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Why The Request For Bailout in Nigeria?

Please where are the bankers in the house

Does anyone know what these CEOs are trying to bail out

Is anybody in Nigeria accessing non-secured loans

or how many people in Nigeria have their homes on mortgage

Or are we bailing out because the west is bailing out their banks so we must even though there is no justification

I need your thoughts on these please

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19 answers

They obviously need to bailout the price of their shares, because it's definitely not the banks they are trying to bail out. You can not give medicine to a healthy man.

I believe most of these senators have huge investment in the stock market as do most Nigerians. But they are not thinking of "most Nigerians" when they ENDORSE a bailout. They are thinking of themselves (bank accounts) and their shares.

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@Poster, it is necessary for members of the house and others to get their share of EgunJe 2008 Cake. With EFCC in the house, the need a semi-legit way to get to that money and it seems they have found a way through the global crisis.

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who has collateral in the US Market, the banks or the govt?

because this is the govt offering a bail out without the bank asking for one.

So the question is who is bailing who, and what are they bailing.

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ROFLMAO!!!! I love the way the article says the house of senate ENDORSED the bailout nevermind the situation in the banking sector!!! ROFLMAO!!!

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Shouldn't the house of reps employ some sort of consultant, financial, engineers, medical blak blah

so they actually look or act like they know what they are talking about

it seem they just spend all day watching CNN eating chicken

the banks are not asking for money but they want to give out money to companies declaring huge profits

like they own it.

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Ofcourse, Nigeria will wanna bailout, more money for the silly leaders to chop, Na God go punish all of them

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[center]CBN stops banks' bail-out plan [/center]

A PLAN by six banks to inject N100 billion each to increase liquidation in the money and capital market was shot down by the Central Bank of Nigeria (CBN) yesterday.

The CBN said there was nothing to bail out, as all the fundamentals of the country's banking system were right.

However, conflicting signals came from the House of Representatives Committee on Capital Market (them want chop money, what do Politicians know about banking?), which endorsed a proposal that the Federal Government should emulate the United States (US.) and some European nations by offering bail-out funds to Nigerian banks to cushion the effect of the current global financial meltdown.

In fact, the committee proposed a stabilisation fund of about N500 billion.

The developments came on a day that a Senate committee expressed concern over increasing losses at the Stock Market, although the Securities and Exchange Commission (SEC) reiterated that there was no cause for alarm.

The apex bank aborted the bail-out on the grounds that Nigerian banks were recording huge profits; possess the highest capital adequacy ratio of 22 per cent in the region as against the Basel 2 minimum requirement of eight per cent and minimal exposure to the capital market recession of less than eight per cent.

The Nigerian Stock Exchange (NSE) recently said it had appointed United Bank for Africa (UBA), Guaranty Trust Bank (GTB); Union Bank of Nigeria (UBN), Intercontinental Bank and Zenith Bank to inject N600 billion to the market to stabilise it.

Three days later, the capital market regulator (SEC) declared the NSE action null and void. It explained that the NSE had usurped its function since it lacked the mandate to do so and demanded explanation from the body on its action.

In the same light, the CBN yesterday barred the banks from injecting bail-out liquidity. It announced the decision at the end of a special bankers committee's meeting, comprising banks' chief executives.

According to the CBN's Director of Banking Supervision, Mr. Odufu Imala, who briefed reporters at the end of the meeting in Abuja in company of the Managing Directors and Chief Executives of Zenith Bank Plc, Mr. Jim Ovia; Diamond Bank Plc, Mr. Emeka Onwuka and Spring Bank Plc, Mr. Suleiman Ndanusa, the apex bank's investigation indicates that Nigerian banks' exposure to the capital market recession was just eight per cent of their total assets, which was not serious enough to warrant any bail-out plan to them or the capital market.

He insisted that the current share price crash was a corrective mechanism, which is natural and was nothing to panic.

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ha ha overvalued shares have come to bite them in the Bottom.

http://www.thisdayonline.com/nview.php?id=125809

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L O L. Nigeria Leaders are a big joke.

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Monkey see, monkey do.

Which kain credit freeze dey Naija? These banks just want free money. The pyramid scheme is over. They better find solid businesses to invest in instead of speculating on phony shares when they know all of them are cooking the books.

If interbank lending is strong, there is no need for bailout. What assets do they want to be bailed out anyway? Assets that they made up in the first place? Phantom assets which they cooked just to make their balance sheet look good?

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Even if this was the case, which i have to point out based on reports it isn't, that would still not make any sense whatsoever since Nigeria has a pretty much non existent mortgage market or anything resembling a diverse or deloped economy for that matter. So what now, whenever banks want money they just stop lending to each other like a three year old throwing a tantrum? Again, based on news reports inter bank lending in Nigeria is if anything very healthy.

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Just really sad that, the govt and the leaders wanna use this as means to steal money again, cos the credit crunch is yet to affect nigeria, so i am not sure what bail out they wanna bail out in the tune of 6B$.

I am sure by the tme all these old fools are dead, our children's children will pray for them.

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I think the Nigerian journalists are the lazy one screaming bailouts! together with some illiterate law makers

you will notice the paper didn't mention any single CEO or so called bank chiefs, they keep writing abut 'experts' and reliable sources

how do you bail out banks they are announcing over 50% profit?

Guardian

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These banks also need to borrow from one another and from international banks. If the cash flow is non existent, they will be in trouble as well. That's one point of view.

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I thought as much. Another way to siphon the public fund.

Copycat Country

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lets wait and see the explanation for this

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I was also unable to understand or comprehend the news. Really, i was just lost for words too. Maybe i am not seeing something that others are

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egunje crunch is obviously affecting the nigerian economy

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those CEOs are just looking for cash to steal.

What are they requesting a bailout for? Did they give us any loans?

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