smarth-G:
I was just going through this now in a daily news paper guardian of 18-07-2012
the problem now were will all these end?

Sanu-Nsi is obviously a demon possessed leader that knows how to deceive.

Enough is enough. I know this is the plot of the house of reps. If u followed initially,he exposed to d public that the members of house of reps were embezzling public fund which is true. The members denied d claim and demanded an apology which sanusi refused to give them. Not wanting to admit to d truth, they plotted to reduce his power and frame him of crimes he didn't.

Lordave: Wetin dis mallam wan embezzle 4? I tot fraudsters are only synonymous in d south.

Sebi Babangida and Abacha are Southerners.

haha, Nigeria. Una just dey make person laugh everyday. Story upon story.

But seriously, is there any saint in this country? Even we wey dey laugh SLS

and this man's fake ideologies is the reason why more than 10,000 Nigerians are sitting down at home jobless! SMH*

As a trained Finance person, watching the so called 'probe' would make you ashamed of our legislators. What was the scope of this probe? What vital recommendations to ensure a more robust capital market? I have not seen any. How do we enhance corporate governance codes? Do we employ statutes or a comply or explain approach? What roles for non-executive directors? How do we enhance the efficiency of board operations of public quoted companies? These are vital questions which a "capital market probe" should answer. However, this shame of a probe was not directed at this rather it was more concerned with how Madam Oteh consumed 85000 naira food. How material is that to ensuring the robustness of the capital market?

Only a fool would believe the claptrap of Mainstream bank having an ordinary share capital of 100000. Not even my Aunts buka in PH has such as its share capital. These men we have a legislators are jokes, how do you probe when you do not know the basics? It is not difficult to tell that most of them have lost shares in these nationalised banks thus forming the basis of the so-called 'probe'. Is bank nationalisation perculiar to Nigeria? Northern Rock was nationalised, the UK government owns 80% of RBS, Lloyds TSB with its parent in the US is 40% owned by the British government, so why the hullabaloo? If legislators had taken a robust approach to corporate governance issues, this mess would not have been. That is what Legislators all over the World are engaged in- enhancing corporate governance code.

Adeniyi A.:
if u ar a nigerian n u're not corrupt say 'aye' (ai)

The nays av it! Lol

we are heading somewere,but before
we get there we need to know who is
who. if you are good,keep good. if you
are bad keep bad. we are heading somewere,but before
we get there we need to know who is
who. if you are good,keep good. if you
are bad keep bad.

Where were GEJ & finance minister wen sanusi was packaging all these, were they not aware or don't they work again in their offices. Infact i think we need to hire americans to handle our finance, power, security & oil for atleast a yr

ballabriggs: As a trained Finance person, watching the so called 'probe' would make you ashamed of our legislators. What was the scope of this probe? What vital recommendations to ensure a more robust capital market? I have not seen any. How do we enhance corporate governance codes? Do we employ statutes or a comply or explain approach? What roles for non-executive directors? How do we enhance the efficiency of board operations of public quoted companies? These are vital questions which a "capital market probe" should answer. However, this shame of a probe was not directed at this rather it was more concerned with how Madam Oteh consumed 85000 naira food. How material is that material to ensuring the robustness of the capital market?

Only a fool would believe the claptrap of Mainstream bank having an ordinary share capital of 100000. Not even my Aunts buka in PH has such as its share capital. These men we have a legislators are jokes, how do you probe when you do not know the basics? It is not difficult to tell that most of them have lost shares in these nationalised banks thus forming the basis of the so-called 'probe'. Is bank nationalisation perculiar to Nigeria? Northern Rock was nationalised, the UK government owns 80% of RBS, Lloyds TSB with its parent in the US is 40% owned by the British government, so why the hullabaloo? If legislators had taken a robust approach to corporate governance issues, this mess would not have been. That is what Legislators all over the World are engaged in- ensuring a robust corporate governance code.

my broda if exposing d under belle of these crook regulators would take us any futher, so be it. Why would they shroud their activities in so much secrecy? Do u knw d shareholding structure of any of d nationalized nigerian banks? Must nationalization be synonymus with loss of jobs n shareholdings? Why did'nt cbn explore d existing shareholder recapitalization option? Why nationalize b4 ur own set and agreed deadline? Which foreign investment can these brand of nationalization attract? Lets face it. Any reform that produces a vicious cycle of unending job n shareholding losses is satanic, misplaned n misexecuted. Whats d state of d uk banks u mentioned earlier n wats d state of our now? Enough said!

dougivilla: my broda if exposing d under belle of these crook regulators would take us any futher, so be it. Why would they shroud their activities in so much secrecy? Do u knw d shareholding structure of any of d nationalized nigerian banks? Must nationalization be synonymus with loss of jobs n shareholdings? Why did'nt cbn explore d existing shareholder recapitalization option? Why nationalize b4 ur own set and agreed deadline? Which foreign investment can these brand of nationalization attract? Lets face it. Any reform that produces a vicious cycle of unending job n shareholding losses is satanic, misplaned n misexecuted. Whats d state of d uk banks u mentioned earlier n wats d state of our now? Enough said!

What jobs? Jobs based on asset bubbles? There were no assets for these jobs to manage, all was based on what we call a 'money illusion'. The moment the bubble burst, it was time to let these jobs go. It is not peculiar to Nigeria alone. Prior to the global financial crisis, banks had been exposed to very toxic assets. With the huge loss from these assets, it was time to live within their means. There have been massive job losses in even more robust financial environments. HSBC and Lloyds TSB had to shed its workforce. Till date they are still laying off employees. Look at the Euro zone and the Spanish banks, it is the same situation. The primary focus of the CBN is to protect depositors and not employees given the damning social effect of a fall in aggregate savings.

Should banks live above their means? Should we allow them take very risky investments considering the social effect of a bank failure?

SLS is a rigid square peg in a round whole, a Boko Haram in CBN. SImple

ballabriggs:

What jobs? Jobs based on asset bubbles? There were no assets for these jobs to manage, all was based on what we call a 'money illusion'. The moment the bubble burst, it was time to let these jobs go. It is not peculiar to Nigeria alone. Prior to the global financial crisis, banks had been exposed to very toxic assets. With the huge loss from these assets, it was time to live within their means. There have been massive job losses in even more robust financial environments. HSBC and Lloyds TSB had to shed its workforce. Till date they are still laying off employees. Look at the Euro zone and the Spanish banks, it is the same situation.

i agree wit u. But Did the staff and shareholders also go home empty handed like we av here? Thats d point. Here personal gains r placed above comon gud. U seize a man's investment, demonize him via media trails, rename d institution, hand it over 2 cronies and try 2 bamboozle us wit nationalization anthems. These guys r simply crooks!

@Ballabriggs


I agree with the fact that entrenching corporate governance and other associated regulations should be the focus of the legislators. But I have been around for some time now to know that in Nigeria, there is no smoke without fire. The whole exercise might also be due to the fact that some of the legislators have vested interests.

But as Dougvilla suggested, SLS should have considered other options rather than the method it employed which was shrouded in secrecy.

If the government had bailed out the banks and hence nationalised, was the government able to recoup its investment given that the banks were auctioned at salvage values?

Will the CBN be humble enough to admit that the people it appointed to manage the affairs of the banks failed to achieve the mandate given to them?

However, given the fact that CBN is a public institution we must know how those banks were sold.

I also don't agree with those saying that the legislators should not tamper with the CBN's autonomy. Some levels of independence yes, but outright autonomy NO.

I felt it was condescending when the CBN governor was telling the legislators that it could not present its budget to the NASS. Where does the CBN derive its power from? if Soludo had hoodwinked OBJ into that gaffe, I think now is the time to correct it.

How can CBN, NNPC etc. be considered untouchables? There is so much corruption going on in these places because they are beyond reproach. It is not about individuals, but the institutions must be accountable.

Corruption is a cankerworm that has eaten deep into every aspect of governance,we cannot afford such luxuries. I don't think the head of the Federal Reserve has such powers.

dougivilla: i agree wit u. But Did the staff and shareholders also go home empty handed like we av here? Thats d point. Here personal gains r placed above comon gud. U seize a man's investment, demonize him via media trails, rename d institution, hand it over 2 cronies and try 2 bamboozle us wit nationalization anthems. These guys r simply crooks!

Firstly, when Intercontinental bank was having liquidity problems which was evident in its decision to increase its minimum balance for savings accounts to 10000 naira from 1000 naira without enough notice to depositors, Sanusi was not the CBN Governor then. These banks at the time were struggling to meet their obligations to depositors. Should they have been given more time thus inflicting serious financial harm on depositors? The truth is many bank assets are illiquid and thus cannot be sold off quickly to meet the demands of depositors without a substantial loss to the bank. In addition, also note the contagion effect of a bank failure on the macroeconomy as banks move assets among themselves. Should the CBN fold its arms and watch the situation degenerate into a financial crisis? Of course there are lessons to be learnt from the events in East Asia in the late 1990's.

I wonder what you mean by "a mans investment" when his capital has been eroded by a fall in the value of his assets. Even at that the shareholders were still allowed to hold some shares in these banks albeit at a small value due to the dillution of their holdings by the bailout of the CBN. This is similar to the case of Northern Rock where compensation for shares was at 5p per share in 07/08 compared to the value at flotation which was at 5 pounds per share.

On staff going home empty handed, I don't know of any staff who was laid off without receiving his redundancy payments. So you could please explain better.

Should we have put more funds in these banks where corporate governance and internal controls are flawed? A bank which was insider dominated? Is there no moral hazard in doing this? How do we enhance Financial reporting? What is our level of compliance with the International Financial Reporting Standards (IFRS)? How do we ensure that listed entities disclose material items in annual reports? If a bank is in trouble, do we as creditors not deserve to know?

These are fundamental questions to be answered and the mediocre process by the house did not answer these questions. It was directed at persons rather than addressing the fundamental issues in the system.

I just loathe reading all this reports either true or not, they all just get missing at the end of the day without anyone doing anything about it. So what is the use in the first place. The Senate and the house of representative has been become rather a toothless bulldog. Withal their recommendation on the sack of the Director BPE. Catch my drift it's just a useless and wasteful exercise.

pcicero: @Ballabriggs


I agree with the fact that entrenching corporate governance and other associated regulations should be the focus of the legislators. But I have been around for some time now to know that in Nigeria, there is no smoke without fire. The whole exercise might also be due to the fact that some of the legislators have vested interests.

But as Dougvilla suggested, SLS should have considered other options rather than the method it employed which was shrouded in secrecy.

If the government had bailed out the banks and hence nationalised, was the government able to recoup its investment given that the banks were auctioned at salvage values?

Will the CBN be humble enough to admit that the people it appointed to manage the affairs of the banks failed to achieve the mandate given to them?

However, given the fact that CBN is a public institution we must know how those banks were sold.

I also don't agree with those saying that the legislators should not tamper with the CBN's autonomy. Some levels of independence yes, but outright autonomy NO.

I felt it was condescending when the CBN governor was telling the legislators that it could not present its budget to the NASS. Where does the CBN derive its power from? if Soludo had hoodwinked OBJ into that gaffe, I think now is the time to correct it.

How can CBN, NNPC etc. be considered untouchables? There is so much corruption going on in these places because they are beyond reproach. It is not about individuals, but the institutions must be accountable.

Corruption is a cankerworm that has eaten deep into every aspect of governance,we cannot afford such luxuries. I don't think the head of the Federal Reserve has such powers.

Firstly, on government recouping investment, AMCON still holds a considerable interest through the toxic assets which it bought in these banks.

Secondly, on the banks sold off at salvage value. I would draw you to the case of Barings bank founded in 1762. In Singapore in the 1990s' Barings traders had engaged in very risky investments. By 1995, these traders had generated losses totalling 827 million pounds, twice the bank's available trading capital. What eventually happened? In 1995, Barring was purchased by ING for a nominal sum of 1 pound only and assumed all its liabilities. So I don't know what you mean by salvage value when your buyer assumes all yor liability which is an additional cost to him.

On CBN submitting budgets to the NASS. I say FA FA FA FAOOOO!!! It is not about Lamido Sanusi but preserving the CBNs autonomy. The CBN must not be exposed to the influence of Politicians given the technicalities in most decisions made. I even want to see the President ceasing to appoint our CBN head. In addition, given the fast pace of the monetary and financial systems, the CBN needs to make decisions which includes budgetary decisions promptly to meet the needs of the ever changing financial and monetary system. Where we create further bureaucratic bottlenecks, how do we ensure an efficient CBN to meet the challenges of the monetary and financial environment? Autonomy without the autonomy to make budgetary decisions is no autonomy.

What can be done? If NASS feels it further needs to scrutinise the CBN, here is an option. Can we have a CBN board with more non-executive directors that includes at least two members of NASS? This is a more robust option that would fulfill the NASS desire to further scrutinize the CBN and also preserve the autonomy of the CBN.

usermane:
Enough is enough. I know this is the plot of the house of reps. If u followed initially,he exposed to d public that the members of house of reps were embezzling public fund which is true. The members denied d claim and demanded an apology which sanusi refused to give them. Not wanting to admit to d truth, they plotted to reduce his power and frame him of crimes he didn't.

.

Oh, SLS is an upright man. His deeds are for the common good of nigeria, oh, he loves this country and he's helping to flush Corruption. Don't mind them, they just wanted to reduce his power because he exposed them. Can u listen to urself again? Damn u...
Sanusi Lamido Sanusi (666) the anti-Christ himself, ride on!

ballabriggs:

Firstly, on government recouping investment, AMCON still holds a considerable interest through the toxic assets which it bought in these banks.

Secondly, on the banks sold off at salvage value. I would draw you to the case of Barings bank founded in 1762. In Singapore in the 1990s' Barings traders had engaged in very risky investments. By 1995, these traders had generated losses totalling 827 million pounds, twice the bank's available trading capital. What eventually happened? In 1995, Barring was purchased by ING for a nominal sum of 1 pound only and assumed all its liabilities. So I don't know what you mean by salvage value when your buyer assumes all yor liability which is an additional cost to him.

On CBN submitting budgets to the NASS. I say FA FA FA FAOOOO!!! It is not about Lamido Sanusi but preserving the CBNs autonomy. The CBN must not be exposed to the influence of Politicians given the technicalities in most decisions made. I even want to see the President ceasing to appoint our CBN head. In addition, given the fast pace of the monetary and financial systems, the CBN needs to make decisions which includes budgetary decisions promptly to meet the needs of the ever changing financial and monetary system. Where we create further bureaucratic bottlenecks, how do we ensure an efficient CBN to meet the challenges of the monetary and financial environment? Autonomy without the autonomy to make budgetary decisions is no autonomy.

What can be done? If NASS feels it further needs to scrutinise the CBN, here is an option. Can we have a CBN board with more non-executive directors that includes at least two members of NASS? This is a more robust option that would fulfill the NASS desire to further scrutinize the CBN and also preserve the autonomy of the CBN.

Abegiii, spare us ur history lessons and all ur quoted financial technicalities. We all knew dat d banks were going under and needed a drastic solution to keep them afloat but not expecting the tribal/religious and fraudulent ways SLS dealt with the banks. Can u explain the situation of IBPLC merger with Access? If u can convince the house that it was duely and legally passed on, then i can listen to u.

jammer777: .

Oh, SLS is an upright man. His deeds are for the common good of nigeria, oh, he loves this country and he's helping to flush Corruption. Don't mind them, they just wanted to reduce his power because he exposed them. Can u listen to urself again? Damn u...
Sanusi Lamido Sanusi (666) the anti-Christ himself, ride on!

Now,i nvr said this news was true or false bt i said it is all d handwork of the greedy,vengeful and retaliating house members. For nw i choose to b silent on this issue.
One advise though 4 folks lyk u who just jump into conclusion after reading a news headline - "NVR BELEIVE D MEDIA AT ONCE,THE MEDIA CAN NO LONGER B TRUSTED,THEIR NEWS ARE BEING MANIPULATED BY D CORRUPT GOVERNMENT OFFICIALS SO THAT WE ONLY HEAR OR SEE WHAT THEY WANT US TO. ANY TRUE DETAIL THAT EXPOSES THEM AS CRIMINALS ARE REMOVED FROM D NEWS OR REPLACED WITH MORE LIES. SO GUY/GIRL,INSTEAD OF U JUST BELIEVING THIS HEADLINE, GO AND HONESTLY AND JUSTLY SEARCH FOR MORE TRUTHFUL DETAIL ON THIS ISSUE B4 U START BASHING A MAN THAT HAVE NOT BEING PROVEN GUILTY JUST BECOS OF YOUR SELF DEVELOPED HATRED FOR HIM AND YOUR SENTIMENTAL VIEWS

Dt Mallam Sanusi is realy a devil incarnate.afta failing in d bid 4 Islamic banking,he's nw applying 'plan B' 2 secure a financing medium 4 dz 'Boko group of companies'.he shld b watchd...we shld all b alert

youngies:
You can only succeed if you make me your Finance Minister. . .trust me

You can be appointed only if you make me governor of the CBN.....trust me

I posted this last year on the shortchanging of the Nigerian people in the sale of some banks and some people took it personal. The issue is this: Sanusi is a rogue though a lot of our lawmakers are thieves as well. https://www.nairaland.com/779467/access-intercontinental-bank-fraud-picture

Adeniyi A.:
if u ar a nigerian n u're not corrupt say 'aye' (ai)

Ai... Gba-gba-gba(hammer sound) The 'nays' have it

ballabriggs:

Firstly, when Intercontinental bank was having liquidity problems which was evident in its decision to increase its minimum balance for savings accounts to 10000 naira from 1000 naira without enough notice to depositors, Sanusi was not the CBN Governor then. These banks at the time were struggling to meet their obligations to depositors. Should they have been given more time thus inflicting serious financial harm on depositors? The truth is many bank assets are illiquid and thus cannot be sold off quickly to meet the demands of depositors without a substantial loss to the bank. In addition, also note the contagion effect of a bank failure on the macroeconomy as banks move assets among themselves. Should the CBN fold its arms and watch the situation degenerate into a financial crisis? Of course there are lessons to be learnt from the events in East Asia in the late 1990's.

I wonder what you mean by "a mans investment" when his capital has been eroded by a fall in the value of his assets. Even at that the shareholders were still allowed to hold some shares in these banks albeit at a small value due to the dillution of their holdings by the bailout of the CBN. This is similar to the case of Northern Rock where compensation for shares was at 5p per share in 07/08 compared to the value at flotation which was at 5 pounds per share.

On staff going home empty handed, I don't know of any staff who was laid off without receiving his redundancy payments. So you could please explain better.

Should we have put more funds in these banks where corporate governance and internal controls are flawed? A bank which was insider dominated? Is there no moral hazard in doing this? How do we enhance Financial reporting? What is our level of compliance with the International Financial Reporting Standards (IFRS)? How do we ensure that listed entities disclose material items in annual reports? If a bank is in trouble, do we as creditors not deserve to know?

These are fundamental questions to be answered and the mediocre process by the house did not answer these questions. It was directed at persons rather than addressing the fundamental issues in the system.

mr ballabrigs, I ve been following your line of arguement on this issue and I suspect youre a member of accessbankplc or one of their paid media agents.
It is better to condemn illegality and desist from peddling false information about Ibplc. You may want to tell us at what point ibplc failled to honour depositors request for funds withdrawals, even when there was a "run" on the bank. I wonder what response you have to those times ibplc was opening accounts with zero balance and zero minimum balance.
Going by the circumstances surrounding the activities of CBN intervention on rescued banks since SLS took over, I dare you to proof me wrong that G8 were not victims of cabals decision on the banking industry while sls was chosen to implement their plans.
I agreed that the banks had some issues but I tell you ALL banks in this country are guilty of the offence they were nailled for. Even the badloans created by sls in firstbank was hurriedly managed to safe his face.
Now let's assume that the intervention was in good faith to safe our banking sector, is it proper to sell ibplc to accessbank when a sub of access owned ibplc 14billion debt. How come access became the prefer buyer.

jammer777:

Abegiii, spare us ur history lessons and all ur quoted financial technicalities. We all knew dat d banks were going under and needed a drastic solution to keep them afloat but not expecting the tribal/religious and fraudulent ways SLS dealt with the banks. Can u explain the situation of IBPLC merger with Access? If u can convince the house that it was duely and legally passed on, then i can listen to u.

Lol, argue with the dude called ballabriggs, and you're wasting your time. The dude has lost credibility, he has claimed all sort of position to suit his argument. From Risk expert to expert economist with different certifications to trained financial professional, and the list is endless.

I wouldn't even waste my precious time on him...

Adeniyi A.:
if u ar a nigerian n u're not corrupt say 'aye' (ai)

aye. me no dey o

ikooko:
mr ballabrigs, I ve been following your line of arguement on this issue and I suspect youre a member of accessbankplc or one of their paid media agents.
It is better to condemn illegality and desist from peddling false information about Ibplc. You may want to tell us at what point ibplc failled to honour depositors request for funds withdrawals, even when there was a "run" on the bank. I wonder what response you have to those times ibplc was opening accounts with zero balance and zero minimum balance.
Going by the circumstances surrounding the activities of CBN intervention on rescued banks since SLS took over, I dare you to proof me wrong that G8 were not victims of cabals decision on the banking industry while sls was chosen to implement their plans.
I agreed that the banks had some issues but I tell you ALL banks in this country are guilty of the offence they were nailled for. Even the badloans created by sls in firstbank was hurriedly managed to safe his face.
Now let's assume that the intervention was in good faith to safe our banking sector, is it proper to sell ibplc to accessbank when a sub of access owned ibplc 14billion debt. How come access became the prefer buyer.

Thanks my bro. Can mr. Ballabrigs explain a may 5, 2009 vanguard publication detailing these plots 2 sack soludo, employ a northerner that wil hijack som banks, arest and demonise their board members and all what we are seeing now. More worrisome is d fact dat every step of d action was predicted wit precision and 3 whole months aforehand. While d nations and institutions balabrig mentioned adopted theirs as a strategy, Our brand of nationalisation was an after thought, plain simple! The original plan was a-bull-in-a-china-shop like hijack, which was failing due to share holders' resistances and litigations. Lets call a spade by its name, the whole charade called banking reforms a la SLS is a fraud. It was vendata driven and sectionally motivated. Comparing them is akin 2 comparing water-yam 2 cocoyam, because both end wit yam.

dougivilla: Thanks my bro. Can mr. Ballabrigs explain a may 5, 2009 vanguard publication detailing these plots 2 sack soludo, employ a northerner that wil hijack som banks, arest and demonise their board members and all what we are seeing now. More worrisome is d fact dat every step of d action was predicted wit precision and 3 whole months aforehand. While d nations and institutions balabrig mentioned adopted theirs as a strategy, Our brand of nationalisation was an after thought, plain simple! The original plan was a-bull-in-a-china-shop like hijack, which was failing due to share holders' resistances and litigations. Lets call a spade by its name, the whole charade called banking reforms a la SLS is a fraud. It was vendata driven and sectionally motivated. Comparing them is akin 2 comparing water-yam 2 cocoyam, because both end wit yam.

As a financial expert and ardent SLS supporter, Ballabriggs would do well to tell us d short, medium and long term plans, projections and gains of this model of reform. If for nothing else, soludo had a time table that was religiously followed. What or where is Sanusi's? Even when he himself set a deadline 4 nationalisation, what now happened? What is d exit strategy of CBN 4rm d comercial banks, 3 good yrs on and stil counting? The interim management single handedly apointed by SLS that failed in managing d banks, (amids unfathomable allegations of coruptions) which led to their nationalisation, what has hapened 2 them? Where r d so called recovered loots and recovered loans? As an insider i can tell u that after 3 yrs of reforms precipitated deforms, no Nigerian bank is truely better and there seems no hope in sight so long as SLS remains in d saddle!

manny4life:

Lol, argue with the dude called ballabriggs, and you're wasting your time. The dude has lost credibility, he has claimed all sort of position to suit his argument. From Risk expert to expert economist with different certifications to trained financial professional, and the list is endless.

I wouldn't even waste my precious time
on him...

The fraudster has ran from the thread, he thinks we are fools that can be brainshed with big english, id10t. No make me vex oooo, else i'll rain ayajo on ur post-lineage. Thanks Manny, hw wkend nah?

I wont be suprise if both Gideon n Obi turn out to be PDP frontiers. As for Sanusi, i tho't he was different.

interesting

Haha look at these ones, I won't spend all day posting on Nairaland, I also have a job.

Firstly, to say that IBPLC was not struggling to meet its obligations to depositors at the time is absolutely false. IBPLC at the time was consistently seeking credit from the inter bank market to maintain its liquid position. I've also stated its raising of its minimum balance by over 500% without notice to depositors. This points to a bank having liquidity issues.

Secondly, there is no bank in this world where there are no bad loans. However, the issue is that of exposure to risk. To what extent are you exposed to liqudity risk?

The CBN like every other Central Bank places a limit on the amount of investment as a bank you put in common stocks because of the risky and volatile nature of stocks. However this was flouted by these banks in the quest to make short term gains.

What went wrong? On consolidation and Nigeria accumulating a large foreign exchange reserve and the internalisation of Nigerian Banks, Nigeria became attractive for foreign banks and international institutional investors to move their portfolios. Having accummulated a large inflow of capital, the banks did not know what to do with these. In fairness to these banks, the economic climate was not there to finance real value added investments. The absorptive capacity of the economy was not there. The risk level in the economy was just too high for real value added long term finance. Some of the banks thus in violation of Central Bank rules had 'special purpose entities', moved assets among these entities in order to enable them move more and more of their portfolios into common stocks which seemed the easiest and the less risky market for quick returns. The markets began to boom, stocks prices began to rise speculatively, assets bubbles were created. The thing about asset bubbles is that so long as funds are continually being pushed into the market, the market would continue to boom, everyone would get income above what they should get, consumption would rise. However, as soon as funds stop coming in then you see all was a money illusion. This is probably how the boom ceased in the Nigerian markets.

As a result of the global financial crisis, investors had to recall their funds. Most banks around the world had to put their balance sheets together. It was time to recall investments which were held in different parts of the world back to their source countries. In addition, in the heat of the Niger Delta crisis, the subsequent drop in crude production and also with falling crude oil prices, it became obvious that Nigeria was fast loosing reserves and was becoming less safe a destination to hold portfolios. It was thus time for these investors to call back their funds.

To say Lamido Sanusi caused them to pull their funds back is the biggest insult to these investors who spend a large amount of their resources on risk and risk management. Investors are smarter than that, they see potential problems before they eventually materialise, they are not lotto players. Also, it is unethical and satanic to manipulate financial reports in a bid to deceive investors. It is not giving them confidence but rather a theft of their wealth. Disclosure is key in corporate governance. Non-disclosure is what actually kills the confidence of investors.

Like I said, most banks lost in this market. however, the issue is that of exposure to risk. To what extent are you exposed to liqudity risk? There is no bank in the world that does not have bad loans. What we are concerned with is to what extent has this affected your liquid position. If it does then a take-over is necessary by the CBN.

Thirdly, on the merger between Intercontinental and Access. For a process as technical as an M&A, it is the most ridiculous thing to conclude on who benefitted by looking at that your chat. If Access paid 50 billion naira to acquire IBPLC, do you know what other considerations were put in the deal, do you know the extent of the liabilities it took over. Even in the most prominent cases of M&A, scholars are still divided as to who benefitted from these deals. As an example is the case of JP Morgan Chase which is still subject to research and debates as to which of the groups benefitted most or did the merger yield the synergy anticipated. What if AMCON contributed more, does it hold equity in the bank? Did it purchase debts? No reference to the Statement of Financial Position of both groups?

On Access' subsidiary being indebted. I don't know of any subsidiary of Access mentioned. Maybe you would do well to explain what a subsidiary means and also prove that the said firm is a subsidiary of Access.

Fourthly, on reforms coming to an end. This is one of the reasons why we got ourselves into this mess. Reforms never come to an end. The Financial and Monetary system moves at a very fast pace and as such, we must continue to modify and adapt legislations, regulations and codes to meet these changes in the environment.

On when the nationalisation would come to an end. Till we get the system stable. RBS is still owned by the british government since 2008. Governments in the euro zone are taking over banks today. For example in Spain and Greece.

Finally, you should be ashamed that you spend so much on these legislators to give you poo. Considering the amount of money these guys take home annually, this so called probe is mediocre. The key issue in the system were not addressed but rather personalities was the main focus of the so called probe. The legislators indicted all but themselves in the probe. By not being responsible when it mattered most, they contributed to the failure of these markets.