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Chase Bank loss...another case of cooking the books?
Rank: Elder Joined: 6/23/2009 Posts: 14,288 Location: nairobi
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murchr wrote:gk wrote:Run, run, run..... Not every other massive withdrawal will cause a bank to collapse. Equity did not lose much relative to its total deposit base n its was not a one day drainage. Even last yr after Imperial's fall most smaller lenders had a run but survived just as Chase would have remained afloat had they managed to plug the huge n sudden hole by the following morning.
So long as you can honour your settlemnts at CBK,,, there is a lifeline.
Methinks Chase had some few heavy depositors who jumped ship on the day.... coz they could have survived a run by retail depositors. Sports Pesa Seconded.. That movement caused the collapse COOP, IMH, KEGN, KQ, MTNU
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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So if those tweets are anything to go by, it means these published financial statements are just paper exercises and nobody really looks at them? What does nsisi & cbk do? And now that we're here, can someone re-check and explain like a 2 yr old how even tier 1 banks have been declaring double digit growths year in year out when economy is growing sub 5%?
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Rank: Member Joined: 3/23/2011 Posts: 503
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limanika wrote:So if those tweets are anything to go by, it means these published financial statements are just paper exercises and nobody really looks at them? What does nsisi & cbk do? And now that we're here, can someone re-check and explain like a 2 yr old how even tier 1 banks have been declaring double digit growths year in year out when economy is growing sub 5%? Yes. Creative. Its like dating online. And yes, i write from a point of knowledge. Even a BrOKeN clock is right twice a day
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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A solution has been found... possunt quia posse videntur
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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limanika wrote:So if those tweets are anything to go by, it means these published financial statements are just paper exercises and nobody really looks at them? What does nsisi & cbk do? And now that we're here, can someone re-check and explain like a 2 yr old how even tier 1 banks have been declaring double digit growths year in year out when economy is growing sub 5%? They do declare double digits growth annually by understating provision for bad debts . IMF warned them last year. If provision for bad debts, bad debts and NPLs were looked into properly, growth rate in the banking industry will hinge on single digit in tandem to economic growth. Opus Dei will continue implementing policies till normalcy is restored in the financial sector. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Rollins wrote:limanika wrote:So if those tweets are anything to go by, it means these published financial statements are just paper exercises and nobody really looks at them? What does nsisi & cbk do? And now that we're here, can someone re-check and explain like a 2 yr old how even tier 1 banks have been declaring double digit growths year in year out when economy is growing sub 5%? Yes. Creative. Its like dating online. And yes, i write from a point of knowledge. So if I could ask hypothetically - a player that could have cheated their way online the last 5-10 years, what will it take to correct? Report flat growth for next few yrs?
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Spikes wrote:limanika wrote:So if those tweets are anything to go by, it means these published financial statements are just paper exercises and nobody really looks at them? What does nsisi & cbk do? And now that we're here, can someone re-check and explain like a 2 yr old how even tier 1 banks have been declaring double digit growths year in year out when economy is growing sub 5%? They do declare double digits growth annually by understating provision for bad debts . IMF warned them last year. If provision for bad debts, bad debts and NPLs were looked into properly, growth rate in the banking industry will hinge on single digit in tandem to economic growth. Opus Dei will continue implementing policies till normalcy is restored in the financial sector. By the way, I started smelling a big fat rat those days when member started doubling profits ever year. But the rat was not in member, but other players that had to 'increase speed' so member doesn't catch up, or to keep pace. It's been a roller coster ever since but reality slowly creeping in...
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Chase Bank was an internal coup that went wrong. http://www.nation.co.ke/...18/-/9tl34d/-/index.htmlLife is short. Live passionately.
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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[quote=sparkly]Chase Bank was an internal coup that went wrong. http://www.nation.co.ke/...8/-/9tl34d/-/index.html[/quote] Why would anyone do a coup for such difficult job? Unless intentions weren't good either?
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Rank: Elder Joined: 7/22/2009 Posts: 7,893
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gk wrote:Much Know wrote:Just to correct this bullshit idea being sold here that "no bank can withstand a run", hio ni ujinga ya 19th century. A modern bank should be able to withstand run, and often carries out tests on it's own called "stress tests", these are simple tests that can be carried out by any serious banker and central bank (it is apparently what they are doing now). Those who were keen during the 2008 financial crisis will remember banks like JP Morgan emphasizing they are ready for a run. There are credit risk analysis, liquidity analysis etc to ensure in any case you can quickly convert some assets to cover "mass withdrawas", lakini kama umeweka pesa Panama ama in speculatory burotis and apartments in Nairobi shauri yako. THERE IS NO WAY ON EARTH social media can bring down a bank! CBK governor ongeza stress!!!! I will take that as a joke! I am also hoping it is a joke. Social media has brought down governments as we watched and this fellow is saying it cannot bring down a bank??? Seriously??? Those who were not born in 2010 need to read about the Arab Spring to see the power of Social Media. They also need to talk to Obama and ask him how he raised record breaking campaign funds and won his first election against all odds and the will know the power of Social Media. In the Chase story, the directors and management created the mess, social media caused the run, the run made meeting obligations impossible, inability to meet obligations necessitated the receivership!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Chase Bank loss...another case of cooking the books?
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