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Chase Bank loss...another case of cooking the books?
Rank: User Joined: 8/15/2013 Posts: 13,236 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: 6,177 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: 26,325 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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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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alma1 wrote: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. Now watch Rafiki.
Ni hayo tu. @Alma1 this thing did not start yesterday surely...yesterday just compounded matters. possunt quia posse videntur
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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maka wrote: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? Yes but will there be cash left after depositors are paid? Going by the Imperial bank case
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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kollabo wrote:mlennyma wrote:This shows the rot in the previous cbk' governors tenure when a competent dude takes charge Bitter pill of tribalism and political patronage. Banking revolution is now! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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@maka That's the CBK governor I'm quoting not much know. He has stated that the issues did not start yesterday. In fact they started in October. But he has stated clearly that they were resolving the issue with shareholders and investors. It's very clear isn't it? But the problem came yesterday. That's him saying it, not me. From the social media hacks. Now unless you are calling the Governor a liar, I don't know where alma is coming in. So you have two options. Believe what the CBK governor is saying is true. I tend to believe him...Or don't believe him. So that when he says that the banking sector is going to do well, you go to your current bank and take out your money. Right now! Thieves are not good people. Tumeelewana?
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Impunity wrote:wa P wrote:alma1 wrote:maka wrote:alotoftalk wrote:alma1 wrote:This bank was brought down by chocho media harlots eg Nyakundi.
When will Kenyan companies learn that they need reputation managers online to deal with such rumors. Not the usual PR companies or social media companies. Hardcore reputation managers who can as Impunity said "send sperm" to competitors?
Very sad indeed. Not only PR but also a blackhat who can hack such bloggers before things get out of hand. There is a bigger issue in this matter... Maka call me paranoid but I think this bank was going to survive. It's not the first time that a board has resigned because of poor results. It's supposed to happen that way. It's not the first time that loses have been made. This bank just went topsy turvy when chocho media rumors went on overdrive. Some of the posts were simply "I have withdrawn my money from the bank" I don't care which bank you are, if you don't nip such upus quickly, you shall not meet your liquidity ratio in the evening. Unless you are saying there's a guy who's going to court soon for robing the depositors. If your business attracts flies, it stinks. Do not blame the flies (social media). How can you ignorantly refuse to compare: 1. their Q3 results 2. Full 2015 Results 3. The restated position yesterday. Social media did not make deloitte give them a 'qualified opinion' (although, i will believe that when i see it) Social media did not make Kabue and Khan guy to resign. There are couple other banks that will not pass smell test still. I think its not over until a bigger bank (tier 1) has danced. And this could be #member!  FACT: When Imperial bank was put under receivership, some banks had cash run from their customers. However some like Member and Lion had new accounts and funds into Billion shillings moved there within a month. I understand even SCB stopped accepting FDs for a while.
You can expect the same to happen again in April..... Member and Lion will be the biggest beneficiaries of what is happening in the banking sector.
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Rank: Member Joined: 7/1/2014 Posts: 897 Location: sky
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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. Oct 2015 Chase Bank raised Ksh 10 Billion from the Bond Market Oversubscribed by 161% investor confidence melting fast, it will be hard to raise funds going foward imperial bank bond holders,transcencury bond holders, home africa bondholders and now chase bank bond holders and soon it will trickle down to share holders at nse There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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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. what about time for more? If Obiero did it, Who Am I?
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Obi 1 Kanobi wrote:
Very true @Liv.
Blaming access to information for the fall of Chase Bank is akin to shooting the messenger coz you don't like the message.
But Alma has a point. If we start shouting 'Inaanguka' at every issue that comes up we'll end up with many collapsed banks and possibly a depressed financial sector and slower econ growth Then the big boys of this sector will take over and take us back to the impunity of the 90s and before! Sad for all!!
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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waaaah Quote:Users browsing this topic
alma1, deadpoet, Forester, Guest (60), Impunity, innairobi, jano, Karisblue, littledove, Liv, lochaz-index, Lolest!, Mkenya_2000, mlennyma, ngapat, Swenani, wal6807, whiteowl shareholders wa chase bank If Obiero did it, Who Am I?
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Rank: Elder Joined: 7/21/2010 Posts: 6,177 Location: nairobi
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Swenani wrote: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. what about time for more? you can't ignore, kcb by any means "Don't let the fear of losing be greater than the excitement of winning."
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