August 28, 2009

A senior friend of mine described what began in the banking industry two Fridays ago as a Tsunami, and he is right. Removing in a fell swoop five Managing Directors and the entire Board of Directors of five banks in a thoroughly depressed economy such as ours could not have been anything else.

As in all earthquakes, there are aftershocks to the removal of the bank directors. All of a sudden the EFCC seems to have woken up (whether on the right or wrong side is another matter altogether); it has issued unheard of ultimatums for debtors to pay up or get arrested and prosecuted.Indeed the Commission has arrested scores of directors and officials of the troubled banks and their subsidiaries.