People,

With all the hullabaloo on WEMA Bank, how much is it best to sell off NOW!!!

Sorry, Wat's happeniing with Wema Bank?

I sincerely don't see anyone buying Wema Bank shares now except the person has privileged information. It makes me wonder at times if the integrity of most Nigerian Bank GMD's can be sustained. What with all the competition, braggado and claim to be No. 1 Bank, Biggest Bank, Most Customer Friendly Bank, and whatever title or adjective they want to add - this will make some of them resort to underhand methods in order to achieve such appended titles.

u pple should tell us what is happening to wema bank

@bomboyi and tosruyi - the following gives you an insight into the events at Wema Bank.

Wema Bank Plc - Update

A new Ag. Group Managing Director has been appointed for Wema Bank Plc. He is Mr. John O. Aboh, Executive Director (Banking Operations & Services) of First Bank of Nigeria Plc.

He held his first meeting with members of staff this morning. As predicted by analysts, this is the clearest signal that the former GMD is not coming back irrespective of the outcome of the investigation as the CBN/NDIC are not known to take such steps unless they are convinced that there exist good grounds to excuse the helmsman.

Born on July 18, 1956. Mr. Aboh holds a B.Sc. degree in Finance and MBA in Finance & Accounts. He has over the years acquired special skills in Structural International Trade Transactions, Computer Literacy and People Management.

He has also attended several proficiency-enhancing courses within and outside Nigeria. A seasoned Banker, Mr. Aboh began his Banking Career in 1981 in First Bank of Nigeria Plc. He worked as Credit Analyst, Assistant General Manager and as Deputy General Manager & Chief Inspector in Nigeria Merchant Bank Limited, Nigeria International Bank (Citibank) and UBA Plc respectively.

Notable special projects executed by Mr. Aboh include the reorganisation of International Operations System at Nigeria International Bank (Citibank) and the Implementation of the UBA MoneyGram Money Transfer Service. He is now Executive Director (Banking Operations & Services) at First Bank. He is married with children.

The appointment of John Aboh, finally seals the fate of Mr. Adebisi Omoyeni whom we understand has a number of corporate governance and management issues to answerfor based on the factual disclosures made available to us which appear weighty and raises serious concerns over the reliability of the financial data made available to the public.

You guys should open your eyes and see what is happening. I heard from some of my guys that Tunde Lemo, CBN deputy governor and former Wema MD committed a lot of atrocities like falsifying profit figures and giving out huge loans(of about 8 billion naira without following due process. Word is that Bisi was on the verge of exposing Him and he was afraid of Him. Also a close friend of mine who works in Wema told me that our Adebisi stepped on the toes of some powerful men that were bent on buying the bank for peanuts men. Also other Md's have houses worth over 1 billion and it represents their banks . Meanwhile, brother Bisi asked for 300 million and was given 450 by the board. Read this from the TribuneTRIBUNE

Wema Bank Crisis: Real Reasons Why Omoyeni Was Removed
Martin Ayankola, Lagos - 26.01.2008

When Adebisi Omoyeni, the Managing Director of Wema Bank Plc, was asked to proceed on compulsory leave by the Nigerian Deposit Insurance Corporation (NDIC), it was the climax of a crisis that had been brewing in the bank for some time.

Although NDIC sent him on leave for an alleged insider loan of over N400 million, it was gathered that the reason for his exit was much more than that.

Omoyeni was said to have been against the planned acquisition of the bank by another new generation bank, owned by a personality from the South-West.

This, it was learnt, put him on collision course with some powerful interests within the Central Bank of Nigeria (CBN) who are actually interested in the acquisition of the Odua Investment Company's shares in Wema, by the said new generation bank.

In fact, the said bank had on January 4, 2007 written to the Group Managing Director of O'odua Investment Company stating its interest in acquiring the shares.

The bank said in the letter, "We have a passion to protect and sustain one of the heritages of our forefathers, Wema bank Plc, so that our people of the South-West, are not deprived of this heritage.

"Specifically, our interest is to prevent other people who may not be interested in protecting this common heritage from getting hold of these shares.

"We will guarantee that Wema Bank Plc is in safe hands of professional bankers with impeccable track records in banking and not just mere investors.

"If given the opportunity to acquire these shares, we shall be in regular consultations with the respective governors of the owner states and the board of O'dua Investment Limited, a process which we have already embarked upon."

The Chairman of the Board of Directors of Wema Bank, Alhaji Olapade Muhammad, and Omoyeni are said to be against this planned acquisition and thus have been fighting against it since.

Muhammad, in a letter to former President Olusegun Obasanjo on the issue on January 22, 2007, said a key officer in the CBN had been undermining the interest of the bank

if u 've wema shares,sell them now 'cos it would start droppin for as long as the investigation/story lasts.it may take some months from now b4 it'll regain strength.under omoyeni,there's been bad corporate governance n insider loans along wit the huge housing grants he granted himself.omoyeni won wemasec over from adegbite a few yrs back n has been fighting with him since then.lemo is adegbite's boy.odua divested their shares in wema which was bought over by omoyeni critics.they n lemo(adegbite's interest) decided to use the opportunity to nail omoyeni for bad corporate governance.gbenga daniel has a personal stake in wema n don't like omoyeni one bit.this is why d events r unfoldin.

for STOCK INVESTORS SELL NOOOOOOOOOOOOOW!!!!!!!!!!!!!!!!!!!!!!!!! B4 A PRICE CRASH.

i wonder why pple were trading high volume on d stock last yr for a co. dat did not publish its financials 4 2 yrs.

Why bring someone from First Bank to come run WEMA?
Is this decision by CBN ethical?
Both Banks are competitors.
Will Mr. Aboh not disclose WEMA business strategies to First Bank?

Some words of caution here , let us not just follow sentiments or should i say the crowd .
what i think one should look at here is this 1, has the fundamentals of wema bank changed ? 2 , will the current problem affect the ability of wema bank to continue doing business and making profits in future ? if the answer to this two questions remain positive then its matter of time for the bank to bounce back into limelight again , so i suggest one do his due diligence about the current situation of wema bank before jumping into conclusion .

Well, I'm of the opinion that Wema Bank still has good fundamentals. If I was asked to place a bet, I will say the price will climb. Truth is from this development, it sure has moved into a long term stock but I wouldn't just through it away. In fact, I actually have some units and would love to continue buying into it.

I always find it difficult to swallow everything in the media hook, line and sinker. I wouldn't be surprised if there actually is, some kind of politics in the whole thing. If the MD did something wrong, investigate quick, draw a conclusion and let the bank go on. After all, the CBN is supposed to help the banks improve the economy.

Over time, I guess it;s a method that's worked for me, I buy those kind of stocks and they turn out to be goldmines. eg-Afroil. I actually wished the share was not on TS so the price cold go down and make a good entry. Similarly, they could be landmines (rarely in the NSE though.

Remember, it's still your decisions to make on what to buy, hold or sell.