Global News: New York Stock Exchange says bizarre glitch that showed Berkshire Hathaway down 99.97% has been resolved
Heritage Bank's licence revoked- what happens to depositors, shareholders?
The New York Stock Exchange said on Monday that a technical issue that halted trading for some major stocks and caused Berkshire Hathaway to be down 99.97% has been resolved. In an update, NYSE said impacted stocks have reopened and “all systems are currently operational.
Our thoughts
Imagine buying off market Bugatti Chiron for $100k. Wild! The team at NYSE say it was a glitch and not a cyberattack and have reversed all the deals that went through at the "old market" price.
The funniest part of this whole event was the investors complaining about the reverse deals. Ole.
African News: Kenya to use World Bank loan to make $500 mln bond payment this month
Kenya plans to use part of a World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month, its central bank governor said on Thursday.
The East African country sold a $1.5 billion international bond in February at great cost to fund the buyback of a large portion of the $2 billion bond maturing in June.
Our thoughts
Kenya took money from World Bank to pay off their $2 billion Bond maturing this month. Our reactions and mixed on this😮. On one side, they will fulfill their obligations. On the other, do you mean they didn't have money to pay back? (shock). Lols!
We talked about it in January, Sub-Saharan Africa(SSA) Sovereign are one negative wind away from a default. High return has not stopped being a reward for high risk.
So how do we navigate it?
Some are closer to the cliff than others know where each country lies.
Relationships: Countries in the good books of the liquids can get a lifeline.
Prospects: some countries are positioning themselves for future growth. There is money to be made on a fresh line but thread carefully.
Nigerian News: Heritage Bank's license revoked- what happens to depositors, shareholders?
On June 3, the Central Bank of Nigeria (CBN) revoked the banking license of Heritage Bank Plc, raising curious questions about how depositors and shareholders would fare in terms of getting back their funds.
Our thoughts
Resurrected Société Générale that acquired Enterprise bank and had been hanging on a lifeline for years!
The Central Bank is attempting to clean up the banking sector. When banks have liquidity issues (i.e. they have so much non-performing loans that they can't meet obligations), the Central Bank is required to step in (as we saw with Lehman in the US).
The Central Bank will decide if the bank is worth saving or if it should go into liquidation.
As a player in the Nigerian banking system know this: there are banks that are tagged systemically important Banks, the CBN must and will always bail them out. (FBN, UBA, ZENITH, ACCESS, Ecobank, GTB, Skye (now Polaris) & Diamond (now Access). They are too big to fail and you can somewhat rest easy when banking with them that your funds are safe.
What happens if you had cash in the heritage bank? NDIC (Nigeria Deposit Insurance Company) will pay you N5million in the coming weeks, then, after all the company assets are sold, they will split the money recovered with everyone with over 5million balance. Please keep all your records /proof of bank balance, you may need it.
What’s happening at the Money Wit Club…..
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