Why Macquarie Bank is the best Australian financial firm even after German tax scandal

Continuing with German linkup with Australia, there is a news circulating that Macquarie Investment Bank, the biggest financial institution may perform poorly due to German tax scandal involving its executives. In period between 2009-2011, many executives including the former CEO, Nicholas Moore and present CEO, Ms Shemara Wikramanayake were allegedly involved in a scandal regarding short selling of funds to take advantage of complex German taxation system. The improper trades involved around setting ex-dividend dates of shares to obtain the benefit of dividend withholding tax credits. However, Macquarie bank maintained it strong performance growth as per with 15% increase in full-year profit of last quarter. This is legit business operation which grabbed the opportunity of the prevalent market condition for trading. While many other domestic banks were charged for fraudulent measures to mislead the domestic customer and Royal Commission are trying to set rules to curb the malpractice, Macquarie bank stands out as sole bank in Australia who can maintain its reputation of being the very best asset management firm.

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