Garrick Posted August 10, 2014 Report Share Posted August 10, 2014 http://www.fin24.com/Companies/Financial-Services/African-Bank-placed-under-curatorship-20140810If I were still in SA, I would be concerned with the SARB's approach to 'fixing' this. Not a cent should be spent of tax payers money until the entire board was fired and replaced and an audit performed - surely they should have had annual audits?I expect that any clever people (and business owners) that would be moved into the 'good bank' would have common sense enough to get out of dodge and move to another bank. Retail depositors represent less than 1% of Abil’s creditors.This makes little difference to the people that are disciplined enough to have put their savings into a bank. I mean, 100% of someone's savings, may be insignificant in terms of overall picture when compared to a company putting in 5% of their business that may be 10000 times more... but it's still everything that person has.I would like to know what the numbers are around DEBTORS... who and/or which companies caused this, and then an audit of ABL as to how they were granted loans/credit.-G Quote Link to comment Share on other sites More sharing options...
Bronwyn&Co Posted August 11, 2014 Report Share Posted August 11, 2014 "Sarb will purchase a substantial portion of the non- and under-performing assets and other high risk loans from Abil in order to separate them from the good bank," said Marcus.'Now, what could possibly go wrong with purchasing an insolvent book with taxpayer's money, Gill? ? 1 Quote Link to comment Share on other sites More sharing options...
DeepFriedMatt Posted August 11, 2014 Report Share Posted August 11, 2014 @GarrickABIL has been subject to annual statutory audits (as required by the Companies Act) which were performed by Deloitte. It's interesting that the audit opinions never made mention of any concerns over the health of the company or constraints on it's ability to raise further funding. @Bronwyn&CoThere's not much choice for a rescue plan other than to distinguish between a bad bank and good bank. Obviously the bad bank would not be attractive to any other market players so it makes sense that the regulator would need to administer the bad book. And then the hope is that the good book would be appealing enough for another market player to acquire and subsume into their operations. The idea of using taxpayers money to acquire the bad book is definitely not appealing to the average South African. But it doesn't really compare to some of the bailouts that have occurred in the US and EU Quote Link to comment Share on other sites More sharing options...
SurferMan Posted August 12, 2014 Report Share Posted August 12, 2014 There were concerns but they were quietly brushed over due to the political :sensitivities" involved wrt to the debtor book base. "Saamvou" largely old school people, whereas the ABIL base is part of the new regime. It is therefore unpalatable to admit failure, the same as farm handovers that tank over 93%. (I did work at Land Affairs and know the real numbers, almost a 100% failre rate) Of course its the previous farmers fault, Governments fault, the neighbours, weather, ancestors, etc et al. But never the guy who stuck his hand in the air to claim the farm in the first place. African entitlement and misdirection, truly an art form with these fearless leaders.Why didnt Government bail:FidentiaKrionPICCOSATU fundsSASSAThe poor sods whose life investments are tied up. No help for the people of Saambou. How it saddens me. 2 Quote Link to comment Share on other sites More sharing options...
Bronwyn&Co Posted August 12, 2014 Report Share Posted August 12, 2014 It's the words 'purchase' and 'non-performing' in the same sentence...? 1 Quote Link to comment Share on other sites More sharing options...
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