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Failed Bank Shareholders To Drag Regulatory Authorities To Court

Posted by By Godfrey Okpugie on 2006/01/29 | Views: 363 |

Failed Bank Shareholders To Drag Regulatory Authorities To Court


PUSHED by the agony which bank distress have inflicted on investors and depositors, some investors in the recently liquidated banks which failed to meet the 25 billion capital base stipulated by the Central Bank of Nigeria (CBN), are gearing up to drag Nigerian investment market regulatory organisations to the law court.

PUSHED by the agony which bank distress have inflicted on investors and depositors, some investors in the recently liquidated banks which failed to meet the 25 billion capital base stipulated by the Central Bank of Nigeria (CBN), are gearing up to drag Nigerian investment market regulatory organisations to the law court.

The investors would likely sue for betrayal of public trust and conspiracy with management of banks to defraud innocent members of the investing public.

The stakeholders, under the umbrella of Nigerian Shareholders Solidarity Association (NSSA), lamented that those whose responsibility it is to sanction banks which are not doing fine often turn around to give official backing to the same banks to defraud the public by persuading people to give money to the banks.

The President of the association, Chief Akintunde Asalu, in an exclusive interview with The Guardian last week in Lagos, said the NSSA was contemplating the litigation to make markets regulatory authorities in Nigeria wake up to their statutory responsibilities.

"Before the recent bank consolidation started, the Governor of the CBN did say that if he did not come up with a decision to increase the capital base of banks, the 11 banks were already terminally ill and if the banks had been allowed to go under, they would have such a serious effect on other banks.

"That CBN revelation raises a lot of questions. Is it possible that in a society like ours an insolvent bank would continue to limp on without the authorities saying, 'Look, stop business'? I think it is not right. In fact, it is not fair.

"Funny enough some of these banks were also given clearance by the same banking and capital market regulators to come and raise funds from the innocent members of investing public."

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.