Via the AFR:
Australia’s largest investment bank, Macquarie Group, is not ruling out moving offshore in the wake of the imposition of the $6.2 billion bank levy but, as of yet, has made no final decision.
Macquarie, one of the five banks to be hit with the Major Bank Levy has vastly smaller retail operations in Australia than the big four and could more easily relocate it headquarters.
It did not rule out relocating after senior sources told The Australian Financial Review that Macquarie Bank executives had relayed to at least one of the major political parties it was canvassing options for relocating overseas following the announcement of the bank tax in the May budget.
Asked to respond, a Macquarie spokeswoman left open the option.
Good. Let it go. At the same time write into law that no foreign bank will ever receive a wholesale debt guarantee from Australia. MQG borrowed more than $16bn in the GFC on the tax-payer’s tab.
Also, expand the 0.6% levy to foreign banks to pay for the deposit guarantee. Then double the levy on the big four to cover the wholesale debt guarantee.
Let’s see how far MQG gets when it has to stand on its own two feet.
