Discover and read the best of Twitter Threads about #Skyebank
Most recents (3)
This was caused mainly by impairment of loans to the tune of N529billion and transactions in suspense to the tune of N280 billion, (relating to BS and P/L manipulations from 2006 to 2016 and direct fraudulent cash withdrawals by known individuals). #Skyebank
- Evidence of inappropriate financial reporting. The Forensic Audit revealed that the Bank operated 2 sets of books and this was responsible for the regulators/auditors inability to detect d massive losses & infractions, particularly the balance of N280b in suspense a/c #Skyebank
- Unsustainable high cost to income ratio. #SkyeBank was significantly oversized in terms of branches and personnel compared to industry standards and was incurring huge expenditure in keeping its size. This compounded the bank's negative capital position.
Next, It obtained a bridge financing of N100 billion from 4 banks. The bridge financing was reportedly backed by MBL AMCON Bonds that were due for redemption shortly after the closing of the transaction. Stay with me because this is where it gets interesting. #Skyebank
According to Section 159 (1) & (2) of CAMA
(1) Financial assistance includes a gift, guarantee, security or indemnity, loan, any form of credit & financial assistance given by a coy, net assets of which are thereby reduced to a material extent or which has no net assets #Skyebank
(1) Financial assistance includes a gift, guarantee, security or indemnity, loan, any form of credit & financial assistance given by a coy, net assets of which are thereby reduced to a material extent or which has no net assets #Skyebank
(2a)where a person is acquiring or is proposing to acquire shares in a company, it shall not be lawful for d company or any of its subsidiaries to give financial assistance directly or indirectly for d purpose of that acquisition before or same time as the acquisition takes place
#SkyeBank - The Rise, The Fall, The Bridge
To understand what happened on the 21/09/18, you need to go back to the beginning. I'll like to categorize it under 3 headings.
1. Before The Acquisition of MBL
2. During the Acquisition of MBL
3. After the acquisition of MBL
A THREAD!
To understand what happened on the 21/09/18, you need to go back to the beginning. I'll like to categorize it under 3 headings.
1. Before The Acquisition of MBL
2. During the Acquisition of MBL
3. After the acquisition of MBL
A THREAD!
With the help of timelines and publicly available data, I'll try to answer these questions.
1. What led to the takeover?
2. What role did the CBN play leading up to the decision?
3. What role did insider related loans play to bring the bank down?
4. What's the end game?
#SkyeBank
1. What led to the takeover?
2. What role did the CBN play leading up to the decision?
3. What role did insider related loans play to bring the bank down?
4. What's the end game?
#SkyeBank
Questions 1 & 2 will be answered implicitly within the thread. While questions 3 & 4 will be answered directly. The resource for this thread came from publicly available materials available online from the CBN, NSE & other resource centers like @proshare & @Nairametrics #SkyeBank
