First Bank Plc

[pumping]

Originally Posted by c kenneths

A confused governor is more apt, and am bothered about its implication for the economy.

The governor knows what he is doing. No matter how he does it, everyone that wants, will have something negative to say about it. Changing the status quo will always be met with resistance.

Like I have said many times, if you believe UBN and Intercontinental are sound, you duty, is to buy as many shares of these banks as you can. At least, SLS has not put them on full suspension.

[hispy99]

Originally Posted by pumping

The governor knows what he is doing. No matter how he does it, everyone that wants, will have something negative to say about it. Changing the status quo will always be met with resistance.

Like I have said many times, if you believe UBN and Intercontinental are sound, you duty is to buy as many shares of these banks as you can. At least, SLS has not put then on full suspension.

Great point

[c kenneths]

Originally Posted by hispy99

While I'll like to see the list of debtors of FBN, GTB, Access e.t.c, the situation of those banks is different from the Sanusi9. The Sanusi9 effectively are controlled by the CBN and the CBN can decide to pursue their debtors as it deems fit. GTB, FBN and co are controlled by shareholders and the shareholders (represented by management) can pursue their debtors as they deem fit.

When I was at my former bank and Chief Ibeto refused to pay us our money after all entreaties, we published his name in national newpapers with a notice we were going to auction his properties. He paid prompto. If GTB/FCMB/Zenith want to use this medium to pursue their debtors, they are free to, or is anyone stopping them? Did SLS tell GTB not to publish list of debtors, or the CBN is supposed to use its resources to chase debtors on behalf of GTB?

You have a good point here, but saying the CBN should only publish the list of debtors on the Sanusi9 is like saying the CBN should stop regulating other banks, why wait till the loans start to cause problems before he can jump in and take the bank. What efforts did Sanusi make internally as FBN MD to collect this 74b back before he left, did he publish a list or lock up those that took the 74b?

He have done nothing when he was the MD just few months back, and now he can turn round to slap those that were maybe as incompetent as he was.

[eniyanman]

Originally Posted by c kenneths

A confused governor is more apt, and am bothered about its implication for the economy.

There is nothing in the Governor's actions that suggest confusion. I guess the World Bank, IMF etc who have supported his actions are also confused... The naira has appreciated during this period. Or is the naira stupid?

[eniyanman]

Originally Posted by hispy99

I guess we'll have to manage the "useless", "incompetent" and "disgraceful" CBN governor till his term expires.

Yes o... The guy should go on so un...

[eniyanman]

Originally Posted by c kenneths

If Sanusi says the world is round, then again he might be trying to confuse us further, the world is oval shaped anyway.

Strictly speaking, according to Wiki, "The shape of the Earth is very close to that of an oblate spheroid, a sphere squished along the orientation from pole to pole such that there is a bulge around the equator."

[eniyanman]

Originally Posted by pumping

The governor knows what he is doing. No matter how he does it, everyone that wants, will have something negative to say about it. Changing the status quo will always be met with resistance.

Like I have said many times, if you believe UBN and Intercontinental are sound, you duty, is to buy as many shares of these banks as you can. At least, SLS has not put them on full suspension.

This is what it boils down to in the final analysis. People need to put their money where their mouth is.

[c kenneths]

Originally Posted by pumping

The governor knows what he is doing. No matter how he does it, everyone that wants, will have something negative to say about it. Changing the status quo will always be met with resistance.

Like I have said many times, if you believe UBN and Intercontinental are sound, you duty, is to buy as many shares of these banks as you can. At least, SLS has not put them on full suspension.

For me to buy into Inter and UBN now is like paying to board a flight you know has been hijacked by terrorists. The governor may know what he is doing, but he clearly lacks the knowledge to act in a matured way. If you have the best intentions and is acting in front of your family that you are power drunk, they may never understand you and may grow to hate you. Changing the status quo may sometimes usher in pure inconsistency and we might spend the next few years trying to correct a mistake that is made out of miscalculations.

[pumping]

Originally Posted by c kenneths

For me to buy into Inter and UBN now is like paying to board a flight you know has been hijacked by terrorists. The governor may know what he is doing, but he clearly lacks the knowledge to act in a matured way. If you have the best intentions and is acting in front of your family that you are power drunk, they may never understand you and may grow to hate you. Changing the status quo may sometimes usher in pure inconsistency and we might spend the next few years trying to correct a mistake that is made out of miscalculations.

Maturity in Nigeria is about sweeping things under the carpet, pulling wool over our eyes and providing solutions behind closed doors. We've had enough of that. Lets' have it all in the open and stare at the mess on the floor. Maybe then, someone will think of cleaning it up.

[c kenneths]

Originally Posted by hispy99

While I do not agree with every action SLS has taken, I fully support him for firing the CEOs of mismanaged banks. The U.S govt did not ask for shareholders approval before the CEOs of Fannie and Freddie were shown the door after the govt injected capital into both companies. Chuck Prince at Citi saw the light and resigned before he was asked to resign.

Whether the Sanusi9 CEOs are guilty of a criminal offence, I have no clue, but they were at the helm of affairs when the ship got wrecked. The buck stops at their desk, so they deserve to be fired. If they were paid huge salaries for producing profits, they should be ready to be fired for producing losses.

I personally do not agree with the blanket firing of the EDs.

Maybe Sanusi read about the US episode and decided to act it out here because he can always cite that as an example. He was an ED and was not fired even as there were NPLs in his books. I would have loved a full audit and soon after he can sack anyone found to be guilty.

[c kenneths]

Originally Posted by pumping

Maturity in Nigeria is about sweeping things under the carpet, pulling wool over our eyes and providing solutions behind closed doors. We've had enough of that. Lets' have it all in the open and stare at the mess on the floor. Maybe then, someone will think of cleaning it up.

Lets have it all in the open, so the first step should be, the man coming to throw open the door, how clean are his hands and the best answer will be for him to explain to us what happened to N74b. Thereafter he will have our trust to lock up anyone he chooses.

[yemo]

Originally Posted by c kenneths

Maybe Sanusi read about the US episode and decided to act it out here because he can always cite that as an example. He was an ED and was not fired even as there were NPLs in his books. I would have loved a full audit and soon after he can sack anyone found to be guilty.

c kenneths. No disrespect, but isnt the point here that the banks reached such giddy heights back then in 2007 because noone said it as SLS is saying it now? Noone spoke the truth, and it caused intense speculation and an overvalued finance sector.

One thing we SHOULD be learning from the more developed markets is not to make the same mistakes they did and believe in the infallibility of institutions that have been around a long time, or CEOs who believe that they are bigger than their companies, or valuations based on self-perception as opposed to hard facts.

SLS is purely giving the facts and has lifted any mirage that previously would have covered some of these institutions, and in turn sucked more money out of unsuspecting investors.

I dont really think any of the "overvalued banks" back in the day had a "positive effect" on the economy anyway.

[yemo]

Originally Posted by c kenneths

...but he clearly lacks the knowledge to act in a matured way.

But what makes you say his actions are not mature? There's no "nice" way of ensuring that a oustanding amounts of money are paid back I have never heard anyone who has successfully done that being described in nice terms, especially in Nigeria

[pumping]

Originally Posted by c kenneths

Lets have it all in the open, so the first step should be, the man coming to throw open the door, how clean are his hands and the best answer will be for him to explain to us what happened to N74b. Thereafter he will have our trust to lock up anyone he chooses.

On

I think we need to ask him first. If he refuses to answer, then we can complain. One thing I know for sure is that if you ask him, he will give you an answer. That you will like or believe his answer is another story.

[wanaj0]

Hispy, from what I am hearing, a special audit of the banks was done also in 2007. That was what led to the stoppage of the Margin loan. So Soludo was always doing the regulations

Yes SLS has the right and power to sack the MD's (he should actually have sacked the whole BOD) but why sensationalise it. The sector thrives on trust.

Secondly he is making the banks to make more provisions than it is normally required. Why not explain that the banks are going way beyond the normal requirement instead of making it seems as if they were not doing the right things all along.

On the NPL, FBN went after debtors and was told that they were collecting postdated cheques after getting some arrested by the police. Sure the NPL of UBN and other banks should be lower now with the recoveries. Even Wema has recovered about 85% of its NPL!

On publishing lists of debtors, remember Inter through their lawyer did one just before the Sanusi hammer.

Personally, all the banks directors that were involved in infractions should be dealt with.

However, bankers should not be criminalised because there are NPL's in their books. Many things can make a loan to go bad and there can be many genuine reasons. It behoves on him as someone in the system to show understanding and help the banks (not the MD's) to come out of the problem instead of turning everything personal. Should him as the Chief Risk Officer be called a criminal because of the NPL in First Bank? Just look at UBN (never liked the bank) and tell me how the only option available was the way UBN was treated!

Going to the press talking about shares being worthless, people to be shot and jailed gives the impression that he is taking things personal!

[wanaj0]

Originally Posted by yemo

c kenneths. No disrespect, but isnt the point here that the banks reached such giddy heights back then in 2007 because noone said it as SLS is saying it now? Noone spoke the truth, and it caused intense speculation and an overvalued finance sector.

One thing we SHOULD be learning from the more developed markets is not to make the same mistakes they did and believe in the infallibility of institutions that have been around a long time, or CEOs who believe that they are bigger than their companies, or valuations based on self-perception as opposed to hard facts.

SLS is purely giving the facts and has lifted any mirage that previously would have covered some of these institutions, and in turn sucked more money out of unsuspecting investors.

I dont really think any of the "overvalued banks" back in the day had a "positive effect" on the economy anyway.

A special audit was done also in 2007. What you are seeing now is a fall out of the 2008 NSE collapse and the inconsistency of FG to pay oil marketers and go with full deregulation as planned.

[nosa2]

One thing that bothers me is that, why would a company that knows that they still have provisions for losses to make dip into reserves and pay dividends? To me this shows one of two things, recklessness in terms of cash flow management or trying to mislead investors so some insiders can off load.

[wanaj0]

Originally Posted by nosa2

One thing that bothers me is that, why would a company that knows that they still have provisions for losses to make dip into reserves and pay dividends? To me this shows one of two things, recklessness in terms of cash flow management or trying to mislead investors so some insiders can off load.

Thats SLS's decision to pacify the shareholders.

SLS requires EXTRA provisions so ALL the banks were forced to make more than required/expected. Diamond thought their extra ordinary provisions ended with the Full year/Q1 but watch as they make additional provision based on the CBN audit. Same goes for GTB etc. So this provision was not expected. Noticed that for the first time in hsiatory, FBN did not release the Q1 result!

The result is actually poor. Even if you add the N29bn provision to the PBT, it shows only about 10% growth in PBT! That is poor when you compare with growth by GTB

With the gain they ought to have from flight to safety, one would have expected them to grow profit by between 15% to 20% at least.

From the look of things, nothing to stimulate the market till Q2 next year. FBN has only 3Q this year so profit will be quite small. Dont know where they will get money to feed the almost 30bn shares oustanding.

Anyway, I am attached to FBN so we will wait it through.

[c kenneths]

Originally Posted by yemo

c kenneths. No disrespect, but isnt the point here that the banks reached such giddy heights back then in 2007 because noone said it as SLS is saying it now? Noone spoke the truth, and it caused intense speculation and an overvalued finance sector.

One thing we SHOULD be learning from the more developed markets is not to make the same mistakes they did and believe in the infallibility of institutions that have been around a long time, or CEOs who believe that they are bigger than their companies, or valuations based on self-perception as opposed to hard facts.

SLS is purely giving the facts and has lifted any mirage that previously would have covered some of these institutions, and in turn sucked more money out of unsuspecting investors.

I dont really think any of the "overvalued banks" back in the day had a "positive effect" on the economy anyway.

Thank you bros for your observations, however regulation involves acts that must be carried out in a fair manner to avoid creating more problems than the one you are trying to solve. Its like allowing some thieves to operate while killing others, that way stealing will never stop.

While I supported his appointment as a way to have another type of action in the banks we never thought it will come to this. The truth has to be wholistic, right now there are insinuations that he is giving us half truths or selecting where to tell the truth. This is worse than a lie. Your last sentence says the overvalued banks had no positive effects in the economy? Well they were doing their businesses, paying depositors and shareholders as at when due, employing and promoting young graduates, paying tax to inefficient govts, building pretty houses, employing labourers and engineers indirectly, activating the property market, providing ATMs and generally improving banking services, can you beat that?

[c kenneths]

Originally Posted by yemo

But what makes you say his actions are not mature? There's no "nice" way of ensuring that a oustanding amounts of money are paid back I have never heard anyone who has successfully done that being described in nice terms, especially in Nigeria

Actions could become immature if its not well thought out in advance, especially the negatives. Its nice to collect back loans in the best ways possible but to take over banks because they have debtors should be handled with caution. If debtors stop taking loans the banks are sunk.