---

SANUSI first move.... what does it portray
hmmmmmm... Tirinkoti arikoti:D:D.. The night of drawn dagger is here, what are people's take on this move, what are the merits and demerits, tribal warriors can also have a field day:D

CBN Sacks Five Bank CEOs, Injects N400b
The Central Bank of Nigeria has moved to inject N400 billion into five banks in the country following the decision to remove the CEOs and executive directors of the affected banks. The affected institutions are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc, Finbank Plc and Afribank Plc.
The CEOs that have been sacked by the CBN are Erastus Akingbola (Intercontinental Bank); Okey Nwosu (Finbank); Sebastian Adigwe (Afribank); Mrs Cecelia Ibru (Oceanic Bank); and Bartholomew Ebong (Union Bank).
But in a pre-emptive move, Erastus Akingbola, MD/CEO of Intercontinental Bank who got wind of his impending removal called his executive directors to inform them of their certain sack by the CBN.
Akingbola was said to have rushed to Ota yesterday to elicit the support of former President Olusegun Obasanjo to intervene on his behalf and call President Umaru Yar’Adua to stop the CBN from carrying out the sack.
However, the CBN governor, Sanusi Lamido Sanusi, who made this decision known this morning at the Emergency Bankers’ Committee convened by the CBN in Lagos, explained exclusively to THISDAY that the decision was being taken to safeguard the financial sector from systemic collapse.
He said following the audit exercise conducted by CBN’s examiners it was discovered that five of the banks had accumulated margin loans of N500 billion, among other loans, that had gone bad and eroded their shareholders’ funds.
“Some of these banks are quite large institutions and they have been mismanaged, so we had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated.”
He said the CBN had obtained the approval of the President to inject N400 billion into the affected banks to shore up their tier 2 capital to minimum acceptable levels.
Sanusi added that the funds being injected by the CBN was just temporary and does not translate to the government taking a stake in the five banks, as the interim management will be given a period to recapitalise the affected institutions, following which the N400 billion will be paid back to the CBN.
On how the CBN will prevent a run on the banks and create panic in the economy, Sanusi said the CBN intends to make it clear that the money being injected by the reserve bank as well as the decision to guarantee interbank placement should allay depositors’ concerns.
The CBN, he stated, stands ready to ensure that no bank collapses in the country, but will encourage them to seek for funds to raise fresh capital and merge with stronger banks.
He said an interim management and board for the affected banks will be put in place to run the institutions until they are taken over by new management teams and owners.
http://www.thisdayonline.co...

---

Yeah, it must be the Islamists that borrowed money from these Southern CEOs and didn't pay back! :D

Where is my own bailout?

---

My first take on this is how verifiable are these claims of impropriety on the parts of the CEOs. I also always had a feeling ELUMELU and OVIA were not that clean, but i guess i may just be wrong since its looking like they are in the clear..... Could these move by Sanusi be premature? could it also be Sanusi trying to assert power or could it just be Sanusi being efficient and proactive

---

OMG,not him!!
They sacked him.
why???????????????????????????????????????
This is outrageous!!
Does this awusa CBN governor know what he's doing?
abi he wan replace them with hs fellow awusa people as usual.

---

---

=OSIBINAEBI;380906>My first take on this is how verifiable are these claims of impropriety on the parts of the CEOs. I also always had a feeling ELUMELU and OVIA were not that clean, but i guess i may just be wrong since its looking like they are in the clear..... Could these move by Sanusi be premature? could it also be Sanusi trying to assert power or could it just be Sanusi being efficient and proactive

---

As far as I am concerned these CEOs asked to be sacked. They basically proved their own incompetency by admitting to lending loans they have no hope of ever getting back. That is poor management at its height...moreover, the lack of taste in putting up a national advert asking the President to get their money for them. As if the President was there when they were offering loans to high rollers.

Moreover, if those banks need to recapitalized with tax payer money, the minimum is to sack the CEOs that put them into the hole...especially with money as large as the entire Lagos State budget

---

---

=busanga;380909>As far as I am concerned these CEOs asked to be sacked. They basically proved their own incompetency by admitting to lending loans they have no hope of ever getting back. That is poor management at its height...moreover, the lack of taste in putting up a national advert asking the President to get their money for them. As if the President was there when they were offering loans to high rollers.

Moreover, if those banks need to recapitalized with tax payer money, the minimum is to sack the CEOs that put them into the hole...especially with money as large as the entire Lagos State budget

---

I agree with you, but i am waiting for people that like turning logic upside down. I guess when a lender admits inability to recover his or her money and the court cannot give succour, then the MILITARY must be used via executive fiat:D. I remembered when OBJ ordered Saraki's bank to pay Okocha's money when they had already gone down o:D I guess that is what the CEOs were looking for when they placed the advert... did they also placed the names of the debtors too??.

Lateesha,
Relax now, this is the just the beginning, we will not rest until alll the yamiris and berebes are out of the economic sector where Soludo purged the mallams:D:D:D:D:D

---

---

=busanga;380909>As far as I am concerned these CEOs asked to be sacked. They basically proved their own incompetency by admitting to lending loans they have no hope of ever getting back. That is poor management at its height...moreover, the lack of taste in putting up a national advert asking the President to get their money for them. As if the President was there when they were offering loans to high rollers.

Moreover, if those banks need to recapitalized with tax payer money, the minimum is to sack the CEOs that put them into the hole...especially with money as large as the entire Lagos State budget

---

Why they waited to be sacked baffles me. One would have thought that after their blunders, they would taken the honourable way out and resigned. I guess it would be un Nigerian of them to have done that and probably assume they would eat their cake and have it at the same time. That does not excludes Sanusi's action from being suspect as well though. We'll have to see as events unfold.

---

First off, if you take a census of the so-called bad debts, you will see a list of the so-called who is who in financial and possibly political matters...what is being done to the collateral or the bad/tainted assets acquired by these loans?

Secondly, on the legal; it raises a compliance issue...did the banks comply with the draw-down regime of these loans? If not, why not. Who is responsible for those? RISK MANAGEMENT!

---

---

=valteena;380917>That does not excludes Sanusi's action from being suspect as well though. We'll have to see as events unfold.

---

See? This is the problem with my country. Everything must be suspected. Of course that is a code word for ....(fill in the blanks :lol:)

I bet you if Sanusi did nothing, and those banks failed..people that want to suspect will still suspect:redface:

---

=DaBishop;380918>First off, if you take a census of the so-called bad debts, you will see a list of the so-called who is who in financial and possibly political matters...what is being done to the collateral or the bad/tainted assets acquired by these loans?

---

The banks themselves admitted they got no collateral for the loans if you read Guardian yesterday...

---

CBN Sacks Five Bank CEOs, Injects N400b• Akingbola forewarns directors of pending sack By Ijeoma Nwogwugwu, 08.14.2009 The Central Bank of Nigeria has moved to inject N400 billion into five banks in the country following the decision to remove the CEOs and executive directors of the affected banks. The affected institutions are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Oceanic International Bank Plc, Finbank Plc and Afribank Plc. The CEOs that have been sacked by the CBN are Erastus Akingbola (Intercontinental Bank); Okey Nwosu (Finbank); Sebastian Adigwe (Afribank); Mrs Cecelia Ibru (Oceanic Bank); and Bartholomew Ebong (Union Bank). But in a pre-emptive move, Erastus Akingbola, MD/CEO of Intercontinental Bank who got wind of his impending removal called his executive directors to inform them of their certain sack by the CBN. Akingbola was said to have rushed to Ota yesterday to elic...Read the full article.