mqg red rover - here's why

While the govt guarantee on bank deposits is set in stone for 3 years, the wholesale funding guarantee will be withdrawn when market conditions normalise. This is the only thing that is keeping MQG afloat as no one would touch their debt paper with a barge poll.

Once this is removed by the Rudd Government (perhaps any day as the wholesale market HAS stabilised), MQG's ability to borrow is out the window and if it is able to find funding, its borrowing rate goes up ~500 points and ends up a dead duck in my opinion, $1 -2 billion market cap warranted, purely as a call option play.

The smart money in the market appreciate that this is a real possibility and hence the price depreciation over recent weeks. No MQG employees are buying are they...

The Government should take it away and stop subsidising the (former) millionaires factory. It is a public disgrace and while the wholesale guarantee is in place, the pay of Nicholas Moore should be restricted to that of the PM.