Caption: Nation Newspaper advert lying about Chase Bank's solid financial standing, which ran on the day the bank went under receivership. Would anyone trust Nation Media Group again? Mainstream media are a bunch of lying scumbags .
According to CBK statement "Chase Bank Limited experienced liquidity difficulties, following inaccurate social media reports and the stepping aside of two of its directors. Consequently, it was not able to meet its financial obligations on April 6, 2016."
CBK needs to get serious and realise that this is the era of social media. There is nothing really inaccurate that social media released. Infact Chase Bank used social media to announce the resignation of their Chairman and Group Managing Director.
The bank is mandated by law to release its annual financial statements through the mainstream media/newspapers. The bank released accounts which were qualified by the auditors. Qualified financial statements is not a small matter for bank.
If you were a depositor in the bank and you receive all the above information through social media or mainstream media can someone blame you for acting on the information? In fact social media should be praised for ensuring information is communicated quickly. CBK is not a regulator of social media. The best it can do is to up its game and communicate effectively to avoid panic decisions by depositors.
It is now clear that there are systemic issues in the sector which must be dealt with urgently. KBA and CBK should hold a joint press conference and reassure the markets. They should also give a clear way forward on how the issues will be addressed comprehensively. In the meantime our fears are for whom the bell tolls next. What we did was advise depositors to withdraw funds because we no longer trust official statements and mainstream media. If the bank was so solid, why couldn't it meet its financial obligations? Stop diverting people's attention. You simply wanted to keep the bank afloat and use taxpayers money to bail it out. We cannot allow that to happen as it did with Kenya Airways, Mumias Sugar and the likes.
Central Bank has a fiduciary duty to defend the interests of depositors, meaning they should recover the money by arresting directors of Chase Bank and TransCentury, lock them up, and attach caveats on all their properties and investments. We will not tolerat Government bail-outs again.
Kenya Bankers Association Chairman Habil Olaka who was bribed by Statehouse to do cleansing for the Eurobond Heist can go shove a maize-cob in his back-side, because Kenyans are now tired of your bullshit. We are tired of mainstream media sleeping with corporates.
Will you ever trust for instance Nation Media Group who today ran a full-page advert explaining Chase Bank's solid standing, only for the bank to be closed down? Will you ever trust fake accounts like @SokoAnalyst who tweets nothing but garbage at the behest of the corporates he bootlicks?
Kenyans are tired of these cartels. Tumechoka! Change your ways or sink into oblivion. Social media is here to stay. Play by the book, and do things right.
Chase Bank has 1,359 Employees. Employee Loans are at 2.63B. This means on average each employee has loan of 1.9m. Chase Bank has 8 Directors with a director loan portfolio of 10.5B. So each director has a loan of 1.35B? Compare Chase Bank loans to directors of 10.5B vs. Kenya’s most profitable bank – KCB that gave directors only 592M. Chase Bank borrowed 26B and gave out loans worth 13B to Directors and Staff. Basically, 50% of all cash borrowed! CBK regulations: banks can loan out 25% of Core Capital to staff and directors. Chase Core Capital is 11B. Internal loans at 13B i.e Chase Bank issued 118% of Core Capital to Directors + Staff as loans. Where does social-media come in here bwana CBK Governor? Wacha ujinga, nonsense!