The former CBN governor, Charles Chukwuma Soludo has taken the lawmakers to school on the Capital Markets. His testimony before the House Committee on Near Collapse of the Capital Markets was more like a lecture as he informed the honourables that stock market crashes are a normal occurence in the life-cycle of any economy.

According to Soludo, “stock market crashes will always happen: no amount of ‘reforms’ or ‘regulation’ will stop future ones. The jury is still out on what constitutes ‘appropriate’ regulation or ‘reforms’ of the market: debate raging in US now, over vs under-regulation.”

He said the stock market was simply a reflection of what obtained in the larger socio-political strata of any economy saying it was the mismanagement and bad leadership in Nigeria that waas responsible for the market crash.

His words, “Think about Nigeria’s ‘Newspaper Headline Index’ — how many positive per week versus negative! Political economy of change in Nigeria is one step forward, three backwards! The Stock Exchange cannot be better than the systemic competitiveness of the economy. Investors are not stupid (when the Market was booming, Nigeria was not rated No.14 failed State in the world— think about this!) — see all the reversals of privatisations, etc. Stock Market is simply a barometer.

“How are we sure that the market is not just reflecting the fundamentals of the economy? What kind of market do we want— a market that leads the economy or that follows the economy? Let us define our target/destination and how far we are from it before we know the appropriate vehicle to reach there.

“How come that in three years and with monthly oil price averaging $100 per barrel and over 2mbd, and with all the ‘reforms’ in money and capital markets (supposedly there is no more lax regulation/supervision) and despite Dangote’s over N2 trillion listing which lifted the market cap over N8 trillion, the market cap is basically today at the level I left it three years ago?”

http://businessnews.com.ng/2012/05/16/soludo-takes-lawmakers-to-school-on-capital-markets/

Long time soludo,where u de now sef

Soludo is an Academic giant. The finest and brightest mind in the contemporary Nigeria.

Interesting!

Hmmmm.. I like the word 'NEWSPAPER HEADLINE INDEX'!!!!! well the guy has said it all....whenyou only have bad news all over the polity what else do you expect in the economics?

This should be a wake up call to that Slow poke in Aso rock!

GIANT AMONG SMALL EGOCENTRIC MEN

Jeel: Long time soludo,where u de now sef

^^^We are keeping him for Anambra State. Everyone else should hands-off!!! Shikena.

LOL WHAT A LECTURE I AM SURE AFTER HE LECTURED THEM THERE WOULD BE NO QUESTION TO ASK LOL HEHEHE I TIRE FOR ALL THIS HIGH SCHOOL PASS OUT LAW MAKERS WE HAVE IN NIGERIA.RUBBISH LAW MAKERS AFTER EMBEZZLING THE MONEY YOU ARE LOOKING FOR A WAY TO USE SOLUDO AS UR SCAPEGOAT.

Crash in Capital Market ‘ll happen again – Soludo
on MAY 16, 2012 · in NEWS
2:00 am
Email1
BY BEN AGANDE
*As Ngama scores Oteh low
ABUJA —Former Governor of Central Bank of Nigeria, Professor Chukwuma Soludo, yesterday, painted a gloomy picture of the Nigerian Capital Market as he told the House of Representatives Ad-Hoc committee investigating the near collapse of the Capital Market that no amount of regulation can stop the crash of the market as crashes are normal in the stock market.

His testimony came on a day the Minister of State for Finance, Dr Yerima Ngama, berated the Director General of The Securities and Exchange Commission, Ms Orunma Oteh for not doing enough to safeguard the capital market as her performance “should have been better, far far better than it is.”

Soludo who appeared before the committee also defended his position on the global economic recession, saying he did not say it would not affect Nigeria but that the economy would not go into recession.

According to the former CBN governor, “stock market crashes will always happen: no amount of ‘reforms’ or ‘regulation’ will stop future ones. The jury is still out on what constitutes ‘appropriate’ regulation or ‘reforms’ of the market: debate raging in US now, over vs under-regulation.”

Reflection of general economic situation

He said what was obtainable in the stock market was a reflection of the general economic and political situation in the country, adding that the committee should “think about Nigeria’s ‘Newspaper Headline Index’ — how many positive per week versus negative! Political economy of change in Nigeria is one step forward, three backwards! The Stock Exchange cannot be better than the systemic competitiveness of the economy. Investors are not stupid (when the Market was booming, Nigeria was not rated No.14 failed State in the world— think about this!) — see all the reversals of privatisations, etc. Stock Market is simply a barometer.

“How are we sure that the market is not just reflecting the fundamentals of the economy? What kind of market do we want— a market that leads the economy or that follows the economy? Let us define our target/destination and how far we are from it before we know the appropriate vehicle to reach there.


Former CBN Governor, Prof. Chukwuma Soludo, Speaking at the Public Hearing by the House of Representatives Ad-hoc Committee investigating the near collapse of Nigerian Capital Market in Abuja on Tuesday (15/5/12).NAN Photo
“How come that in three years and with monthly oil price averaging $100 per barrel and over 2mbd, and with all the ‘reforms’ in money and capital markets (supposedly there is no more lax regulation/supervision) and despite Dangote’s over N2 trillion listing which lifted the market cap over N8 trillion, the market cap is basically today at the level I left it three years ago?”

Talking about his achievement in office, the former CBN governor said he came into “office with a unique background and experience with a vision and ambition to create a new financial system that would make the economy realise its potentials as Africa’s largest economy; an International Financial Centre, and Africa’s financial hub,” adding that he “created a new banking system through Consolidation and 13-point agenda, which engineered a new Stock Market as one of its by-products.”

Ngama rates Oteh

In his testimony, the Minister of State for Finance, Dr. Ngama, when asked whether the competence of the Director General of the Securities and Exchange Commission played any role in the state of the capital market, said the lack of good working relationship between the Director General of the Commission and other Commissioners contributed to the comatose state of the capital market.

He said: “You can have all the certificates, you can go to school but you can decide to be incompetent. The performance (of the Director General of the Securities and Exchange Commission) should be better, far, far better than it is. It is not a mistake that the SEC Act says there should be a director general and three commissioners.

“From what I have watched, the body (SEC) is not one. The leg is apart from the hand. Since you (committee) have observed what is happening there, whatever your report says, as an employer, whatever you recommend, we will implement.

http://www.vanguardngr.com/2012/05/crash-in-capital-market-ll-happen-again-soludo/

so confident

I CAN JUST PICTURE THE BRAINLESS LAWMAKERS STARING AT HIM AS HE SCHOOLED THEM LIKE CLUELESS DOGS ON HEAT.
ILLITERATE PLONKERS.

Prof. Soludo consolidation of the banks was commendable.

But Under his watch the bank owners simply turned the money of their customers to their personal money and spent it recklessly. Even the banks contributed immensely to the collapse of the stock market by their unethical behavior because there was not enough check and balance from central bank and other agency.

The Prof!

Please, please Soludo should be paid for this lecture he delivered to these Dick Heads in the committee.

life! After this man and his cabal had sent investors to grave yard he now calling for School. Professor of cabals.

Soludo is a prof. Of capital market while most of our lawmakers are bsc holders soludo is going 2 cheat them 4 they are not his equal soludo should try that among his equal

What is the big deal?a former CBN governor should be able to lecture lawmakers on issues concerning money market. The lawmakers come from all works of life, some are lawyers, doctors, teachers, traders etc. So i dont see how you expect them to know more about capital market tha Soludo.

juman: Prof. Soludo consolidation of the banks was commendable.

But Under his watch the bank owners simply turned the money of their customers to their personal money and spent it recklessly. Even the banks contributed immensely to the collapse of the stock market by their unethical behavior because there was not enough check and balance from central bank and other agency.

Just what I was thinking....

Let's now compare soludo and sanusi

Soludo made nigeria banks bigger through meagers
Sanusi is selling our banks to friends and relatives in d name if nationalising.

Nigeria banks under soludo was one of d highest employer of labour
Banks under sanusi re sacking ppl in their thousands and more

Wot more can we say; sanusi is d problem

Better lecture than action

supremebeing09: I CAN JUST PICTURE THE BRAINLESS LAWMAKERS STARING AT HIM AS HE SCHOOLED THEM LIKE CLUELESS DOGS ON HEAT.
ILLITERATE PLONKERS.

Many of them were sure praying for the lecture (gibberish, to them) to be over in time.

ZUBY77: What is the big deal?a former CBN governor should be able to lecture lawmakers on issues concerning money market. The lawmakers come from all works of life, some are lawyers, doctors, teachers, traders etc. So i dont see how you expect them to know more about capital market tha Soludo.

Well said.

PROUD-IGBO:


^^^We are keeping him for Anambra State. Everyone else should hands-off!!! Shikena.

u and who?. U mean u and ur kinsmen?

“How come that in three years and with monthly oil price averaging $100 per barrel and over 2mbd, and with all the ‘reforms’ in money and capital markets (supposedly there is no more lax regulation/supervision) and despite Dangote’s over N2 trillion listing which lifted the market cap over N8 trillion, the market cap is basically today at the level I left it three years?

Thats a very intrigueing question above,just wished SLS was a nairalander. And the bigots who work tirelessly to demean Soludo, 'cos he is Igbo,a question for you jerks too...

All hail the Governor of Anambra State come 2014 insha Allah. These lawmakers should rather be inviting people at their level like sanusi and co to their public hearings so they dont look like fools next time

juman: Prof. Soludo consolidation of the banks was commendable.

But Under his watch the bank owners simply turned the money of their customers to their personal money and spent it recklessly. Even the banks contributed immensely to the collapse of the stock market by their unethical behavior because there was not enough check and balance from central bank and other agency.

Wether you like it or not, the entrance of soludo was the begining of the blessing to Nigerian finacila sector. He was and is the best finance minister in Nigeria. Lets still keep watching sanusi..the boko haram sponsor and sharia minister..

Not interested [img]http://www.spgames.info/g.gif[/img]

Omexonomy: Soludo is a prof. Of capital market while most of our lawmakers are bsc holders soludo is going 2 cheat them 4 they are not his equal soludo should try that among his equal

with all due respect,this lecture was never for a show off,hence your mentality is a retrogress and a fat flop. We are talking 'way forward' how do you even reason,no wonder our universities rank 8600 on world rating...

Welldone Prof. Call that Mallam now to come and testify, he will tell you that it was the Capital market that created the Boko Haram as if he was their spokeman. Though no much blame here atleast as a Msc holder in Arabic Studies he is not disappointing.

Since the Prof has spoken, Lets see if Sanusi will make a U-turn and appear before the Committee.

kaeto:
“How come that in three years and with monthly oil price averaging $100 per barrel and over 2mbd, and with all the ‘reforms’ in money and capital markets (supposedly there is no more lax regulation/supervision) and despite Dangote’s over N2 trillion listing which lifted the market cap over N8 trillion, the market cap is basically today at the level I left it three years?

Thats a very intrigueing question above,just wished SLS was a nairalander. And the bigots who work tirelessly to demean Soludo, 'cos he is Igbo,a question for you jerks too...