why it will survive, page-38

I dont hold Macquarie, however, I do think they are a league above other investment banks including Merrill Lynch, Bear Stearns etc.

One thing we do know is that these guys saw it coming well before most others around the world.

The fact that over 12 months ago they began building up the balance sheet raising money at great prices, selling down debt with some of their satellites etc. Others didn't see it happening which is why they have blown up.

I attended (as a guest) a lunch in about August last year where Allan Moss discussed the business and the credit markets. I remember that even though many thought the impact on equities of sub-prime had come and gone (equity markets were rallying strongly after the sell off in early August), Moss took many by surprise by saying 'we have not even seen the start of it' and that it was going to get far far worse. So, they really seemed to have a better grasp than the rest of the global community and were positioning their business for this. He kept emphasising the importnace Macquarie places on Risk Management Division and how many would be surprised as to how more robust it is than thers in the market.

Sure their business just like most other businesses going around will be severely impacted by current economic climate.

However, they will continue to get through and make money.
in the end, these satellites contribute 20% of earnings, and even allowing for potentially $300m of writedowns in values, they will make plenty from all other operations.