Sumary of Leaked emails reveal how Macquarie Bank became entangled in an $80 billion scandal:
- It’s been called “the devil’s machine” and the “biggest bank scandal in history”.
- But on a spring morning in October 2010, the Macquarie Group board sat down to discuss the tax scheme using a more technical name: “German Short Trading”.
- The proposal before the board was to provide hundreds of millions of dollars to overseas funds, enabling them to take advantage of a quirk of the German tax system.
- Macquarie’s legal advice at the time said that the transactions were legal, and that other banks were taking part.
- A memo submitted ahead of the board meeting noted: “The risk of reputational damage remains should the German authorities take action against the funds.
- “”lt is difficult to quantify the reputational risk associated with this transaction and we suggest [the Executive Committee] weigh this against the anticipated returns,” the memo said.
- Macquarie Group’s former CEO Nicholas Moore leaves the banking royal commission in November 2018.(AAP: Joel Carrett)There were also concerns about regulatory and legal risks.
- Macquarie’s then-CEO, Nicholas Moore, told the board the scheme would be examined by the legal team and auditors, and the plan was given tentative approval on one condition.