Once again Nigeria is in the throes of a bank crisis. Rumbles of a quake have been heard and the nation is girding its loins.
The more the individual banker amasses from the bribes, the greedier he becomes
Top Nigerians shamed as debtors
Shares suspended in Nigeria banks
Ten banks were audited by the Central Bank of Nigeria. Only half of them got the pass mark. The others were said to have fallen far short of the prudent and transparent management required by law and by public trust.
The remaining 14 banks in the country are now being audited. How many of these will scale through?
Should half of them also require government bailouts, the entire financial industry in Nigeria may crash, taking what is left of the economy with it.
Banking laws in Nigeria are tight enough to prevent the type of crisis creeping in.
By law, no loan can be given by any bank without physical collateral and every bank must disclose its non-performing loans to the Central Bank promptly.
Moreover, no bank may give out credit above a stated percentage of its assets.
But what are laws in an environment with pervasive corruption and uncontrollable greed?
Preserve of the rich
About 10 years ago 20 banks collapsed, taking with them the future and, in some cases, the lives of many depositors.

The plight of Nigerian depositors is often forgotten
I do not recollect that any serious punishment was meted to the bankers. The officials who caused the crisis smiled away with their loot.
There was also the earlier saga of scores of failed finance houses when several thousand Nigerians were impoverished.
Most of the proprietors initially fled the country only to return to enjoy their loot when they considered the coast clear.
Since then banking in Nigeria has become a glamour profession. Bank executives flaunt opulence and an air of arrogance.
Having caught the corruption bug ravaging the country, they too have become as corrupt as the most corrupt politician or businessman in the land.
Hardly any customer can obtain a loan without paying a bribe, which is calculated as a percentage of the loan sought.
As for the top executives, they are the glamour superstars
The more the individual banker amasses from the bribes, the greedier he becomes and the more he closes his eyes to regulations.
With time, access to bank credit has become the preserve of the very rich who see no reason to pay back, given the percentage they had paid officials.
In Nigeria young bank managers ride the most expensive cars, they belong in the most exclusive social clubs, they live in the choicest neighbourhoods and they enrol their children in the most expensive schools.
As for the top executives, they are the glamour superstars. They move around town with long convoys of so-called security cars.
They are by far the heaviest donors to Pentecostal Churches, with attendant privileges.
Pleading innocence
Many of them travel in their own private jets and they dip into their bank's resources as if these are their personal piggy-banks. Hollywood stars would envy their lifestyle.

Churches are often constructed from donations from the congregation
For a week now three bank chief executives have been reflecting on their lives in the cells of the Economic and Financial Crimes Commission (EFCC).
One other is said to be at large and yet another is taking refuge in the United Kingdom.
All of them plead innocence.
More will surely join them from the 14 other banks being audited.
They will all have their day in court, along with debtors who cannot pay up.
Even that may not tame the greed devouring the Nigerian elite.
If you would like to comment on this column, send us your views using the postform below.
Sincerely dis is pure drama. Nothing will come out of d EFCC's investigations. Wat has happened to d ex-governors dat EFCC investigated? Dey still walk around flaunting their stolen wealth while d average Nigerian lives below d poverty line. Wat has Farida Waziri done about dem? Dis dust will die down, the Bank MDs will be released to enjoy d money while still aiding politicians to cart away our money in foreign banks. We have no leaders but thieves in ds country. Imagine staying without a flash of light for 3 months now, tertiary institutions closed for d past 2months, no roads, no water! When will all these end? Only NIGERIANS can change Nigeria. We must speak out for a change in our electoral system. Dis breed of crooks called PDP must be forced out for us to make progress and d time to do dat is NOW!Chioma, Owerri, Nigeria
Sola, you couldn't have said it any better. How I wish the so-called leaders read this piece, unfortunately most of them can't even write their names, not to talk of reading. What we are seeing today is what we deserve, to an extent. Going by the fact that we glorified the IBB regime and nicknamed him maradona, when he is stupider than the lowliest motor-park tout. He put Nigeria on the precipice of this decline in morality and blind craze for wealth. I pray each day for GOD to send a redeemer who will chastise the fake pastors in the churches, the looting public worker and all their cohorts in the raping of Nigeria. Like the saying goes: EVERYDAY FOR THE THIEF, ONE DAY FOR THE OWNER OF THE HOUSE, and WE THE DOWN-TRODDEN MASSES ARE THE OWNERS OF THE HOUSE. Long live Nigeria, and may GOD bless Nigeria.Eze Uba, Onitsha, Nigeria
The problem with we Nigerians is that we like to point fingers at other people, while claiming to be innocent. The truth of the matter is that we the people are as guilty as our politicians, banks, contractors etc. Here is how, as long as we the people continue to worship the "money bags" corruption will continue to eat into our fabrics. As long as we the people continue to sell our votes to the highest bidder, we should not expect any thing better from our politicians. When instead of asking the politicians the tough questions, we only want to know how many bags of rice, how many cartoons of beer and how much cash he or she is able to share, what then should we expect? We should not forget that some the money used in buying the rice, beer etc was borrowed perhaps from the banks. And should we blame them if they refused to pay back? The problem is " we the people" and only we can solve it.Chukwuyere Anyandu, Imo State NIGERIA
Why audit 10 Banks first and announce the result of the audit? what happens to the other 15 banks said to be undergoing auditing now who, according to rumours, have started covering their tracks using the same powerful elites to lobby govt officials? their day in court may never come Sola. Aham Ebogu, Lagos
Obviously this is a blow and a slap in the Nigerian financial institution. It goes to show the level of corruptions and greed in the country. Ernestly a total reform and revolution has to take it course for the country to really move ahead.Nsikan Umoh E, Omole, Lagos, Nigeria
Someone should give credit to Yaradua, weeks ago, nigerian criticised him for removing soludo. I am begging nigerians far and near to have faith in nigeria rather the condemn it, If nigeria fails, we as nigerians have equally failed, Revolution is not the solution, because the rich would leave the country, and the poor ones again will continue to suffer, what we need is to come together as one, with one voice, and say enough is enough. we all can come together and take back the destiny of our beloveth country, nobody would do it for us, nigeria is the way it is because of us, we have idiots as senators, governors and head of state, because we nigerians have let them, we can take back our our country, not by fighting and killing ourselves, but by voting and defending our votes, nigerians seem to have lost confidence in our votes, because we dont defend it, if nigerian come out in masses to vote at the next election, like we did at the 1993 elections half of our problems will be resolved. Criticising the government would not change a thing, we all need to come together, they say evil persist because good has done nothing about itGozika Omezi, london
There is a hidden agenda concerning the sanitization of banks in Nigeria. The banking executives are also cohorts to the looting of money by so called government officials. This is a diverted attention to attract interest to banking sector so as to cover the prying eyes of people into their money laundering. Those bank executives that will agree to work with the government will be favoured while those not trusted will be screened out. And this system cares less to what happens to the money by the public in these banks affected. Our overhaul does not bring tangible positive effect to the masses but continues to create suspicion and mistrust.Fortune Chris, Ukraine
I am hoping 2 C dat day when bribery & corruption wil be 18 of D past in nigeria, but that day wil not come unless we say no 2 those ingreats called our leader's who steal our money & share it 2 the hoodlums & the negative minded nigerians during election. May God be our strength & refuge Daniel Oguche, Kano state, Nigeria
the genesis is from the very churches who are supposed to set high moral standards, the pastors are demigods and flaunt riches, some encourage their followers to steal and pay tithes, when the institutions that are suppose to ensure morality teach immorality and encourage falsehood, chaos sets in, these pastors have imprison the peoples conscience through deceit. the end is certainly at hand, let the politicians, the pastors and the elites eat to their full, certainly this is their own time, eternity is for the pooradie, abuja
Sola, it is unfortunate that those in power in Nigeria have lost their conscience and are reprobates. Because they will do anything to suppress the truth, their thinking have become futile and their hearts darkened by corruption. We all know that the government of the day, like those before it, has only one agenda (not seven) to plunder the national treasury. With people like David Mark directing the affairs at the senate, there no light at the end of the tunnel. Nigeria is indeed a failed state.Bassey Eyo, Calabar, Nigeria
Same old stuff..a lot of noise will be made..a few will be arrested and released after talking to God fathers and paying people off..some will leave the country and enjoy their loot and the story will die down. A few years from now the same cycle will happen again. Seems like a movie that keeps playing over and over againTayo, MD, US
It is really sad that we do not learn from very costly precedents. The people ruining Nigerian economy are the rich and famous. Having plundered the revenue from oil, they moved to the banking industry. Kudos to the individuals that have the interest of the nation at heart. Maybe gradually, we would be able to rid ourselves of the few powerful people who think that Nigeria is their sole inheritance and be able to have a clear direction of where we ought to be.Christopher Edusi, Enfield England
I found myself humming Fela's song "Authority Stealing" in my head while reading this piece... On top of the road, on the side people dey waka, office workers, labor workers, worker's workers...Suddenly, Suddenly, Suddenly, you dey hear ah ah ah...Catch Am! Catch Am!! The so called big men in Nigeria are nothing but petty fraudsters. Luckily for these morons, the majority of Nigerians are too hungry to revolt...Michael Fadulu, USA
Without doubt corruption is No One evil in the society, obviously, it has destroy the fabric of Nigeria lives. Nigerian politicians and the business men who sponsor them have been too cosy with financial institutions, and that is the root cause of corruption. Apparently, these three groups have not only brought shame to the nation, but curse on many have have no access to health care, education, water and roads etc. No one is convinced that they will learn, and this case will end without any one going to "Prison". Egwenike Wosu, Dallas, TX
Nobody wants to die poor. a country that defines the amount of money you have as success, that takes satisfaction and integrity as failure, how can it ever get better? Our leaders are greedy devils, our pastors, reverend fathers, imams are thieves. Our lecturers and teachers are money looters. The blood of most Nigerians is filled with corruption, the prints of our DNA cant to correct without the mark of tribalism. Who wants to do good to a country that sees bad as good. Everything about dis country needs revolution. Lets start from ourselves, we're all guilty of corruption, bribe and greed. If I'm wrong ask the journalist. Kels, Kaduna, Nigeria
I am ready to cast the first stone, Nigerians are stinkingly corrupt. The few innocent ones are feebly negligible to make meaningful contributions as to change the whole country. But the journey can start now. However, mine is a PANACEA for the sake of peace and tranquillity for a tranquilled socio-economic recovery for good of the country. Suggestion: SALARY STRUCTURE IN NIGERIA ESPECIALLY TO THE RULING POLITICIANS SHOULD BE STRUCTURED BASED ON THE CIVIL SERVICE STRUCTURE. For example persons with FSLC, WASC, 1ST, 2ND & Phd, be paid their respective equivalent. This will go along way to restructure this country.Dr Mfon T Udo, Nigeria
Power belongs to the people and that is how it should be, decentralise it. When you have few people at the top running the country(politics and the economy)that is what happens. These people the play golf in the same clubs, the banker, the investigator, and the law enforcement agent. So the investigation is useless. Abraham Walyejjemu, Copenhagen Demanrk
Mr Odunfa's report is a true reflection of the rot in the banking sector, and the cancer permeates almost all the sectors of the national life. It's sickening that Nigeria, the so-called giant of Africa, is standing on decaying legs. How long that lasts is anyone's guess. Segun Olanipekun, Potomac, USA
This news was no surprise to me. I lost about 24 thousand naira to one of the failed finance houses in 1994. I have since left the country. The shameful thing is that the country's' government did nothing to check the greed or rather the mistakes of the past. CBN and EFCC are on a mission here, but I think it is rather "medicine after death."Iyke Emina, Philadelphia, PA USA
It is quite unfortunate that no monitoring and control was going on during this period. It is a common saying that "when the cat is away the mice come out to play". The banks should have been audited and monitored throughout this period. There should be a centralised body responsible for making sure that each loan has sufficient physical collateral and is performing. The regulators are to blame for this present crisis and being totally incompetence. They have not followed their mandate, and allowed a lot of people to go Scot-free.Tunde Ajao, London
The comments on this news is a reflection of the feelings of millions of Nigerians both at home and increasingly in diaspora. Whilst politicians and bank executives are being blamed, we all need to look at the mirror and ask what we have done to change the attitude in Nigeria. I refuse to use the term 'elite' to describe the band of criminals RUINING lives of millions. Can we not all do better..Revolution has been suggested and I certainly have heard this word from my childhood as being the only solution, the question is when and I say immediately!Chido Okwuosa, London, UK
The 'funny' thing is, in the US, UK and other mature economies, we didn't refer to bribes, we called them bonuses. Let me explain - (I use 'he' and 'his' for simplicity, but it could just as easily be 'she' and 'hers') A British banker lends the money of his bank to a project (at up to and sometimes above a 100% loan to value ratio); he doesn't conduct particularly rigorous due diligence (largely because it is not relevant in terms of his bonus horizon); he sits on several credit committees of his friends and his friends sit on his credit committee...and the lending is approved; at the end of the year he gets paid his bonus for placing all the funds he was required to in that year; the project partially or completely fails and cannot support some or all of its borrowing; there is no requirement to pay back the bonus; the banker continues to lend and get paid bonuses on new projects; now tell me which is worse, a bribe (possibly called an upfront finder's/arrangement fee elsewhere) or the aforementioned example? Or are they same? 'Lipstick on a pig' if you ask meNick H, Lagos, Nigeria
This must be a joke. How can the kettle call the pot black? Let he who is innocent cast the first stone. The so called officials looking for these fraudulent bank managers and debtors are also debtors themselves. Nothing will come out of this investigation. The bank managers will definitely bribe themselves out of jail.Okechukwu Oboh, Upper Marlboro, USA
This is not the first, second nor third time Nigerian banks are needing rescue. When will things change once and for all for the good. These lawlessness and crippling corruption seem to never go away. It has become the norm for both the public and private sector. The drive to get rich by all means and that being what has the highest value eats deep into the very fabric of the Nigerian society. C. S. Dachet, Arhus, Denmark
I strongly believe in my heart that Sola hit the nail on the head. This is what we're experiencing in every area of our economy. Sola, I throw-way Salute.Eniola, Henry, Lagos, Nigeria
Africa rich in every thing from untapped resources underground to the ever shining sun and human resources of young generations but it lacks leadership. Unfortunately it is infested with corrupt leaders be it politicians or bankers and what worrying about this phenomenon that it is becoming norm and even some times those who accumulate wealth by embezzling public money are considered clever people and an example to follow. what is the use for a graduate to be honest and keep living on a small salary since he can embezzle millions with full impunity and other wise looked upon him as an idiot who is unable to catch the chance which comes once in life.Mousa, Sudan-Port Sudan
Nigeria is a country about to fall off the cliff. Corruption has gradually become endemic and institutionalised, the banks in question have in their board of directors politician who are the same people looting the country blind. The obasanjo administration and soludo's tenure in the CBN are to be blamed for the rot in the banking sector. After the consolidation, the apex bank failed to exercise its functions of checkmating the illegal and excesses of the bank CEO'S rather they resorted in cover-up resulting in what we are witnessing at present. Professor soludo failed in his judgement call to stop the looting of these banks and it is a pity that he based his decision on protecting the few aristocrats at the expense of millions of depositors who would have lost their life saving. Onwuama chigozie damian, Anambra state, Nigeria.
its not just sad to see everyday stories of how Nigerian are enslave in their own country by their own brothers and sisters. go through the street of state capitals of our country and sample opinion of ordinary Nigerian and you will find out they are the enemy of themselves. no body cares for civil demonstration against these criminal milking our country. pray for Nigeria!!! nothing will save us except revolution. until these demons in human uniform who called themselves politician are all dead Nigerian will remain slaves. my heart is bleeding watching everyday the carnage of lawlessness from these so called leaders.Israel king, Lagos, Nigeria
Nigeria is indifferent to any other country's banks. The only difference is how the money is being collected by the executives.Kevin Chan, Stockholm, Sweden
It is indeed a sad story that in this current global economic recession, some ungrateful Nigerians are abusing the credit facilities available to them. The so-called 'captains of industries' are not actually living on their own money, rather they are living on the country's money - they call it national cake. The banking regulations (terms & conditions) should be overhauled and reviewed if that sector needs to stabilise.Christopher U. Ochulor, Essex, England
'The strength of the oppressor lies in the ignorance of the oppressed.' The nation[Nigeria] is replicate of various forms of oppressors who masquerade themselves as the people's leader. Its unfortunate that the poor are still being milked be the very leaders that hold their destiny. Failed banks are only a tip in the iceberg, what of failed NNPC, failed PHCN, the whole strata of governance in Nigeria is a failure. AKINTOLA FRANKLYN, Delta State, Nigeria.
I have visited Nigeria on business for many years. Corruption seems to start at the immigration desk and continues both upwards and downwards throughout the entire structure of the country. A 'dash' is required for anything from a soft drink to a license to work. Why therefore are bankers any different from others? It is NO surprise that Sola makes these claims. I wonder if this rich country is a continent of the impoverished will ever hold its head high. Not for me. The best view of Nigeria is from the plane on the way out.Howard Baker, Alicante Spain
Yes Shola, it is just greed shaking hands with greed. Unfortunately, even the best of intentions are coloured with ethnic sentiments in Nigeria. These are the signs of the times in Nigeria and the signs of things to come in the future. The picture is still not looking good.Celestine Akushie, Sydney, Australia
I wish most of the elites of banks executives can pay hardly for the evil deed of corruption and embezzlement of public funds. Many banks official are leaving in luxury life style and flabouyant way, that enable young corper to believe bank sector is the best place to work, if you want to succeed in life in Nigeria. Greater punishment and saction should prevail if any official of the financial institution caught with fradulent act. I will appreciate if there qualifications and degree can be stripe off as well. Richard Challenger, Dublin, Ireland
Sola hit the nail on the head.... no one has ever being made to pay for their crimes that is why corruption thrives in Nigeria. chances are that all this would blow over and the bank executives would cut a deal with the authorities. justice must not only be done but it must be SEEN to be done. Highly placed individuals must be held accountable for their action or inaction, if found guilty then they must go to JAIL. The elites in Nigeria are nothing but parasites feeding off the rest of us. how many so called Nigerian big men pay tax? we need a proper reform and sadly i don't see Yaradua do thisThomas Ayeni, Newcastle, UK

NEW YORK: Exxon Mobil Corp. unseated Wal-Mart Stores Inc. in the 2009 Fortune 500 list, shrugging off the oil price bubble and weathering what the magazine called the worst year ever for the country's largest publicly traded companies.Fortune's closely watched list, released Sunday, ranked companies by their revenue in 2008. Irving, Texas-based Exxon took in $442.85 billion in revenue last year, up almost 19 percent from 2007. The company also raked in the biggest annual profit, earning $45.2 billion.Bentonville, Ark.-based Wal-Mart had held the top spot for six of the last seven years but fell to No. 2 this year. Still, the retail giant's 2008 revenue climbed 7 percent to $405.6 billion, as the battered economy sent more consumers searching for bargains. The world's largest retailer took in $13.4 billion in annual profit, an increase of about 5 percent.Although it may have been a good year for Exxon and Wal-Mart, 2008 was far from rosy for most of remaining companies on the list. Overall earnings plunged 85 percent to $98.9 billion from $645 billion in 2007, the biggest one-year decline in the 55-year history of the Fortune 500 list."America is getting used to the sound of bubbles bursting," Fortune said.Energy companies continued to dominate many of the top positions, as last summer's skyrocketing oil and gas prices more than compensated for their plunge later that fall. Chevron Corp. held on to third place with $263.16 billion in revenue, up 25 percent. ConocoPhillips climbed one place to fourth, with $230.76 billion in revenue.General Electric Co., the diverse conglomerate whose troubled financial arm has been weighing on recent results, rose one notch to fifth. Battered automaker General Motors Corp. fell two spots to sixth, as revenue fell 18 percent and losses totaled $30.86 billion amid the imploding car market. Crosstown rival Ford Motor Co. followed, with $146.28 billion in revenue.Telecom giant AT&T Inc. moved up two notches to take eighth place, with Hewlett-Packard Co. and Valero Energy Corp. rounding out the top 10.Among the hardest hit in 2008 were financial services companies, Fortune said. Banks, securities firms and insurers took cumulative losses of $213.4 billion, accounting for almost 70 percent of the total dollar decline from the peak year of 2006, the magazine said. Citigroup Inc. and Bank of America Corp., which were No. 8 and No. 9 respectively last year, each slipped a couple notches from the Top 10.Thirty-eight companies fell off this year's list, including financial firms Lehman Brothers Holdings Inc., Washington Mutual Inc. and Wachovia Corp., all of which have either gone under or been acquired by rival banks.Engineering and construction company URS Corp. moved the most up the list, leaping 185 spots to No. 264. But the title of "biggest loser" went to AIG Corp. The insurer, which has received more than $180 billion in government bailout aid since last fall, fell 232 spots to 245 in this year's ranking.

Dutch lender ABN Amro said Tuesday that up to 5,000 jobs would be cut in its merger with the Netherlands banking branch of Fortis after the two were nationalised last year."The number of posts will decrease by between 4,000 and 5,000 by 2012," ABN Amro spokesman Jeroen van Maarschalkerweerd told AFP. The cuts were aimed at making savings worth between one and 1.3 billion euros (1.8 billion dollars).ABN Amro and Fortis's Dutch banking operations together employ 30,000 people, most of them in the Netherlands, and have combined sales of 8.0 billion euros, according to the Dutch government.Van Maarschalkerweerd said the merger would see the elimination overall of between 5,500 and 6,500 full-time jobs but would also lead to the creation of 1,500 posts.Fortis, a Belgian-Dutch venture hard hit by the financial crisis, was broken up last year when most of its Dutch operations were nationalised, as was ABN Amro.The merger, which now needs the approval of the European Union's executive commission and the Dutch central bank, is to be headed by former Dutch finance minister Gerrit Zalm, who is now executive director at ABN Amro.Fortis's insurance operations in the Netherlands, which were also nationalised in October, are managed by a separate company, ASR Verzekeringen.The sale by the Belgian state of 75 percent of Fortis's Belgian banking operations to French bank BNP Paribas was completed on May 12 following shareholder approval and a green light from the European Commission.

Mitsukoshi, the iconic Japanese department store operator, plans to slash its workforce by about one-sixth to cope with dwindling demand for luxury goods, a newspaper reported Thursday.The firm, part of Isetan Mitsukoshi Holdings Ltd., will axe about 1,000 jobs by March 2010 through a voluntary retirement program -- the biggest round of cutbacks yet for the troubled industry, the Nikkei business daily said.A company spokesman, however, denied the report, saying: "We have no such plans."Mitsukoshi, which is often compared to Britain's Harrods or US-based Bloomingdale's, will shoulder the costs by selling one of its stores in Tokyo which closed in May, the Nikkei reported.Isetan for its part will scrap dozens of jobs, it said without citing sources.Despite their famous basement foodhalls, dozens of make-up girls and floor after floor of designer label clothing along with traditional kimonos, Japanese department stores have suffered a sales slump over the past decade.An ageing population and the worst recession in decades have made Japanese consumers more thrifty and taken a heavy toll on Japan's department stores.Sales at Mitsukoshi, which employs 6,200 workers and even has a metro station named after it in Tokyo, fell nearly 10 percent to 657.1 billion yen (7.0 billion dollars) in the financial year to March 2009.The company is trying to turn its business around through restructuring. It closed its Osaka site and other locations in 2005 and tied up with rival Isetan last year, creating the country's largest department store operator by sales.Mitsukoshi, which started out in 1673 selling kimonos, operates 14 stores in Japan along with additional outlets in Asia, Europe and the United States.Isetan owns 10 department stores in Japan and also has branches elsewhere in Asia.Faced with a sluggish domestic market, many Japanese retailers are eyeing overseas markets such as China, where consumption by a burgeoning middle-class is set to explode in coming years.Isetan Mitsukoshi reportedly plans to open five new outlets in China by 2014 to double its network in the country.Shares of Isetan-Mitsukoshi closed up 1.5 percent at 1,035 yen.

South Korean trade minister Kim Jong-hoon and India's Minister of Commerce and Trade Anand Sharma signed the pact.
Business between the two nations has risen sharply in recent years and hit $15.6bn (£9.31) in 2008.
As well as cutting or eliminating trade tariffs, the move aims to boost job opportunities between the nations.
South Korea's Kim Jong-hoon said: "We will be able to have access to one-sixth of the global market," adding that it would open a "significant opportunity as well as strengthen our relationship with India into the future".
Talks over the deal, which started in 2006, still needs to be ratified by South Korea's National Assembly.
The pact comes after Seoul signed a trade agreement with the European Union last month.

Employers throttled back on layoffs in July, cutting just 247,000 jobs, the fewest in a year, and the unemployment rate dipped to 9.4 percent, its first decline in 15 months.
It was a better-than-expected showing that offered a strong signal that the recession is finally ending.
The new snapshot, released by the Labor Department on Friday, also offered other encouraging news: workers' hours nudged up after sinking to a record low in June, and paychecks grew after having fallen or flat lined in some cases.
To be sure, the report still indicates that the jobs market is on shaky ground. But the new figures were better than many analysts were expecting and offered welcomed improvements to a part of the economy that has been clobbered by the recession.
Analysts were forecasting job losses to slow to around 320,000 and the unemployment rate to tick up to 9.6 percent.
"There's clearly been a turn for the better. The worst is behind us in terms of layoffs. Now we need to see more hiring," said economist Ken Mayland, president of ClearView Economics.
The dip in the unemployment rate — from June's 9.5 percent — was the first since April 2008. One of the reasons the rate went down, however, was because hundreds of thousands of people left the labor force. Fewer people, though, did report being unemployed.
All told, there were 14.5 million out of work in July.
If laid-off workers who have given up looking for new jobs or have settled for part-time work are included the unemployment rate would have been 16.3 percent in July. That's down from 16.5 percent in June, which was the highest on records dating to 1994.
Also heartening: job losses in May and June turned out to be less than previously reported. Employers sliced 303,000 positions in May, versus 322,000 previously logged. And, they cut 443,000 in June, compared with an earlier estimate of 467,000.
The job cuts made in July were the fewest since August 2008.
The slowdown in layoffs in part reflected fewer jobs cuts in manufacturing, construction, professional and business services and financial activities — areas that have been hard hit by the collapse of the housing market and the financial crisis. There also were fewer layoffs in the temporary-help industry, which analysts watch for clues about future hiring. Retailers, however, cut more jobs in July.
Those losses were blunted by job gains in government, education and health services, and in leisure and hospitality.
The worst of the job cuts have passed.
The deepest job cuts of the recession came in January, when 741,000 job disappeared, the most in any month since 1949.
Since the recession began in December 2007, the economy has lost a net total of 6.7 million jobs.
Slower job losses are occurring because companies aren't cutting investment and spending as drastically as they had been during the depths of the recession which came in the final quarter of last year and carried over into the first quarter of this year.
With companies feeling a bit better about the economy's prospects and their own, they boosted workers' hours in July. The average work week rose to 33.1 hours, after having fallen to 33 hours in June, the lowest on records dating to 1964.
And, employers bumped up wages.
Average hourly earnings rose to $18.56 in July, up from $18.53 in June. Hourly earnings were stagnant in June. Average weekly earnings, which fell in June, rose to $614.34. Those gains raised hopes that consumers — whose spending accounts for the single-largest slice of economic activity — will feel more confident and more inclined to spend in the months ahead, thus helping the recovery.
Other recent barometers have shown some improvements in manufacturing, housing and construction activity.
The government reported last week that the economy shrank at a pace of just 1 percent from April-to-June, another sign the recession is winding down.
Many analysts predict the economy could start growing again in the current July-to-September quarter. And, the Fed recently observed that the economy is finally showing signs of stabilizing in some regions of the country — especially in parts of the Northeast and Midwest — bolstering hopes of a broader-based recovery this year.
Even with the improvements, it will take time for the jobs market to fully heal.
The Federal Reserve has predicted the unemployment rate is likely to top 10 percent this year. Some Fed officials think it could rise as high as 10.6 percent in 2010. The post-World War II high was 10.8 percent at the end of 1982, when the country suffered through a severe recession.
An elevated unemployment rate could become a political liability for President Barack Obama when congressional elections are held next year. The last time the unemployment rate topped 10 percent, the party of the president — then Ronald Reagan's GOP — lost 26 House seats in the midterm elections in 1982.
Obama has urged Americans to be patient and give time for his $787 billion stimulus package of tax cuts and increased government spending to take hold. Most of the money will flow in 2010.
When the economy is healthy, employers add a net total of around 125,000 jobs a month just to keep the unemployment rate stable. To get the jobless rate down to a more normal 5 percent range, it would take stronger job growth — of at least 200,000 jobs a month. Economists say it might take until 2013 to drive down the unemployment rate to 5 percent.

The government is trying to replace the Himal Cement Area with an international level handicraft village for the promotion and preservation of Nepali handicrafts.Speaking at seminar on ‘Effects and solutions in the use of Cadmium in Silver’ organised by the Federation of Handicraft Association of Nepal (FHAN), Industry Minister Mahendra Kumar Yadav said, “The government is working to grant the Himal cement area for the construction of an international level handicraft village.”Earlier, FHAN presented a tentative plan to develop a handicraft village that would have 12 products — with each product having one cluster — and 20 enterprises. Tentative clusters will be of metal craft, handmade paper, woollen and silk carpets, gems and jewellery, gold and silver, wood carving, Thanka and modern painting, pottery and ceramics, stone carving, pashmina and handloom products, folklore garments made of natural fabric and an auxiliary factory for accessories for handicraft products.According to FHAN, the industry employs 1,33,524 people — 14.56 per cent of the total craft related employment in Kathmandu, according to the population census of 2001 AD. Though FHAN has been trying to establish the handicraft village it was lacking government support. Now, with government initiatives for allowing Himal cement area to be used for the development of a handicraft village FHAN is hopeful of the project materialising.The association has also drawn up a tentative plan for an eco-friendly handicrafts village which will also inform tourists about the ethnicity of Nepal.
Minister’s assurance

KATHMANDU: Minister Yadav during the seminar assured of providing the necessary support to help maintain the standard of silver products — a major exportable item. According to him, there must be a public private partnership and FHAN along with the concerned bodies should promptly make a decision on drawing up a mechanism to stop the use of cadmium in silver. FHAN president Pushkar Man Shakya said the use of cadmium should be stopped or else the EU would stop the import of Nepali silver jewellery. To establish Nepali jewellery as cadmium-free, FHAN is working to bring a spectrometer for checking the presence of cadmium in silver before dispatching it to the market. Meanwhile, Trade and Export Promotion Center director Ramesh Kumar Shrestha urged Nepal Bureau of Standards and Metrology to concentrate on the issue and develop a certification mechanism for gold and silver. — HNS
Bullion bazaar
KATHMANDU: Gold this week closed at Rs 24,135 per 10 gram. According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), domestic market for gold opened at Rs 24,005 per 10 gram and remained at the same price on Monday. With a fall of Rs 170, gold was traded for Rs 23,385 on Tuesday. With an increment of Rs 300, gold got traded for Rs 24,135 per 10 gram on Wednesday and Thursday. Gold closed at the same price that is Rs 24,135 per 10 gram on Friday. Meanwhile, silver opened at Rs 364.50 per 10 gram on Sunday and was traded for the same price on Monday. Silver priced at Rs 368 on Tuesday. Silver was traded for Rs 373 per 10 gram on Wednesday, Thursday and closed at the same price on Friday, said NEGOSIDA. — HNS

NEW YORK: Regulators on Friday shut down two banks in Florida and one in Oregon, bringing to 72 the number of federally insured banks to fail this year under the weight of the weak economy and rising loan losses.
The Federal Deposit Insurance Corp. was appointed receiver of the banks: First State Bank, of Sarasota, Fla.; Venice, Fla.-based Community National Bank of Sarasota County, and Community First Bank, of Prineville, Ore.
First State Bank had total assets of $463 million and deposits totaling $387 million. Community National Bank had $97 million in assets and $93 million in deposits. Community First Bank had $209 million in assets and $182 million in deposits.
The FDIC said Stearns Bank, of St. Cloud, Minn., agreed to assume all the deposits of both Florida banks. Stearns Bank also agreed to buy $451 million of First State Bank assets and $94 million of Community National Bank assets.
The nine branches of First State Bank will reopen Monday as Stearns Bank branches, while Community National Bank's four branches will reopen Saturday.
Nampa, Idaho-based Home Federal Bank agreed to assume all of Community First Bank's deposits, except about $31 million in brokered deposits. Home Federal also agreed to buy about $197 million of the failed bank's assets.
Community First Bank's eight branches will reopen on Monday as branches of Home Federal Bank.
There were 25 bank failures nationwide last year and three the year before.
The FDIC estimates that the cost to the deposit insurance fund from the failure of the three banks will be around $185 million.
Record unemployment, sinking home prices and dwindling personal wealth have put major constraints on consumers this year, making it difficult for them to pay off debt. Bank failures have cascaded as the economy soured and loan losses soared, sapping billions of dollars out of the deposit insurance fund. It now stands at its lowest level since 1993, $13 billion as of the first quarter.
While losses on home mortgages may be stabilizing, delinquencies on commercial real estate loans remain a trouble spot, especially for regional banks that hold large amounts of the high-risk loans.
The number of banks on the FDIC's list of problem institutions leaped to 305 in the first quarter — the highest number since 1994 during the savings and loan crisis — from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.
The bank failure costliest to the fund came in July 2008 with the seizure of IndyMac Bank. The insurance fund is estimated to have lost $10.7 billion on the closure of the big California lender.
The largest U.S. bank failure ever in terms of bank assets also came last year. Seattle-based thrift Washington Mutual Inc., which had about $307 billion in assets, fell in September and was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.