According to SEC, which gave the directive to place the suspension on the shares, the new managements of the banks are expected to give the market a situation report at the expiry of the two weeks.

SEC’s Head of Media, Mr. Lanre Oloyi, said in a statement yesterday that the action of the CBN would strengthen the affected banks, the financial sector and invariably benefit shareholders of the banks.

Across the country, there were mixed reactions from depositors to the scenario in the banking sector. THISDAY reporters who monitored the developments mainly in the branches of the five banks that were affected, spread all over the country reported that the situation affected the banks, their branches and locations differently.

While some of the banking halls appeared deserted because of the use of the Automated Teller Machines (ATMs), in others there were long queues.

Normal Mondays usually witness long queues in the banking halls because of weekend expenses, but there were signs to suggest that yesterday’s queues were not normal.

http://www.thisdayonline.com/nview.php?id=151960

0
Avatar
Newbie

Zenith has no problem

0
Avatar
Newbie

Zenith has not been audited.

0
Avatar
Newbie

I FIND IT VERY DISTURBING THAT IN TRYING TO PROVE A POINT PEOPLE RESORT TO THE USE OF FOUL LANGUAGE IN A PUBLIC FORUM. IT IS A SIGN OF IMMATURITY AND INSENSITIVITY TO THE FEELINGS OF OTHERS.

I STRONGLY URGE THE PEOPLE INVOLVED TO DESIST FROM THIS ACT.

LETS ARGUE LIKE REASONABLE PEOPLE.

0
Avatar
Newbie

See my theory here:

http://www.nairaland.com/nigeria?topic=309802.msg4358351#msg4358351

Because a bank has a bad loan on its books is not a problem as long as they have enough capital provisions to remain solvent. The 5 defaulters obviously were hardly solvent as they relied on funding from CBN to stay operational.

Zenith and First Bank obviously proved they had the muscle to deal with their bad debts. There is no top bank in the world that does not have bad debt, it is their ability to survive without repayments of those debts that counts.

Investors love nothing better than transparency and good, competent governance.

0
Avatar
Newbie

my grouse with sanusi was the timing of these, why hastily announce in a draconian manner the sack of 5 ceos when a comprehensive audit f all the banks werent announced.why spare zenith. bad loans ,well tell me about the loan first bank where he presided over gave to adenugas failed bid $$$$, would keep my finger crossed though.i fear at a time the market is volatile, where foreighn investors are gradually coming back. the effect of this when our Fg is bancrupt of Morals, Leaders, and cash.

0
Avatar
Newbie

Prof. Aluko should name the banks that used the money for infrastructure? Were they not giving the money to the big men in the society that were dealing with oil, or competing on my jetty is bigger than your jetty, or giving loans to people, employees to buy shares of their own banks to raise the share price?

0
Avatar
Newbie

Read Sanusi's interview I posted on this page or last. These CEO's knew since October that they had done something wrong. They knew they will be caught after Sanusi mention that audit will be carried out. but instead of resigning they thought the typical Nigeria thing, run to he president and baba in ota to make sure we are not removed.

0
Avatar
Newbie

If you are being asked to resign otherwise the funds would not be provided to save your firm because they don't have confidence in you, then effectively you are being sacked!

If you refuse, the funds will not be provided and your firm would fail, so you lose your job anyway and even have more heat on you for being selfish and not sacrifficing yourself to save the firm after you f'ed up in the first place.

So mate, asking you straight up to resign is just an oyinbo gloss over of "Sir, you are fired!".

That is what happens in these western firms.

In Nigeria, the morons would not even have the principle to resign, they would run from one godfather to the next to step in and protect them. They will say it is their jealous enemies that are after them or it is because they are of one tribe or the other. So our having a law that beats this, technically, is what I call genius and we should be proud we are setting a lead for once, rather than imitating oyinbo stupidly and failing.

0
Avatar
Newbie

^^^^

i've said it before - go through the media reports , and you will find they had been given soft loans by soludo.

people with a sense of honour , integrity or shame would have resigned then. rather, they kept up the sham of best bank number one bank, even going as far as to organize awards for themselves.

if sanusi had given these non performers this cash injection without doing this, we'd be at the same spot six months later. we can see access bank and gtb chasing their debtors. oceanic and co have been silent all this while.

0
Avatar
Newbie

the move is draconian- that's the main problem here.

Sagamite- majority of the people you used as examples, were asked to resign.

There's a big difference between that and being forcefully sacked like a common burger flipper.

The underlying problem, as usual, is something we lack in Nigeria- understanding the basic concept of human rights.

0
Avatar
Newbie

Ordinarily this shouldn't be a problem (provided the Fed Gov actually bailed these banks out with billions of dollars, and own majority shares in them). These are private corporate financial institutions! They lose all that private stuff only if the government owns majority shares in them or gave that as condition for bailing them out(which the companies reserve the right to reject in a normal capitalist economy) , then everything becomes possible. It appears not the be the case here (we never heard that the government owns these banks or gave that condition for bailing them out, unlike what happened in the States). This action is only legitimized by the military decree re-codified Nigerian-style in 2007. This is really unprecedented and it may all be about the same "northernization" of everything in Nigeria.

The proof to this allegation will come in the form of replacements to these sacked managers. Mark my word, they will all or nearly be all northerners!

Let's just watch!

0
Avatar
Newbie

if you read the news or even other threads you will find that soludo already did this with the soft loans he was doling out.

at1$ 156 - 160N we have at least 2 billion dollars being injected.

if previous threads you've been following, you'd have haed all the crazy antic intercontinetal was pulling earlier this year - they had an 'ATM outage' on a weekend, they tried to upp the minimum account balance of depositors , it was clear they were in trouble.

GTB and Access are chasing virgin nigeria and AP respectively. going by the rumour mill, MS ibru loans were partly to her proxies - so how can she collect. you can be sure that the contractors building their head office are doing it with oceanic bank loan ( gotta love naija biz)

0
Avatar
Newbie

Then you will see all of them jumping and shouting that we should do the same.

We should only follow white men, never lead them.

0
Avatar
Newbie

In other not to create chaos in the market the American government did not openly sack the CEO's  of the companies it gave bailout money to but they were forced to resign which they did, Obama was visible angry when money meant for bailout was used to payout some of these CEO's, sanusi has the right by the BOFIA act to remove these people and they also have a right to defend themselves which unfortunately they weren't given, but the fact still remains that sanusi has the legal right to do what he did and the money injected into these banks are tier 2 money for just shoring up their bases NOT buying up the banks as some of you think, most of the banks were controlled single handedly by these people and even the board could not force some of them to go if they wanted to because they were all culpable in this, the CBN has the right to protect investor's money and i believe it took the right step regarding this action.

0
Avatar
Newbie

The German chancellor will sign into law a legislation dat will allow germany banking regulator to sack any unfit CEO

0
Avatar
Newbie

It is hoped that bank CEOs will behave more responsibly in a country noted for official impunity. Nigerians will be dumbfounded when the true revelation comes to light on what parcentage of these bad debts is directly traceable to these directors.

0
Avatar
Newbie

every voodoo banker must be chased out of town;Atuche and Elumelu watch your backs Sanusization is on the way.

Ibime, how far? Soboma don accept amnesty o.

gow you see the amnesty drama?

pls don't derail this thread.

0
Avatar
Newbie

  of global economic recession.

   Even at the early stage of the recession when Fredie mac, fannie mae, JP morgan and AIG were in financial kaput, Ben Bernanke and Henry

   Paulson quietly injected billions of dollars into these banks so as to prevent a total collapse of the American economy.Despite all the bail outs,

   how many of the Amercan bank and automobile CEOs were SACKED? To the best of my knowledge, Jim Wagner of general motors honourably

   resigned so as to pave a way for his company to recieve the bail out money, he wasn't SACKED!!

   

   But on a second thought, it's only in Nigeria where this kamikaze attitude towards sensitive national issues exist.

0
Avatar
Newbie

Financial experts give CBN knocks

By DURO ADESEKO, RACHAEL AGUNTA and DENNIS UGBUDIAN

Saturday, August 15, 2009

CBN Governor, Sanusi

Photo: The Sun Publishing

More Stories on This Section

Financial experts have expressed reservations about the take-over of five banks by the Central Bank of Nigeria (CBN), saying that such action would send shockwaves in the banking sector.

They said that the CBN should have stepped into the matter affecting the banks quietly instead of the brazen manner it was done.

Those who spoke are Prof Sam Aluko, former economic intelligence adviser to the late Head of State, Gen Sani Abacha; Prof Herbert Orji, former managing director of Progress and Lead banks and Mazi Okechukwu Unegbu, former president of the Chartered Institute of Bankers.

Prof Aluko said: “The dissolution of boards of directors of the five banks came as a shock. The Central Bank of Nigeria should not have done that. The CBN is expected to show confidence in the banking industry. The Union Bank is one of the outstanding banks in the country. I don’t think what CBN has done is right. They should have related with the banks confidentially and it should have been a matter between the CBN and the banks without making it public.

“The Federal Government pressurized banks to loan out money for construction and building, etc. The banks were compelled by government to loan out money to people to enable them to buy public assets. It is wrong for the CBN to wake up and sack boards of directors. You don’t just wake up and sack people. You should give them one, two or three warnings before you sack people.

“What the CBN has done portends dangerous trend to our public system. The banks were forced to take over weak banks. It is a hang-over of taking over weak banks.

The banks should now look inward and consolidate themselves. That a bank is large does not mean it is a good bank. They should look into their managerial and administrative structure. It is a hang-over of consolidation of banks.”

Speaking also, Prof. Herbert Orji said: “For the Central Bank of Nigeria (CBN) to dissolve the boards of directors of the five banks means they had market intelligence and that the new management will have more value than the existing board and management. The CBN feels that the risks aspect of these banks must undergo total re-engineering to meet international practice. Secondly, the CBN may also believe that the existing board and management have existed long enough and must have done their best and the banks need new people with fresh idea to come up and make their own contributions.

“Thirdly, the CBN probably expect the board and management to raise the necessary equity fund to replace the massive reduction in the equity profile of those banks as a result of non-performing risk assets.

“Finally, it maybe the CBN way of restoring banks under economic difficulty. The banks not currently affected should pay sufficient attention to existing prudential guidelines and requirement, with regards to weak asset management both nationally and globally.”

In his reaction, Mazi Okechukwu Unegbu said: “I think the Central Bank of Nigeria (CBN) needs to be a little bit covert in the way they handle this kind of issue. It tends to send wrong signal to the system. Publication can be very powerful. When it was published yesterday that one of the banks had problems, many shareholders acted in the stock market. What CBN has done is not unusual but the method adopted is wrong. The banks should have been invited and told to remove their boards and management and this would later be announced as normal management change to maintain confidence in the system.

“The Union Bank is a big and strong bank. The public should not see the five banks as dying and collapsing. The banks are not dying. What happens is that non-bankers destroyed the principle of banks. The banks should appoint creditable bankers to manage their affairs. Marketing alone is not banking. There are lots of conflicting interests to be taken care of by the banks. You have to take care of government, shareholders, maintain liquidity and take care of the interest of the global community. The banks should manage conflicts in such a way that there would be confidence in the system.”

0
Avatar
Newbie

Oh yeah? You got on this thread swearing and abusing because you thought bullying would cover your lies. It took me time before I started abusing you as well. Now you've started twisting an already twisted story again!

A liar is the closest thing to a thief.

0
Avatar
Newbie

I have no patience for ethnocentric bigots that only see things through an ethnic lense and never the objectivity lens. If you want to educate them, fine, I think insulting them and ridiculing their intelligence works better as their whole life is based on superiority by association and deluded perception of importance/achievement by such association.

In regards to the UK CEOS, mate, believe me, they were pushed by the state once they are seen as irresponsible. In most of the meetings government always ask for resignation if you are asking for taxpayers funds to allay anger of taxpayers.

We can not be trying that attempt of resignation request in somewhere like Nigeria because our people are not principled enough to resign on anything (even if you have a picture of them in embarassing positions doing rituals).

If the government do not sack them, important shareholders would not as long as there is a way to save there own funds 100% and leave ordinary Nigerians to bear the brunt, ala failed banks in the 90s.

Good job there is a law to sack them.

0
Avatar
Newbie

Sometimes i find it difficult that people as intelligent/matured as we all claim to be will chose to insult and name calling to air their view. Guys we can do better than insulting each other when such an important topic is being discused.

@Topic,

Sir Fred and Mr Applegarth were not ask to go for early retirement(They were not sacked) by Malvin King rather the Board of the two banks hence they are still entitled to their pensions but now at a reduced rate due to the age and not the circumstance they left.

What i don't understand from the action of CBN Gov is who owns the banks now and where and when was this fund (400B) made available. He might have good intentions but its only the end that will justify the means.

0
Avatar
Newbie

slowpoke, so you finally agree that the US government sacked the CEO of a private institution?

slowpoke, and £1.6bn is not really, really big even by western standard, talkless of Nigeria? What kind of slowpoke are you?

Fool, these is excluding the billions that have been used to bail them out in the last few months.

Cretin, you want a link? Here is one:

http://www.wired.com/autopia/2009/03/obama-to-wagone/

Now show me a link of a bank that the government had to bail out and left the management.

0
Avatar
Newbie

gay. You are so blind that you can't see the difference? Hint, hint GM had already been bailed out by US govt over and over with billions of US dollars (I know you're daft, but "billions" is really, really big). The govt owned GM, but I guess you're too silly to understand that! I'm still challenging you to provide a link to this:

A liar is the closest thing to a thief.

What a brainless fart! http://online.wsj.com/article/SB124385428627671889.html

0
Avatar
Newbie

common guys u dont expect everybody to be thinking at the same wavelength.

Can't you guys see what is going in America? Some people don't want free health care. To the extend that they recruited a Tory MP from UK to campaign for them. Saying that NHS is the worst thing that ever happened in Britain.

Some ppl are just like that. They never accept the truth nor want to be told they are wrong. They fight till they die

0
Avatar
Newbie

slowpoke, name a bank that the government bailed out and left the management in charge.

You want to demonstrate knowledge you don't have?

Obama even sacked the head of GM (a firm not holding public savings) before bailing out.

FOOL!

0
Avatar
Newbie

@Ayokunle07

Dem don pay una, abi? Agents of "rebranding".

0
Avatar
Newbie

@jay bee and Sag, I agree with you guys. I just wonder why people especially here in Nigeria would want to add any unintelligent twist to what's so obvious often inducing sentiments into a subject like this. Beaf probably attends the same church with Erastus!

0
Avatar
Newbie

What a fool you've turned out to be. You gave Western bank execs as examples, then lied that some of them had been sacked; you even provided names! Everything you said turned out to be a lie.

A liar is the closest thing to a thief.

Listen boy, pick your lies better next time. Mental midget.

0
Avatar
Newbie

Bruv, don't mind this fools. I will see you at 11.

0
Avatar
Newbie

Guy, stop making a fool of yourself. . . . Sir Fred the Shred as well as many others have been sacked by Mervyn King and Gordon Brown. . . . not to mention Obama sacking the CEO of general motors. . . . once again, I gbadun Sanusi for this move!

0
Avatar
Newbie

Unfortunately for you guys, I am very conversant with the stories you're trying to twist. Thats why I challenged you to provide links; I want to know where the bank of England or UK govt sacked any banker.

Everybody knows the UK is the worst hit country in this downturn, yet they didn't behave in these strange ways we're hearing from Nigeria.

I challenge you guy's to provide the links.

0
Avatar
Newbie

Extracts from the Independent website

How the mighty are falling. The rise and fall of Sir Fred Goodwin is the classic tale of vaulting ambition which o'erleaps itself, of hubris brought low by the very qualities which led to such stellar success.

After eight extraordinary years that have seen Royal Bank of Scotland (RBS) transformed from a dully reliable regional institution to the fifth largest bank in the world, Sir Fred's departure as chief executive is a condition of the lifeline offered by the bank's rescuers from the Treasury.

On the way out: Felled banking giants

*Sir Tom McKillop

The Royal Bank of Scotland's chairman will leave at the annual general meeting in April without a pay-off. He is out because he presided over the board that endorsed the ABN Amro deal. Critics say that his lack of banking experience made him unable to stand up to his chief executive. Sir Tom, from Dreghorn, Ayrshire, was chief executive of AstraZeneca until 2006.

*Lord Stevenson

The HBOS chairman is also being held to account for the collapse of the 300-year-old institution. The cross-bench peer will forgo his salary of £710,000 and, like his chief executive, will leave when the Lloyds TSB deal is finalised. He is suffering for his board's strategy to grow through over- reliance on the UK property sector and wholesale funding.

http://www.independent.co.uk/news/business/analysis-and-features/the-rise-and-fall-of-fred-the-shred-960336.html

0
Avatar
Newbie

@beaf

What does forceful resignation equate to?

do you know they sometimes send people on gardening leave?

They are effectively technical sacking IMO

0
Avatar
Newbie

It seems you are on a one man mission to skool this loons. Hope you going to save the remaining fire in ya belly for footie today sha cos we need you marshalling our defense.

Just to add to the quote, the UK government even went as far as harassing the RBS board so they can reverse fred the shred's excessive pension pot.

0
Avatar
Newbie

And so? What dependence does the mismanagement of this 5 banks have to do with the others?

What makes you think that has not been done since the months the have been going cap in hand to beg for funds from CBN?

Why not?

This is a moronic conclusion, derivation and conjecture!

Typical Nigerian half-baked, outspoken assertions.

0
Avatar
Newbie

Are you bleeping high??

Adam Applegarth - CEO Northern Rock

David Baker - Deputy chief executive

Keith Currie - Treasury Director

Andy Kuipers - Sales and Marketing Director

Fred Goodwin - CEO RBS

Tom McKillop - Chairman

Are you bleeping high? You think they would put money in those firms and leave the same guys that messed it up to manage it?

0
Avatar
Newbie

Matters arising

Why the haste to take the decisions when the so-called CBN audit has not been conducted in all Nigerian banks?

Why did Sanusi not invite the banks to show them the results of the so-called audit and ask them how they think they could solve the problem; for xample, giving them a deadline to recapitalise?

Why wield the axe so soon?

These are indications that Sanusi is following a script. He says CBN will call local and international investors to invest in the banks. Why not allow the banks themselves to look for the investors?

0
Avatar
Newbie

How on earth can a schooled person not know that CB has the power to sack bank CEO? Isn't ds well known? I'm disappointed @ pple putting fwd ds argument.

As regards dose arguing dat BOFIA was IBB's decree, fyi, it was amended in 2O03 and from BOFID(decree) it was changed to BOFIA(Act)

@topic,

I will try and get Vanguard later ds morning to see weda d article is d official opinion of the newspaper or an external article they published. I don't av any problem wt Vanguard for suspecting there is more to it than meet the eyes, but the Sanusi Lamido I know can not be a pawn in some people's political chess game. And moreover, anybody deeply following events in Nigerian banking system will know what Akingbola & Cecilia have been doing.Even a senior oga formerly wt Oceanic confirmed Mama's sharp practices. As for Akingbola, he should resign as CIBN president. I don't trust Jim Zenith and Tony UBA too. Jim has been strongly warned though.

0
Avatar
Newbie

Maybe you can decieve those who aren't aware and any sort of foul language you can lay your hands on. Tell me one manager or director that was sacked in any bank in the UK. Just one, I'm begging!

Private sector people sacked by IBB's decree, in a democracy!

0
Avatar
Newbie

A search for 2007 in the document returned nothing. It was last altered in 1998 during the reign of General Abdusalami Abubakar.

Na wa for dis country! wuru wuru too much! Sacking business owners by military decreee!

0
Avatar
Newbie

They are private sector people in charge of people's life savings and net worth, who are mismanaging it. The government has been required to save them so can sack whom the Bleep they please.

UK did the same with Northern Rock, does that mean UK is in trouble?

The all singing, all dancing bandwagon of ________ quickly jumping at the slightest opportunity to say Nigeria is doomed.

0
Avatar
Newbie

You can abuse me from now till doomsday. I don't care.

Private sector people sacked by IBB's decree, in a democracy!

0
Avatar
Newbie

Moronic drool from start to finish.

0
Avatar
Newbie

d) where, after an examination under section 32 of this

Decree or otherwise howsoever, the Bank is

satisfied that the bank is in a grave situation as

regards the matter referred to in section 32 (1) of

this Decree, the Governor may be order in wiring

exercise any one or more of the powers specified in

subsection (2) of this section.

(2) The Governor may be order in writing under subsection (1) of this

section:

(c) remove for reasons to be recorded in writing with effect from

such date as may be set out in the order, any manager or

officer of the bank, notwithstanding anything in any written

law or any limitations contained in the memorandum and

articles of association of the bank;

http://www.cenbank.org/out/Publications/bsd/1991/bofia.pdf

0
Avatar
Newbie

What happened to the Chairman of Bank of America (he is still CEO)? CEO of AIG, CEO of one Switzerland bank?  CEO or Chairman of RBS?

They just left without pressure from their various central banks, who injected money into the banks?

0
Avatar
Newbie

But they are under the authority of the Central Bank. The got license from the CBN to operate in the country. No matter if it is listed on the stock market or not, a bank MUST submit it a copy of its statement to the Central Bank live a publicly traded bank does. And the Central Bank has authority to remove the CEO, Director under the CBN and BOFIA Act.

The foreign banks in Nigeria such as Stanbic, Standard Chartered and Citi Bank are also getting audited. Even though Standard and Citi are not listed on the NSE, they got a license to operate in Nigeria, so the CBN has authority over them.

0
Avatar
Newbie
Your answer
Add image

By posting your answer, you agree to the privacy policy and terms of service.