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Soludo Takes Lawmakers To School On Capital Markets - Politics (3) - Nairaland

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Re: Soludo Takes Lawmakers To School On Capital Markets by ballabriggs: 11:29pm On May 17, 2012
Frank-C:
^Your last sentence seem suggest that you are against the unde-regulation. Most likely, you are for over-regulation as is presently practised. Is Soludo's 'many blunders' that he belongs to a different school of thought from yours as a fellow 'intellectual'. Actually, both schools of thoughts have their pros and cons. But Soludo has once again presented some strong reasons why he has chosen his own school of thought and they look like facts. Three years of fervent over-regulation has been proven to yield more losses for the country in terms of market performance, job losses, and even the so called embezlement by bank CEOs. Based on this, i prefer Soludo's under-regulation with its shortcommings to Sanusi's over-regulation.


Oga Sir, you've made valid points. However, let it be known that there are some economies more regulated than the Nigerian economy but these economies have still continued to prosper. For example, Chinese economy is not as liberalised as the Nigerian economy. In the Chinese economy, failure to declare the source of your company finance could attract the death penalty. However, China still attracts more FDIs than any developing country. In addition, China mobile a state capitalist is one of the largest telecommunication companies in the World with over 600 million subscribers. Another example is Germany after the Second World War were an interventionist approach was at the core of development. I agree with Soludo when he talks about the quality of leadership in Nigeria. However, they ought to take this into account in their quest for financial development. The economy had a very low absorption capacity and thus financial development only creates further problems which is what we see today and what was also seen in the East Asian financial crisis in the late 90s.

Finally, let it be known that the World is back to depression economics and it is not peculiar to Sanusi's CBN. There are lots of Banks in the UK that have been nationalised. For example, the British government owns over 80% of the shares of the Royal Bank of Scotland. This is what comes after the lax regulations that led to the global financial crisis in 2008. What we saw in those years were artificial growth and not real development. Soludo could quote the market capitalisation at the time to buttress his point. However, we know these things were asset bubbles, it was not the real values of those assets. Regulation was poor and thus there was little or nothing to focus the economy for the long run rather than the short run.
Re: Soludo Takes Lawmakers To School On Capital Markets by Osario: 12:05am On May 18, 2012
Your brain is under-developed
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 12:21am On May 18, 2012
Ufeolorun: This is no relative gaming.Its about the man Soludo,Sanusi is absolutely irrelevant to the discussion.The crux-it's dishonest grandstanding if you create mega banks(The most active sector of the market) who ran away with too many undisclosed related party dealings/transactions,had shocking approach to governance(all under your watch)then you come out with loads of faffs about conventional market problems embarassed.
I am not trying to crash anyone's slobbering circus tent sha grin.
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 12:21am On May 18, 2012
Ufeolorun: This is no relative gaming.Its about the man Soludo, Sanusi is absolutely irrelevant to the discussion.The crux-it's dishonest grandstanding if you create mega banks(The most active sector of the market) who ran away with too many undisclosed related party dealings/transactions,had shocking approach to governance(all under your watch)then you come out with loads of faffs about conventional market problems embarassed.
I am not trying to crash anyone's slobbering circus tent sha grin.
You obviously do not understand the Nigerian Banking system let alone the stock markets. Sanusi is so very 4cking relevant to the discussion cos he came up with the whole Idea of "sanitizing" the system only to stiffle it to a standstill.
You think the Nigerian banking system was immuned from the global financial crisis that started in the US and spiralled into other countries?
For your information, our financial crisis started when the NSE crashed, I mean colapsed to the extent they had to virtually stop transactions. This was because institutional investors were divesting their monies from our capital market to solve their financial problems at home- US and UK. Many of them were getting "marging calls or request" from their banks and brokers as their share values had gone down below the minimum margin requirements offered by their lenders-banks and so on. This divestment from our capital market caused a panic and our banks who also had given margin loans to a lot of its clients started calling their clients to make more payment to shore up their minimum marging requirements on the margin loans extended to them or lose their shares. The effect of that was people selling of their shares and share values crashing down in a twinkle of an eye.
Becaus the banking sector dominated the capital market, they took the fall and banks that had given too much margin loans to both clients and staff were worst hit. There were also huge cases of default on payments, non-serviced loans and loans that eventually went bad as a result. The aforementioned cases still was as a result of the economic crunch that had hit the world at that time, people defaulted on payment not because they chose to but because they clearly could not keep up with the payment giving the economic realities.
Lets face it, Sanusi's reforms have been retrogressive and causing more havoc. Inflation has not gone down rather it is on the increase, people have lost more jobs than would have happened if the situation was handled with professional tact. Borrowing money from the banks is almost an imposible task hence the setting up of all these industry whatever funds here and there whose flows are not as flexible and continuos as those credit lines from banks.
Banks have not stopped incurring bad loans as is seen from the banks that keep selling their bad loans to AMCON.
Soludo may have made mistakes in being so laxed with regulations but he was very clear on where he was steering the economy to.
Infact, Sanusi is as corrupt as the CEOs he prosecuted. If not, tell me how an ordinary manager in a Nigerian premier bank was promoted to the position of the MD within the shortest period of time, even though he had spent a little time in the banking sector and subsequently became the CBN governor just with a Bsc in economics.
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 12:32am On May 18, 2012
ballabriggs:

Unfortunately for you, you have not said anything. It shows you are not sound enough to discern what Soludo said. He has raised his arguments based on his line of thought, the question is which line do you belong. You are an 'Otimkpu'! I don't expect an illiterate like you to understand what I meant. You're an illiterate as you don't seem to understand Soludo's line of reasoning. You come out here to chat poo thinking no one would dissect your poor thought. Shame on your rotten soul! You can go to Onitsha main market where you would confuse your likes and don't come out here spewing rubbish.

Re: Soludo Takes Lawmakers To School On Capital Markets by supremebeing09: 12:56am On May 18, 2012
Aarenaija:

This is too mush sir. they are law makers and came from different
backgrounds, so, that have not make
them lesser than Soludo please. They are also experts in their own field (Many of them).
You too can become a member someday as a Nigerian. Just that some of them are corrupt
and we should not generalize.

Perhaps you're not familiar with the phrase, "ONE BAD EGG SPOILS THE BUNCH". So forgive me for generalising. Are they really lawmakers? They continue to implement childish policies when they do not understand such policies. I beg to differ on the word "experts". They are and will continue to be a bunch of clowns disguised as lawmakers. Until then, they SHOULD continue to be schooled by sound and logical intellectuals.
Re: Soludo Takes Lawmakers To School On Capital Markets by ballabriggs: 1:02am On May 18, 2012
rhymz: You obviously do not understand the Nigerian Banking system let alone the stock markets. Sanusi is so very 4cking relevant to the discussion cos he came up with the whole Idea of "sanitizing" the system only to stiffle it to a standstill.
You think the Nigerian banking system was immuned from the global financial crisis that started in the US and spiralled into other countries?
For your information, our financial crisis started when the NSE crashed, I mean colapsed to the extent they had to virtually stop transactions. This was because institutional investors were divesting their monies from our capital market to solve their financial problems at home- US and UK. Many of them were getting "marging calls or request" from their banks and brokers as their share values had gone down below the minimum margin requirements offered by their lenders-banks and so on. This divestment from our capital market caused a panic and our banks who also had given margin loans to a lot of its clients started calling their clients to make more payment to shore up their minimum marging requirements on the margin loans extended to them or lose their shares. The effect of that was people selling of their shares and share values crashing down in a twinkle of an eye.
Becaus the banking sector dominated the capital market, they took the fall and banks that had given too much margin loans to both clients and staff were worst hit. There were also huge cases of default on payments, non-serviced loans and loans that eventually went bad as a result. The aforementioned cases still was as a result of the economic crunch that had hit the world at that time, people defaulted on payment not because they chose to but because they clearly could not keep up with the payment giving the economic realities.
Lets face it, Sanusi's reforms have been retrogressive and causing more havoc. Inflation has not gone down rather it is on the increase, people have lost more jobs than would have happened if the situation was handled with professional tact. Borrowing money from the banks is almost an imposible task hence the setting up of all these industry whatever funds here and there whose flows are not as flexible and continuos as those credit lines from banks.
Banks have not stopped incurring bad loans as is seen from the banks that keep selling their bad loans to AMCON.
Soludo may have made mistakes in being so laxed with regulations but he was very clear on where he was steering the economy to.
Infact, Sanusi is as corrupt as the CEOs he prosecuted. If not, tell me how an ordinary manager in a Nigerian premier bank was promoted to the position of the MD within the shortest period of time, even though he had spent a little time in the banking sector and subsequently became the CBN governor just with a Bsc in economics.


Unfortunately you are still speaking poo! You have very limited understanding of the issues. People like you would go to your village meeting to confuse them. My friend if you don't know then you get an economist to discern the issues for you. That is the proper thing to do.
Re: Soludo Takes Lawmakers To School On Capital Markets by Onlytruth(m): 2:43am On May 18, 2012
I still remember clearly how I LAMENTED here about Soludo's removal, and how I cried about this evil Nigeria system called quota system and federal character. I knew that there is no way Sanusi would not destroy everything that Soludo achieved for Nigeria. That is why Nigeria cannot be one. It is a cycle that never ends!
Re: Soludo Takes Lawmakers To School On Capital Markets by omoobaagility: 5:12am On May 18, 2012
[quote
author=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[/quote]

they shouldnt hav invite him in d first place
Re: Soludo Takes Lawmakers To School On Capital Markets by raycomray: 5:42am On May 18, 2012
I can see Soludo is receiving praises on this platform. Methinks he was corrupt.
Re: Soludo Takes Lawmakers To School On Capital Markets by olajide8(m): 5:56am On May 18, 2012
hercules07: The simple answer has been provided by Ufe, the banks that fuelled the capital market were doing illegal and criminal acts, once the bubble burst, the market had to adjust itself, Soludo is culpable and should go and sit down somewhere, in saner climes, he will be answering questions over his role in the whole thing.
All said sign sealed and delivered shekena!
Re: Soludo Takes Lawmakers To School On Capital Markets by olajide8(m): 6:21am On May 18, 2012
SLS (experience)
Mallam Sanusi Lamido Sanusi (born 31 July 1961)
was appointed Governor of the Central Bank of Nigeria
on 3 June 2009.He is a career banker and ranking
Fulani nobleman, and also serves as a respected Islamic
scholar.The renowned global financial intelliegence
magazine, The Banker, published by the Financial Times,
has conferred on Mallam Sanusi Lamido Sanusi two
awards. He has been recognised with the global award
for Central Bank Governor of the Year, as well as for
Central Bank Governor of the Year for Africa. The
TIME magazine also listed Sanusi in its TIMES 100 list
of most influential people of 2011
Career banking:
In 1985 Sanusi joined Icon Limited (Merchant Bankers),
a subsidiary of Morgan Guaranty Trust Bank of New
York, and Baring Brothers of London. He moved to the
United Bank for Africa in 1997 in the Credit and Risk
Management Division, rising to the position of a General
Manager. In September 2005, he joined the Board of
First Bank of Nigeria as an Executive Director in charge
of Risk and Management Control, and was appointed
Group Managing Director (CEO) in January 2009. He
was also the Chairman, Kakawa Discount House and sat
on the Board of FBN Bank (UK) Limited. Sanusi is
recognized in the banking industry for his contribution
towards developing a Risk Management culture in the
Nigerian banking sector. First Bank is Nigeria's oldest
bank and one of the biggest financial institutions in
Africa. Sanusi was the first Northerner to be
appointed CEO in First Bank's history of more than a
century
Sanusi was born on July 31, 1961. His father was a
Permanent Secretary in the Ministry of Foreign Affairs
in the 1960s and his grandfather was Emir of Kano and
Islamic Scholar, Alhaji Muhammadu Sanusi. Sanusi
graduated from King's College Lagos in 1977 and
studied at Ahmadu Bello University (ABU), Zaria earning
a BSc in Economics in 1981. He then taught economics
at ABU from 1983 to 1985. He also obtained a degree
in Islamic law from International University of Africa

SOLUDO
Charles Chukwuma Soludo, CFR (born 28 July
1960) is a Nigerian economics professor and the
immediate past Governor and Chairman of the Board
of Directors of the Central Bank of Nigeria (CBN). He
was named Governor on 29 May 2004. He is also a
member of the British Department for International
Development's International Advisory Group.
Career Academia:
Dr Soludo has been visiting scholar at the International
Monetary Fund, the University of Cambridge, the
Brookings Institution, the University of Warwick and
the University of Oxford and a visiting professor at
Swarthmore College (USA). He has also worked as a
consultant for a number of international organizations, including The World Bank, the United Nations Economic Commission for Africa, and the United Nations Development Programme. Soludo is a core professional in the business of macroeconomics. He obtained his three degrees and
then professorship at the University of Nigeria in
Nsukka, Enugu State. He graduated with a First Class
Honors degree in 1984, an M.Sc. Economics in 1987,
and a Ph.D. in 1989, winning prizes for the best
student at all three levels. He has been trained and involved in research, teaching and auditing in such disciplines as the multi-country macro econometric modeling, techniques of computable general equilibrium modeling, survey methodology and panel data econometrics, among others. Soludo studied and taught these courses at many Universities, including Oxford, Cambridge and Warwick. He has co-authored, co-edited and authored about ten books on this subject matter. In 1998 Soludo was appointed to the position of professor of economics at the University of Nigeria; the next year he became a visiting professor at Swarthmore College in Swarthmore, Pennsylvania, US.

Government:
Soludo joined the federal government in 2003. Prior
to his May 2004 appointment to the bank
chairmanship, he held the positions of Chief Economic Adviser to former President Obasanjo and Chief Executive of the National Planning Commission of Nigeria. In January 2008, in a speech to the Nigerian Economic Society, he predicted consolidation in the private banking industry, saying "By the end of 2008, there'll be fewer banks than there are today. The restructuring of the banking industry has been attracting funds from local and foreign investors, which have increased banks' ability to lend to customers". He hopes to see Nigeria become Africa's financial hub,[8] and considers microfinance important to the federal government's economic policies my submission one has earned a living all from private practice while the other all from public practice who should know better since only 2% of our population are in public practice
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 8:11am On May 18, 2012
raycomray: I can see Soludo is receiving praises on this platform. Methinks he was corrupt.
and Sanusi was a saint ??
Can you explain to us all from your clean sheet of incorruptible brilliance how Mr Sanusi the Saint rose to become the CBN governor with a mere 12years experience as A banker with an Msc in Economics if not through Nepotism and mediocre quota system. The man worked as GMD of First bank for only six months before getting the CBN job. His career rise is very very questionable and was never based on merit and experience in the sector.
Sanusi is no saint, if you want us to argue about his policies and haphazard method of implimetations and compare it with his predecessor, Soludo, am all in. But if all we want to discuss is their character and personality then we can continue in this manner, your pick.
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 8:23am On May 18, 2012
ballabriggs:


Unfortunately you are still speaking poo! You have very limited understanding of the issues. People like you would go to your village meeting to confuse them. My friend if you don't know then you get an economist to discern the issues for you. That is the proper thing to do.
Another eeeeediot suffering from diarrhoea of the mouth and constipation of thought.
Obviously, you are angry that you can't intimidate me or anyone here with your mediocre attempt to sound intelligent than you realy are.
This is not your usual beer parlour settings; if you can't stand an intellectual discussion, I advise that you stay quiet in your limited knowledge and learn from your superiors. You will do yourself a whole lot of good if you stop humiliating yourself in a public forum.
Re: Soludo Takes Lawmakers To School On Capital Markets by ballabriggs: 8:48am On May 18, 2012
rhymz: Another eeeeediot suffering from diarrhoea of the mouth and constipation of thought.
Obviously, you are angry that you can't intimidate me or anyone here with your mediocre attempt to sound intelligent than you realy are.
This is not your usual beer parlour settings; if you can't stand an intellectual discussion, I advise that you stay quiet in your limited knowledge and learn from your superiors. You will do yourself a whole lot of good if you stop humiliating yourself in a public forum.

I would tell you again ignorance is bliss. I see you rambling away about interest rates and inflation, it shows you don't have an understanding of basic macroeconomics. It is not difficult to tell that you don't. You get your knowledge based on what you read in the Nigerian media and you write lengthy posts thinking this is your village meeting. My friend it is not too late to enroll in LASU Agege campus. Help yourself and stop showing your ignorance in a public forum as this!
Re: Soludo Takes Lawmakers To School On Capital Markets by ballabriggs: 9:40am On May 18, 2012
rhymz: and Sanusi was a saint ??
Can you explain to us all from your clean sheet of incorruptible brilliance how Mr Sanusi the Saint rose to become the CBN governor with a mere 12years experience as A banker with an Msc in Economics if not through Nepotism and mediocre quota system. The man worked as GMD of First bank for only six months before getting the CBN job. His career rise is very very questionable and was never based on merit and experience in the sector.
Sanusi is no saint, if you want us to argue about his policies and haphazard method of implimetations and compare it with his predecessor, Soludo, am all in. But if all we want to discuss is their character and personality then we can continue in this manner, your pick.

You are an illiterate. A man who worked as a Risk Director in Nigeria's biggest banks monitoring and analysing macroeconomic trends and data does not know anything? Some of you are very ignorant and the more you try to castigate the man it shows how silly you people are. In your brain, every Economist must be an academic and thus be a Professor. How daft you sound. There are Economists in business too, it does not make them lesser Economists. Get that into your shallow brain!
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 10:04am On May 18, 2012
ballabriggs:

You are an illiterate. A man who worked as a Risk Director in Nigeria's biggest banks monitoring and analysing macroeconomic trends and data does not know anything? Some of you are very ignorant and the more you try to castigate the man it shows how silly you people are. In your brain, every Economist must be an academic and thus be a Professor. How daft you sound. There are Economists in business too, it does not make them lesser Economists. Get that into your shallow brain!
hahahahah.... Seriously guy, the more you make an attempt the more blunders you make and expose the fact that you do not know what you are ranting about.
You are worse than I had thought, walahi!!! lmao... What has working in a commercial bank as a risk manager got to do with macroeconomic analysis?
Do you even know the difference between microeconomics and macroeconomics?...lol...chei, na from where this Dunce go school sef....stop acting like you know anything about economics, you are obviously shallow and using borrowed points you do not understand.
Hence forth I shall treat every post you make with utter mockery, you do not have the intellectual depth to argue your with me on this issue, matter of fact, you do not have a point or any knowledge on this issue.
I suspect, you are still in school and reading up textbooks so you can show off...hahahahahhaha....some of us have done that long ago, we are now in the system and know better. I am not an economist but I sure know moderately well enough about economics to know that you know nothing and don not know that you know nothing....lol....hahahaha...what a joke and malady of the mind.
Re: Soludo Takes Lawmakers To School On Capital Markets by ballabriggs: 10:09am On May 18, 2012
rhymz:
hahahahah.... Seriously guy, the more you make an attempt the more blunders you make and expose the fact that you do not know what you are ranting about.
You are worse than I had thought, walahi!!! lmao... What has working in a commercial bank as a risk manager got to do with macroeconomic analysis?
Do you even know the difference between microeconomics and macroeconomics?...lol...chei, na from where this Dunce go school sef....stop acting like you know anything about economics, you are obviously shallow and using borrowed points you do not understand.
Hence forth I shall treat every post you make with utter mockery, you do not have the intellectual depth to argue your with me on this issue, matter of fact, you do not have a point or any knowledge on this issue.
I suspect, you are still in school and reading up textbooks so you can show off...hahahahahhaha....some of us have done that long ago, we are now in the system and know better. I am not an economist but I sure know moderately well enough about economics to know that you know nothing and don not know that you know nothing....lol....hahahaha...what a joke and malady of the mind.

[size=18pt]MUMU! A RISK MANAGER DOES NOT ANALYSE MACROECONOMIC DATA? CHAI SEE MUMU O! [/size]
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 10:29am On May 18, 2012
ballabriggs:

[size=18pt]MUMU! A RISK MANAGER DOES NOT ANALYSE MACROECONOMIC DATA? CHAI SEE MUMU O! [/size]
hahahah.... I can imagine Sanusi in First Bank abi na UBA analysing Unemployment rate, Nigeria's GDP, national output and income, price indexes, Inflation and Deflation rate for their bank before deciding which clients get loans or which businesses should the bank invest depositors' monies on...hahahahha.... You ve got the I.Q of a frog and you know nothing about risk management not to talk of economics. Shut the hell up!! Every statement you make is steeped with stupifying ignorance.
Re: Soludo Takes Lawmakers To School On Capital Markets by Rebirth(m): 11:22am On May 18, 2012
Soludo did not cause the crash in the capital market, the drastic change of government approach to banking sector regulation caused. He was building an liberal market, while Sanusi tried to build a conservative market. Both approaches have their merits and demerits...compare the market liquidity (cash in circulation) while Soludo was CBN gov to the cash liquidity with Sanusi.

I don't blame either of them, rather I blame the government that had a change of governors without considering the impact of the change in approach to the economy.
Re: Soludo Takes Lawmakers To School On Capital Markets by bushwailo: 5:44pm On May 18, 2012
rhymz: and Sanusi was a saint ??
Can you explain to us all from your clean sheet of incorruptible brilliance how Mr Sanusi the Saint rose to become the CBN governor with a mere 12years experience as[b] A banker with an Msc in Economics if not through Nepotism and mediocre quota system[/b]. The man worked as GMD of First bank for only six months before getting the CBN job. His career rise is very very questionable and was never based on merit and experience in the sector.
Sanusi is no saint, if you want us to argue about his policies and haphazard method of implimetations and compare it with his predecessor, Soludo, am all in. But if all we want to discuss is their character and personality then we can continue in this manner, your pick.

Sanusi does not have an MSc. Why do people keep spreading this falsity.
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 6:35pm On May 18, 2012
bushwailo:

Sanusi does not have an MSc. Why do people keep spreading this falsity.
I know, I just had to add that for modesty sake....his claims of Msc in Economics is debatable....i am certain the guy has an Msc in Islamic studies though
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 7:20pm On May 18, 2012
ballabriggs:

[size=18pt]MUMU! A RISK MANAGER DOES NOT ANALYSE MACROECONOMIC DATA? CHAI SEE MUMU O! [/size]
aint you goinna respond again Mr ITK lol... 4cking FU4CKtard that does not know anything and want to argue with his superiors. Come out come tell us as Sanusi is an expert analyst on Macroeconomic thrend because that was the basis of his job as a risk manager while he was working in those commercial banks. Shebi you sabi gist opkata very well, 4ckin cretinous simpleton wey wan feel among.... ode!!!
There's a big difference between the jejune stuff you read on your text book and what practical economics and econometrics are.
Re: Soludo Takes Lawmakers To School On Capital Markets by olajide8(m): 8:31pm On May 18, 2012
The intent of posting their qualification is for you to see which one took the easy route to the CBN governors seat most nigerians you see continue school for 2 reasons the couldn't get a job "or job of their choice" or they needed to move up within their organisation and needed the paper qualification which we so much value in this country, for christ sake sanusi was in addition to the above once the MD of united bank for africa thou was fired by a difference in his point of view and that of keem bello osagie, soludo is a smooth talker any day anytime and issues of just a singular policy universal banking has caused all these issues small and simple as it looks its the cause.
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 8:43pm On May 18, 2012
olajide_07: The intent of posting their qualification is for you to see which one took the easy route to the CBN governors seat most nigerians you see continue school for 2 reasons the couldn't get a job "or job of their choice" or they needed to move up within their organisation and needed the paper qualification which we so much value in this country, for christ sake sanusi was in addition to the above once the MD of united bank for africa thou was fired by a difference in his point of view and that of keem bello osagie, soludo is a smooth talker any day anytime and issues of just a singular policy universal banking has caused all these issues small and simple as it looks its the cause.
I dont realy understand the point you are trying to make, Sir. Could you be more coherent and straightforward.
Re: Soludo Takes Lawmakers To School On Capital Markets by olajide8(m): 3:26pm On May 19, 2012
rhymz: I dont realy understand the point you are trying to make, Sir. Could you be more coherent and straightforward.
I would try to be as explicit as possible bearing in mind that its my opinion, now prior to the introduction of universal banking we had a proliferation of banks and banks were categorized into retail banks, whole sale banks, trading banks, merchant banks mortgage banks and investment banks, bearing this in mind most of the banks did business some on a small scale and some on a larger scale the financial services market then had room for finance houses, bureau de changes and discount houses because some of these banks had to do business with each other ie over night lending to each other, while also bearing in mind that their main line of business was foreign exchange buying and selling , now as a result of the then Governor's new policy he wanted nigerian banks to be internationally acceptable-fine! as I guess he also needed a frame work to work with as a lecturer or research person, their own goal was to make nigeria the financial hub of africa, and the need to make them "nigerian banks" international acceptable, a be able to play a role in the international oil and gas sector of the worlds economy as well as provide funding for big time oil and gas business transactions which are still largely financed by international banks, the question then was? Is this possible when our banks can not avail manufacturers within nigeria long term loans to create a source of finance? And are we ripe for this kind of policy, also bearing in mind the fact that we "nigeria" is a consumer country, and developing country "note we have to learn to crawl before we walk and run, and its not possible to jump all these stages, we have to produce generate real income before we can decide to become the financial hub of africa as "soludo" said, and wanted, and in my own point of view if we want to become a financial hub we have to have real wealth, which comings from manufacturing science and technology, further more foreign investors invest in real tangible products and not air ", that said, a Governor came on board and said his policy was targeted at unifying all the various financial services providers causing so many of them to either fold up(noting the job losses that followed this policy), be acquired or merge to meet with the new Govt., policy of the governor which sanusi said was a "trial policy" (to see if it would work) by the Apex bank, bearing in mind it wasn't a NATURAL development bank recapitalisation for unifying the banks services(anything built without a foundation would definitely collapse), but one which required, a fire brigade approach -immediately, so what did they do, banks with different lines of businesses came together without the proper framework and some took advantage of the gaps to enrich themselves those that had more funds brought out those with little and where their was no agreement they were winded up, a bank now could do mortgage, insurance, wholesale investment, retail, bureau de change, trading, et al (jerk of all master of none) now upon this they also had to borrow money internationally to meet up with their capital base requirements N25b then wasn't small money O! while also going to the market to raise investible funds to meet up with their own equity contribution, which they did successfully (also note these funds are short term based for financial services organisations, which in turn lead to the crazy targets given to marketers to attain then, so they could repay their lenders and that's why marketers went after fixed deposits like no mans business), government then encouraged foreign investors that never believed these banks could raise their equity contribution locally to invest in nigeria, bearing in mind they also needed fundings to meet up with their loan obligations and customer liabilities in their home countries as they are also doing local banking, now they come with their own various associates or arms and come into the capital market where they saw the so called "universal banks" were able to raise equity from, they then use their names and profiles to borrow money to trade in the Capital market on other banks shares, further using their own funds invested in the banks, that are now "universal banks" this continues and profit is been taken, from 2 points, from a loan borrowers point of view, and interest being paid on the loan and from a market players point of view operator, of these institutions all because of universal banking, now a player in the industry is now appointed "SLS" as Gov., after looking at all the games being played by his fellow operators insists that banking supervision should be further looked at and those that destroyed the then beautiful idea of his predecessor should be looked at critically and investigated which soludo didn't do because he had believed they would be honesty at a policy they all came together to adopt! Now my take as always what an "experienced" old man would see sitting down a child even if he climbs the tallest iroko tree wouldn't see it (what is age/wisdom -first hand experience in the practice) and that is what SLS brought to the table which soludo in my opinion didn't have he never ran a bank even for 30mins to know what overheads they actual pay how human beings react, how balance sheets are falsified based on what the bank accountants give the auditors, to decisions on how to create wealth, by thinking of businesses, to do with bank funds in their custody that is what Sanusi brought to bear in my opinion and not certifications and smooth talking (This is a bit of digression their is a school in the east of nigeria university of environmental sciences with more than 15 professors and they can't find a solution to erosion problem which is parting away with part of the school premises and they are asking for government funding and help to solve a problem that they teach students on board to solve, and then the central bank is now headed by another one of those professors, and you say because he is a smooth talker he is better look at the antecedents) a developing country needs hands-on expertise, even in the uk their are 2 types of accounting courses - accountancy & applied accounting this arose as a result of a need. And that's my point of view
Re: Soludo Takes Lawmakers To School On Capital Markets by manny4life(m): 4:42pm On May 19, 2012
^^^

Sir, please do you mind using punctuation such as period, paragraph and do justice to your post?

Omexonomy:
stop the insult. What kind of question do you think a bsc holder can ask a proff. When our universities rank 8600 according 2 you


Many questions, if they took the time to LEARN. In the U.S., Senators and Reps prepare way before the hearing, gathered information as they needed. Their aides contact experts in the field who brief them in the advancement of the hearing.

ballabriggs:

[size=18pt]MUMU! A RISK MANAGER DOES NOT ANALYSE MACROECONOMIC DATA? CHAI SEE MUMU O! [/size]

No, a risk manager DOES NOT analyze micro nor macroeconomic data. That is the job of an economist, economic analyst, econometrician, statistician, etc. Like @ryhmz said, SLS IS NOT an economist... Period.
Re: Soludo Takes Lawmakers To School On Capital Markets by hercules07: 4:59pm On May 19, 2012
Olajide leave them alone, it is because Sanusi is an aboki and has shown that their professor Soludo did not supervise the banks properly that is why they are after him. Soludo that should just sit in one corner without us hearing him.
Re: Soludo Takes Lawmakers To School On Capital Markets by FrankC3: 5:07pm On May 19, 2012
@olajide
are you saying that the market crunch was caused by Soludo's consolidation policy, and by implication the consolidation was ill advised and wrong? You also seem to quarrel with the idea of making the most populous black nation the financial hub of africa despite her potentials. Please, educate me on why the 7th oil exporter cannot(no should not) finance her oil deals locally and why it is better for them to finance it from europe and america.
Finally, to prove the excellence of your idea, kindly point out how Sanusi's policies of 'conservative economics' (as you seem to be advocating) had changed things for the past three years. Mind you, the only achievement(very debatable claim cos we know what his appointed CEOs did despite the sterling corporate governance built in by Sanusi) of Sanusi so far is that he sanitized the banks. Now, please tell me how to measure how sanitized banks are.
Re: Soludo Takes Lawmakers To School On Capital Markets by juman(m): 5:44pm On May 19, 2012
Big part of the money garnered by the banks from the consolidation process was spent recklessly around the world by the bank owners buying houses and such.
Re: Soludo Takes Lawmakers To School On Capital Markets by olajide8(m): 1:12am On May 20, 2012
Frank-C:
@olajide
are you saying that the market crunch was caused by Soludo's consolidation policy, and by implication the consolidation was ill advised and wrong? You also seem to quarrel with the idea of making the most populous black nation the financial hub of africa despite her potentials. Please, educate me on why the 7th oil exporter cannot(no should not) finance her oil deals locally and why it is better for them to finance it from europe and america.
Finally, to prove the excellence of your idea, kindly point out how Sanusi's policies of 'conservative economics' (as you seem to be advocating) had changed things for the past three years. Mind you, the only achievement(very debatable claim cos we know what his appointed CEOs did despite the sterling corporate governance built in by Sanusi) of Sanusi so far is that he sanitized the banks. Now, please tell me how to measure how sanitized banks are.

@manny sorry for not putting the punctuation's where they should be, sometimes while typing from a mobile phone you just can't seem to notice.
@frank-C the market crunch was not caused by the consolidation of banks it was caused by a lot of things from my point of view but the near by total collapse of the financial system in nigeria was caused by unified banking, now how can a country say it wants to become a financial hub realistically when the antecedents are not real, technology, production of cars, manufacturing brings in income, via both importation and exportation for foreign exchange, imagine how much income would accrue to us if we package tapioka flakes or something else, which are used in doing drugs and export our excess to other countries and practically dump them their look at the income to the companies that manufacture the flakes, and their banks, as account holders, COT, export financing etc( their is a principle in banking which states or believes that of 100% of the funds put in banks 70% would be spent while 30% would be saved in most ideal developed economies) now imagine that difference from about 1000 account holders both corporate and individual, fixed by the owners of the fund for say about 3-4 years, those are medium-long term funds for some small scale manufacturers to make use of, by banks, this would in turn generate wealth, from all sides and reduce defaults by lenders, interest rates would be lowered as a result of reduced risk, and this would enable banks give moratorium on loan offers, before they enforce you to start paying bank the loans, this is what should be regulated and then other people would automatically come in search of these funds, from outside nigeria for investments in nigeria, this would then make nigeria the true financial hub. Oil and gas investments are no cheap investments and returns don't come immediately, ask femi otedola, its also a high risk industry ask chevron and shell, that have to pay different penalties for various issues these funds, our local banks can't muster, the reason why? is so simple how can majority of nigerian's save when they don't even have enough to manage them selves with, and the little they are supposed to set aside inflation has wiped out, with all the oil we have ask mobil, chevron where they get funds to finance their projects, HSBC, citibank and etc because believe it or not all businesses operate on loans, which bank in nigeria can singularly pay for 30% stake in an oil block on behalf of a customer, of about $300 million for a duration of 15years if they don't have long term funds how many nigerian's can set that aside while waiting for other paper work, except a few corrupt persons now look at a bank that doesn't have these long term depositors funds, because personally the owners wipe their account clean before the end of the month, to make use of, how would these local banks maintain a tangible liquidity level while trying to handle such a project involving oil and gas? though we need to look for how to finance it locally because with that we would finally emerge as an economy, now look at a country like the U.S, where just a customer would have that kind of money lying fallow in a fixed deposit account they can afford to do that kind of business and still meet up with their obligations to small account holders.
With reference to "conservative economics" kudos should be given to the Current Governor, he has tried to manage the system in a recessive economy, and I sincerely don't think you are referring "SLS" as a conservative economist or his conservative"ness", just look at the risk he is taking through, the bank of industry to start real growth in the economy/industry manufacturing (thou they still have to expand the scope and put in more money and reduce the bureaucracy, I haven't collected my loan after it has been approved and any offer letter given to me since Nov last year) he has tried to make people produce locally, what did the policy of the previous Governor do enrich those at the helm of the echoleon of banks, he took the first step, before NOI followed suit, to the claim of sanitizing banks, I may not be able to give you facts and figures but as a formal stockbroker let me tell you their must be some parameters, they would have set, but trying to bring out the issue in the easiest manner, I would use a hypothetical example, an organisation has shares of a total of 10units and the company is owned by 10 people costing N1 their for the true value of the company is N10, and meaning one for each person, now that bank decides to raise money and each owner divides their shares equally into 10 meaning they now have 100, and they tell you they are worth N100 but truly they are only worth N10, they now say, they are selling out according to law 40-50% of their shares, at the same N1 meaning they have collected N25 for themselves from you as owners of the business, still keep their 50% ownership and then they tell you from their prospectus, that they are investing in expansion, while they put some crazy figures for buying software and upgrading, they now tell you about their subsidiaries, and allocate some figures which they would invest in their subsidiaries which stand at about only 25% of the investment in the subsidiary, while they have 75% ownership with your own money, an example is UBA assets, UBA international markets etc, zenith bank and visa phone, now what they are now doing is if you raise funds for expansion upgrading or investment they look at your books and make sure that is what the money is used for "banking supervision" if a bank shares are owned by the CEO's get them out of the system because they hold to much of the shares and are in actual fact cheating you and I, "investors" by using your own money to buy you out and taking the profit, while cooking up figures, and that was "part" of what, I guess he was trying to sanitize also the way loans are given out the crazy targets etc
Re: Soludo Takes Lawmakers To School On Capital Markets by rhymz(m): 2:55am On May 20, 2012
I will also try to be very coherent as possible in responding to some of the issues you raised albeit most of it is steeped with hearsay and emotional tantrums, but like you cautioned, they are your opinions and do not neccessarily represent facts.
Now, coming to address the nitty-gritty of your argument, it should be noted that prior to Soludo's era, the Nigeria financial sector was nothing to write about. It was just a cacophony of banks that could not do real bank business that stimulated the economy, they were just mere deposit houses with no serious financial power to stimulate serious economic activities. These banks were more or less useless both to their commercial purpose and to the economy. You couldn't borrow money from them to fund a medium sized project let alone a big one. Politicians were setting up banks at will as conduit pipe to siphone public without any serious capital base to protect depositors-savana comes to mind- neither were they competetive, the whole financial sector was a shambolic set up.
Soludo came, understanding that our financial system needed an overhaul; the number of banks had to be pruned to manageable size with stronger financial base and better coperate structure to be taken seriously. Hence, the introduction of the consolidation exercise in 2004 which required banks to recapitalize their financial base from 2billion to 25billion naira.
Despite growing fear and concern, the exercise was successfully concluded by December 31, 2005. By the time it was over, the number of banks in Nigeria had dropped from 89 in 2004 to 25 in 2006. As a result of the recapitalisation, five Nigerian banks were then among the first 500 in the world. They were First Bank of Nigeria PLC, Intercontinental Bank PLC, Zenith Bank PLC, Union Bank PLC and United Bank for Africa PLC.
Under his leadership the CBN pursued vigorously the acquisition of the ailing Nigeria Security Printing and Minting Company, NSPMC, by the CBN in 2004 and transformed the institution into a profitable venture in 2007 and saved the country the disgrace of depending on importation to meet its currency needs.
Just like he did with the commercial banks to make them strong and effective, in 2006, he launched another recapitilization of the micro finance banks to replace the community banking system and fixed the capital base to operate MFB at N20 million. With that, was the birth of over 900 micro finance banks that provided credit facilities to the poor without collateral. The CBN also backed up the micro finance institutions with the establishment of entrepreneurial development centres to teach the poor how to manage finance profitably.
Coming to the impact of his policies which actually showed his understanding of Nigeria's financial sector, macroeconomic trends and the economy as whole: please allow me to quote from a Nigerian online financial report.
THE IMPACT OF SOLUDO'S CBN POLICIES ON THE NIGERIAN ECONOMY When Soludo assumed the leadership of Nigeria’s apex bank in 2004, inflation rate was 10 percent. It went up to 11 percent in 2005 before declining to 8.5 percent and 6.4 percent in 2006 and 2007, respectively. The CBN sustained the single-digit inflation rate till the middle of 2008 when global food shortage and financial crisis drove it up to 15 percent. According to the CBN, the average inflation rate in 2008 was 11.6 percent. Likewise, the average lending rate went down from 20.42 to 18.22 percent between 2004 and 2008. The exchange rate of the Naira to the United States’ Dollar also came down from N132.75 to N116.85 between June 2004 and June 2008. The Bureau De Change, BDC, rate within these periods decreased from N140 in June 2004 to N119 in June 2008. Currently, the value of the Naira to the Dollar has depreciated by 24 percent at the official market as it exchanges at N145 to the Dollar. The parallel market rate is as high as N180. The performance of Nigeria’s gross domestic product, GDP, achieved a steady growth between 2004 and 2008. The estimate as at then from the National Bureau of Statistics indicates that Nigeria’s GDP grew by 0.8 in 2008 compared to 6.2 percent in 2007. The rise in foreign reserve from $ 11.44 billion in June 2004 to $60.89 billion in August 2008 attests to the positive impact of Soludo’s first five years on the economy. The consolidation exercise also had a significant impact on the banking sector. It increased the total capitalisation of the banking sector from N315 billion in 2004 to N2.788 trillion in December 2008. Bank’s credit to borrowers grew from N1.133 trillion in 2004 to N7.8 trillion in 2008. The number of bank branches also rose from 3,247 in 2004 to 5,247 in 2008. In the same way, the number of the foreign branches of Nigerian banks increased from seven in 2004 to 69 in 2008. The enhanced banking supervision and enforcement of corporate governance by the CBN under Soludo reduced the percentage of non- performing loans in the banking sector from 21.6 in 2004 to 6.226 in 2008. The exercise also increased the access of Nigerian banks to international credit line.
Unless you have a personal scores to settle with Soludo, I see no reason why anyone will criticize his consolidation exercize like you are trying to do. It is now easy for Nigerians like yourself to take the achievements of the consolidation exercise for granted because it had come and gone, have you considered what would have been the fate of the Nigerian banking sector and the entire economy if Soludo had not exercised the foresight to implement the policy some years before the global financial whirlwind started blowing. Of course, If it were to be those days that we had relatively small capitalised banks, not even the First Bank of 2004 could have withstood this crisis.
You can fault Soludo for not being pre-emptive in the regulation of the banks especially after a lot of them had a change of financial status from small banks to realy big banks. He probably should have been more strict with the changes that came in the banks. He was lax no doubt and allowed many underdealings. However, we can't ignore the fact that vindictive politics too played its on role in the latter part of his reign and made him lose focus and effective edge. For example, it was obvious that he did not enjoy the support of late Pres.Yaradua and He kept reversing some of his policies and dancing to the demands of northan oligarch that felt shortchanged by his policies.
To deny Soludo of his contributions and highlight most of the times only his mistakes while singing Sanusi's praise is very dishonest.
We all know that Sanusi was not the best man for the Job but Nepotism made sure he got the Job anyway. As if that was not enough, Sanusi went in and threw away the baby with the bath water. His handling of his so-called sanitization program was shambolic and gangstar in application. Today our banks have once again become mere deposit houses and gradually there is a monopoly going on. The forced mergers and aquisitions are time bombs waiting to explode most of them are still subjects of serious litigations on various court. As it is now, non of the banks is lending to the economy. The impact of his policies are mostly negetive and thesame old story before the Soludo Era.

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