The threat is really for the shareholders dragging the process in courts- No investor or major bank will want to deal with these sort of issue especially knowing how cumbersome the legal process is in Nigeria.

These shareholders can raise money- their money has gone with the stock market, they have no known backers yet they have refused every move to inject money from private investors

I think i am losing it, wasnt there this story i read about Capital Alliance Nigeria Limited (Private equity investors) having bought over Union Bank? As for the rest of the mentioned banks, their unstability had never been in doubt. I recall that when their sole administrators were first appointed (or whatever in double hell they call their salvaging MDs), those guys (and the lady)ies)) amongst them commenced another round of spending spree until somwone somewhere squawked.

As i speak i dont really know what their states are, but one thing is certain, they are all struggling and any purported turn around is basically what it is- paper profit.

As for me ooo, na only one bank i believe in, but i no go mention them name here. My savings, current, Dom, Corporate, etc na them get am for now.

edo.girl. May you live long, many people will suffer if those banks fail.
Manny4life,feelamong and Da doctor, you are selfish and you are terrible people. It sounds as if you are stakeholders in one of the so called strong banks. That is why you want other banks to be liquidated so that your banks will gain everything. That is why you said people should sell off their shares in the so called weak banks and use it to buy shares in the so called strong banks. What do u guys stand to gain if those banks are liquidated? I m sure nothing. But you guys stand a lot to lose because it is your sons, brothers and sisters that will first get killed or wounded if the staff of those banks become armed robbers after they are laid off.
To those who say the banks cannot recapitalise, it is a big lie. Someone should please answer this question - Why didnt sanusi give those banks the opportunity he gave unity bank to recapitalise. Why did he allow Unity bank to go to market and he did not allow others to do so?

@edo.girl

I clearly understand that these banks recapitalization through the normal market capital scheme, what I was asking @ Da_Doctor who is claiming " CBN may nationalize these banks", I wanted to know where Mr. Sanusi and his cohorts will get at least $80 billion (estimated at about 1.5trillion) to finance these bank. I was asking will Sanusi use tax payers money for these? The answer is NO because the first round of money poured into these banks are NOT helping them, Sanusi sees that they are about to loose their money and wants to liquidate it while he can and mitigate these risk while he can. My concern has been these banks had at least 2years to get it together, yet they did not, shareholders, bank execs, even the public did nothing, what do u think they will do NOW at the last minute? Oh I forgot, some kind of miracle will happen.


IMO, these banks are in some mess that the best for them is either find someone willing to accept the risk or fail. As it stands, CBN is about to bail because things are not working as planned. In these type of scenario, the best is allow the banks to be acquired for less to other healthy banks, obviously absorbing all their debt just like few banks here did for instance (Capital One acquired Wachovia). Other than this, these banks are going under, and I mean under, and IMO nationalization is very expensive just like you said. Who will bear the cost? Nigeria doesn't have extra N1.5 Trillion to inject to nationalize these banks. Even if the needed N1.5 trillion need is split into four and two banks are saved and 7 goes, still solves a lil but not all.

@kafanchan

Please brother, calling me names will not solve the problem. I am only commenting as the story says. Please I will not teach you finance and banking 101, I'm not these banks and I am only offering my opinion. U.S. allowed few of its banks to fail, liquidate, go under et al, when they realized that money pumped into them were not helping or helped. If at now you need 2x to 3x the amount of capital you needed 2.5 years ago, it means that you are in 2.5x to 3x. more debt than you were 2.5 years ago. So please see my point and stop insulting me, this is common sense.

I support ds 100%! Recapitalize, merge or  if ur stll broke by sept, eff out!

Manny4life. I m so sorry , I didn't know that is what you were driving at. Anyway, what I am thinking is that Sanusi should just put beaf aside and allow these banks to enter stock market, my brother, you will be shocked by the amount of money that some of these banks will raise. Sanusi doesnt want these banks to go public because the banks will definitely go back into the hands of some of the former MDs who (IMO) he and farida is yet to find guilty. He is afraid that all his aims will not be fulfilled. Bros let me tell you, that man is a typical Boko haram, he will rather liquidate those banks than allow those shareholders recapitalise. . If not, when Union bank shareholders were saying last year 'allow us recapitalise our bank, our pension is enough to recapitalise our bank', why didnt he agree. Why will he insist that he ll rather sell the banks than allow shareholders recapitalise. That is why Jonathan should remove him ASAP,if he is really interested in reducing unemployment rate
This is what most people have not noticed, or let me say they noticed but they pretended as if they didnt notice.

Its worth crying over but "I just dey laugh"!

I think peeps need to go back in time and "RE-EXAMINE" EVERYTHING THIS SANUSI-IN-BOW-TIE HAS DONE!

Just go through all his policy statements and tell me if at the end of the day, YOU STILL CANNOT SEE HIS VENDETTA DRIVE, FROM DAY ONE!
He knows those that own most banks in Nigeria are Southerners (am sorry to inject this North/South argument but a spade is still a spade!) and he has his agenda well written for him.

Remember when he has not even finished his "stress test" on ALL THE BANKS and he quickly went about town telling us x, y, and z bank are distressed BUT HE HAD NOT EVEN DONE THE TEST ON UNITY BANK?
He knew the implication and he knew what he was doing!

Go back and check please!

By the time this Islamic Religion Graduate cum Banker-Sanusi is done with our economy, who ever appointed him (R.I.P) will give him a medal but those that "SUSTAINED HIM" afterwards, deserve a bullet in the forehead, literally speaking!

Lets just wait and see.

Hmmm. . .I left my money in one of thos banks based on Sanusi's promise that he waont allow any bank to fail.

It wont be funny at all

Recapitalising the rescued banks is critical to resolving the current banking crisis. But this can only be done when the rescued banks are given a free hand to pursue their recapitalisation plans and, if necessary, look for and negotiate with investors of their choice and not investors dictated by the CBN.

Has the governor asked why Unity Bank and Wema Bank were able to recapitalise in record time while the other rescued banks with CBN-installed management and CBN-appointed financial advisers are yet to do the same almost two years after?

Does this not send a strong message on the best way to ensure that these rescued banks are recapitalised in record time? As it is now, the CBN’s attempt to recapitalise the rescued banks is like tying the hands of a man at his back, then drop him in a river and dare him to swim. He will surely sink. No amount of threat or force can make such a man swim. That is a simple fact. The CBN-installed management of these banks are the ropes around the hands of the drowning man. As long as these ropes are there, the banks will sink rather than swim.

None of the rescued banks need to be liquidated if given adequate time, a free hand and accommodation from the CBN through AMCON. They all have vital non-core assets that can be disposed off and proceeds used as part of their recapitalisation.

As the CBN governor recently admitted, Oceanic Bank has 10 per cent stake in Airtel. No doubt, this is worth several billions of naira and if sold can contribute to the recapitalisation of Oceanic Bank after AMCON recapitalises it to zero.

It is also known that Intercontinental Bank has strong non-banking subsidiaries like Intercontinental Homes and Intercontinental Wapic Insurance, all of which can be sold and proceeds used in partial recapitalisation.

Bank PHB and Union Bank and even the “non-systemic” important banks all have strong local and international subsidiaries that can be sold to aid in their recapitalisation.

A combination of non-core asset sales, a rights issue and strategic partnerships or investments from core investors are all options that should be on the table to help realise the recapitalisation of all the rescued banks.

What has emerged so far in the recapitalisation plan of the rescued banks is the pursuit of just a single strategy of core investor sales to the exclusion of all other options. This strategy has obviously failed and it is time to creatively move on.

@ Odedele, I doff my hat for you. You have hit the nail right on the head.