NewsMacquarie denies that it is struggling AAP17/09/2008 9:57am...

News
Macquarie denies that it is struggling


AAP
17/09/2008 9:57am Email to a friend Print article
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Australia's biggest investment house Macquarie Group Ltd says it remains well funded and capitalised, as turmoil sweeps global financial markets.

"Macquarie remains well-funded and well-capitalised with liquid assets of more than $20 billion as at 30 June 2008, which is twice the level of a year ago," it said in a statement.

Macquarie said it rejected reports on Wednesday that it struggled to refinance $5 billion of debt by March 2009.

It said the News Ltd report was "false and inconsistent with information provided to the market by the group."

The company said that since March 31, it had raised term funding of $6.4 billion from a variety of sources.

From March 31 to July 31 its had increased deposits by $3.8 billion to $17 billion, it added.

"The group also has an undrawn $3.8 billion senior credit facility."

Macquarie shares closed at $36.80 on Tuesday, after falling by 6.74 per cent.

Financial stocks were pummelled on Tuesday after investors were spooked about the health of the sector and the global economy following the decision by US investment bank Lehman Brothers to file for bankruptcy.

The fall of Lehman comes in a period of major upheaval for the US financial sector, which has been battered by rising credit costs and the sub-prime mortgage crisis.

Australia's big four banks on Tuesday revealed their exposures, which the federal government described as modest, to the Lehman collapse.

Their exposures totalled about $411 million, with ANZ looking at about $US120 million ($A151.2 million) million, National Australia Bank less than $100 million, Westpac less than $10 million and Commonwealth Bank less than $150 million.