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Chase Bank loss...another case of cooking the books?
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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littledove wrote:Liv wrote:alma1 wrote:
In fact, this rumors started with innuendos from some guys in the green section trying to second guess what the CBK governor was going to talk about yesterday.
On being asked a direct question, he said, "those are social media rumors"
Forgive me for trusting my beloved Central Bank Governor more than I trust the hate monger Impunity and the Waiguru cry baby Much Know.
So up until yesterday afternoon, with all the information on wazua plus more information that is not privy to us, the CBK Governor said there was no cause for concern.
But you were all on twitter, you saw what was going on. All of a sudden the story was Chase Bank was going to be closed.
Students of economics shall tell you, if you have a run on a bank, it may not survive unless something drastic is done. Some branches were closing early because people came from everywhere to withdraw their cash.
According the the CBK which I take as a better source of information than Impunity and Much Know, they had to appoint a receiver simply because of the rumors on chocho media.
So get a grip.
Yes, the fake accounting was in the public domain for more than a week. But what brought the bank to its knees was the Chasebank hashtag that even my mother told me about.And yes, they should have handled it better and probably be working today.
Unless of course you are saying that the Governor of the Central Bank of Kenya is a liar. Which may be possible but honestly I believe Much Know to be the biggest liar ever on Wazua. Tafakari hayo.
Now for more matusi's lets meet kule green section.
Though the social media may have hastened the process of getting into receivership, I think it was inevitable.
1. Chase bank shareholders equity is circa Kes 11B while loans to directors and staff are Kes 13.5B.... Real shareholder equity is negative.
2. 8 directors have a loan from the bank of kes 10.5B....which is NPL.
3. CBK requires a maximum of 25% of capital as loans to directors and staff. chase bank has over 100%... Circa 115%.
4. Chase bank was allowed to issue a Kes 10B bond last year while they could have recovered this from their directors...NPLs
Professor Ndungu should be prosecuted.
a loan of more than a billion per director!!!! just shocking Quote:Chase Bank experienced liquidity difficulties following inaccurate social media reports and stepping aside of two directors, consequently it was not able to meet its financial obligations on April 6, 2016," CBK said in a press statement on Thursday. If Obiero did it, Who Am I?
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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mlennyma wrote:IMG-20160407-WA0001.jpg sorry,operation failed "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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The run on the bank was created by lack of trust in the bank and not social media. The bank published deiberately misleading FS to the public. If it was not for the auditors, they would have got away with it. When the public learnt of this, they went to withdraw thei money, the sensible thing to do. Rational people are not expected to trust liars with their money "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Obi 1 Kanobi wrote:The run on the bank was created by lack of trust in the bank and not social media. The bank published deiberately misleading FS to the public. If it was not for the auditors, they would have got away with it.
When the public learnt of this, they went to withdraw thei money, the sensible thing to do.
Rational people are not expected to trust liars with their money Very true... possunt quia posse videntur
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Rank: New-farer Joined: 1/14/2016 Posts: 12 Location: here and there
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Metasploit wrote:Sufficiently Philanga....thropic wrote:Sufficiently Philanga....thropic wrote:If this one goes the way of Imperial Bank, expect a proper shaving on Bank stocks at the NSE. CBK must follow kuroda and Yellen and shore up our NSE,particularly Bank stocks....otherwise as @hisah says....sit tight! CITI BANK 2012 REPORT ON FINANCIAL COOKING BY KENYAN BANKSLeft on the dancefloor after the music stopped.@Hisah raised concern on Kenya banks and liquidity issues long ago The Citi bank report was dismissed by Prof,The former CBK Bank and all the bank CEOs as shoddy.. But now the truth dawns.NOT GOOD FOR NSE AND ESP ON A BEAR MARKET What i always agree with Mnandi is that stock markets is directly proportional to social mood. Economic pessimism must be at the lowest ever level...Not with all the econ scandals and irresponsible institutions.Who will ever trust Q1,Q2,Q3 results. TECHNICALLY ANALYSIS IS ALWAYS ON POINT..VOLUME SPREAD SPEAKS VOLUME please can you copy and paste the contents of the link you provide.
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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littledove wrote:Liv wrote:alma1 wrote:
In fact, this rumors started with innuendos from some guys in the green section trying to second guess what the CBK governor was going to talk about yesterday.
On being asked a direct question, he said, "those are social media rumors"
Forgive me for trusting my beloved Central Bank Governor more than I trust the hate monger Impunity and the Waiguru cry baby Much Know.
So up until yesterday afternoon, with all the information on wazua plus more information that is not privy to us, the CBK Governor said there was no cause for concern.
But you were all on twitter, you saw what was going on. All of a sudden the story was Chase Bank was going to be closed.
Students of economics shall tell you, if you have a run on a bank, it may not survive unless something drastic is done. Some branches were closing early because people came from everywhere to withdraw their cash.
According the the CBK which I take as a better source of information than Impunity and Much Know, they had to appoint a receiver simply because of the rumors on chocho media.
So get a grip.
Yes, the fake accounting was in the public domain for more than a week. But what brought the bank to its knees was the Chasebank hashtag that even my mother told me about.And yes, they should have handled it better and probably be working today.
Unless of course you are saying that the Governor of the Central Bank of Kenya is a liar. Which may be possible but honestly I believe Much Know to be the biggest liar ever on Wazua. Tafakari hayo.
Now for more matusi's lets meet kule green section.
Though the social media may have hastened the process of getting into receivership, I think it was inevitable.
1. Chase bank shareholders equity is circa Kes 11B while loans to directors and staff are Kes 13.5B.... Real shareholder equity is negative.
2. 8 directors have a loan from the bank of kes 10.5B....which is NPL.
3. CBK requires a maximum of 25% of capital as loans to directors and staff. chase bank has over 100%... Circa 115%.
4. Chase bank was allowed to issue a Kes 10B bond last year while they could have recovered this from their directors...NPLs
Professor Ndungu should be prosecuted.
a loan of more than a billion per director!!!! just shocking A banking revolution has begun in Kenya. Archive this thread for posterity. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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After analyzing NPL and NPL provisions,these are the safest places to bank right now:
1.Under your mattress
2.I&M bank
3.DTB
4.Stanchart bank.
I feel sorry for bondholders who will get nothing and guys who had more than 1M in the account.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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whiteowl wrote:After analyzing NPL and NPL provisions,these are the safest places to bank right now:
1.Under your mattress
2.I&M bank
3.DTB
4.Stanchart bank.
I feel sorry for bondholders who will get nothing and guys who had more than 1M in the account. Thought bond holders will be paid after depositers? possunt quia posse videntur
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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And this is what he has to say Which means that all that was said here on wazua and elsewhere was known to them and they were dealing with it. Then the rumor mongers came in So forgive me for believing the person who everyone here is calling a hero on the exact reasons why Chase Bank is in receivership. They knew they had a problem. They were figuring out how to deal with it. Then some paid hacks on social media went on overdrive and everyone went to the bank to collect their money. If that happened at Equity, they too would be under receivership within minutes. Chasebank has a chance to survive according to your hero. Ni hayo tu. Thieves are not good people. Tumeelewana?
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Liv wrote:alma1 wrote:
In fact, this rumors started with innuendos from some guys in the green section trying to second guess what the CBK governor was going to talk about yesterday.
On being asked a direct question, he said, "those are social media rumors"
Forgive me for trusting my beloved Central Bank Governor more than I trust the hate monger Impunity and the Waiguru cry baby Much Know.
So up until yesterday afternoon, with all the information on wazua plus more information that is not privy to us, the CBK Governor said there was no cause for concern.
But you were all on twitter, you saw what was going on. All of a sudden the story was Chase Bank was going to be closed.
Students of economics shall tell you, if you have a run on a bank, it may not survive unless something drastic is done. Some branches were closing early because people came from everywhere to withdraw their cash.
According the the CBK which I take as a better source of information than Impunity and Much Know, they had to appoint a receiver simply because of the rumors on chocho media.
So get a grip.
Yes, the fake accounting was in the public domain for more than a week. But what brought the bank to its knees was the Chasebank hashtag that even my mother told me about.And yes, they should have handled it better and probably be working today.
Unless of course you are saying that the Governor of the Central Bank of Kenya is a liar. Which may be possible but honestly I believe Much Know to be the biggest liar ever on Wazua. Tafakari hayo.
Now for more matusi's lets meet kule green section.
Though the social media may have hastened the process of getting into receivership, I think it was inevitable.
1. Chase bank shareholders equity is circa Kes 11B while loans to directors and staff are Kes 13.5B.... Real shareholder equity is negative.
2. 8 directors have a loan from the bank of kes 10.5B....which is NPL.
3. CBK requires a maximum of 25% of capital as loans to directors and staff. chase bank has over 100%... Circa 115%.
4. Chase bank was allowed to issue a Kes 10B bond last year while they could have recovered this from their directors...NPLs
Professor Ndungu should be prosecuted.
Very bad. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Chase Bank loss...another case of cooking the books?
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