Sawa Mukiha.

@ Mainat,cheers for the PDF on Equity i have skimmed a quickie n its looks like a good read.

@ Mukiha the facts you bring out are very enlightening. am sure many guys here are shareholders and customers and no one would like to lose their money.

@ TB congratulations on choosing not to become a kikuyu or kaleo before u were born but u made the wise choice of becoming watever tribe u r. Those who chose to be these tribes am sure are damn in ur eyes...shame on them!! n thanks for warning us albeit without facts

IF YOU EVER LOSE,MAKE SURE YOU NEVER LOSE THE LESSON!!

@Tony Stark:

Here are some excerpts from 'Understanding the Re-birth of Equity Building Society in Kenya',by Gerhard Coetzee,Kamau Kabbucho & Andrew Mnjama,on behalf of Microsave [2002]:

==========

'When we asked Equity stakeholders to identify the key factors that have led to the success of the institution,.....both management and staff trace the start of the turnaround to the self-awareness and management skills training provided by the two consultants,James Mwangi and Nancy Nyambici,in 1993/94.'

=========

'The CBK rating report of December 1993 stated that Equity was technically insolvent.....The CBK did not request the closure of Equity as the Central Bank was merely the inspection function,and only the Registrar of Building Societies had the power to close the institution. It was argued that since there were no complaints from clients,Equity should be given the chance to turn around.'

===========

'During the Board meeting called to discuss the CBK inspection report in April 1992,the three directors developed an action plan that included injection of capital.....James Mwangi,through his contacts with the CEO,deposited Ksh 3,4 million with Equity and an additional Ksh 4 million from his associates,which saved the building society from eminent collapse due to cash flow problems.'

==========

So now we know that JM put in sh4m and not the sh200m brandished around here! And,oh yes he was senior Finance Manager at Trade Bank; not a Director...perhaps now we should ask where he got the sh4m from......

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

sahau sahau

@MAINAH
There is a difference between collapsing and reduced profitability.

The factors you have highlighted will result in reduced profitability,but not a collapse of the bank.

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

I want to pose a question. During Moi's regime,why did banks collapse? Was CBK sent to harass banks owned by individuals by the high and mighty of those years? I remember banks belonging to a certain community all being shut down despite proof of liquidity. If anything NBK and KCB should have shut down were it not for intervention by the government.

Trade bank had given a loan for the development of Yaya centre. They threatened to sell it. That was their end. How does any employee of the then Trade Bank come into question under such circumstances? Good banks were closed,bad banks survived and foriegn banks were free to operate after advancing a lot of money to the power barons.

Let us stop the habit of bad mouthing people because of where they come from.


Fundamentals + Sentiments = Position

Hhhm!!

And what are we to conclude about the usual SCOM system break-down on Friday afternoons? Hakuna hewa?

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

So we've had this Equity discussion going a long time. It's time for people to put money on the table.

Let's come up with a derivative product - composed of shorts and longs.

1. If you think EB will have collapsed in the next 5years - you put in a 5 year short
That way if TB is right that the bank is collapsing he will benefit from the 'over optimistic but misguided people' who are emotionally/sentimentally attached to the bank.

2. If you think EB will be the wonder in the next 5 years - you put in a 5 year long - It means that you short the shares to the doubters and they have to give you back those same shares after the 5 year period has elapsed. And make money off the doubter.

For example a 'believer' owns Kshs 10,000 worth of shares in EB (approximate at 10 bob a share means 1000 shares). He shorts the shares to the 'doubter' who takes the shares sells them and promises to return the 1000 shares in 5 years depending on the value of 1 share at that time.

If EB goes to Kshs 0 by that time,the value of the shares will be zero i.e. the doubter will not need to return the money.
If EB goes to Kshs 500 by that time,the value of the shares will be 500k. So now the doubter will be obligated to find a way to repay.

In this way we can settle this EB debate fairly and transparently.

Obviously we would need security to assure repayment.

Funny,the subject matter has changed. So far,no iota of proof on JM's perceived 200m steal apart from matope distributors. You see,money is like a river. It has a source and a destinationa and its not easy to hide either. just look at Goldenberg,Anglo-Leasing and the numerous Nigerian corruption cases...

Any bank can collapse. Easily.

Mv-we don't need the NSE to do this. Its easy to get a lawyer to draw up the contracts.

So who else will put their money where their mouths are?



www.mjengakenya.blogspot.com

tb-Haven't you followed the thread? There is an offer for whoever has this proof to fwd or even post here because is very easy to take the case to a court outside Kenya. The most embrassing/boring thing about your allegatiosn is that you've not made any effort to back them up with any tangible evidence... apart from bar-talk.

I stand to be corrected,but I believe the ATM issues have been resolved...

On the derivatives-easy excuse.



www.mjengakenya.blogspot.com