Macquarie (ASX:MQG) share price underwhelms as Senator fires up on Nuix

The investment bank has incurred the wrath of a NSW Senator.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Macquarie Group Ltd (ASX: MQG) share price is underperforming the S&P/ASX 200 Index (ASX: XJO) in today's trading session. At the time of writing, shares in Macquarie are trading for $158.22 – up 0.84%. While this is in the green, the ASX 200 is up a monstrous 1.41%.

One reason the financial giant may be underperforming is due to a damning speech against the company in federal parliament.

Let's take a closer look at today's news.

Bored man looking at his iMac with his head held in one hand feeling dismayed at AGL Energy's lower dividend

Image source: Getty Images

Macquarie's role in the Nuix IPO

In a speech to the Australian Senate, NSW Senator Deb O'Neill slammed Macquarie Group for its role in the IPO of scandal-riddled Nuix Ltd (ASX: NXL).

Senator O'Neill pushed back against Macquarie's claims it could not disclose its role in the Nuix IPO.

"While I respect Macquarie wanting to maintain confidentiality and legal professional privilege, I am concerned that there is a misunderstanding of the role of parliament to get to the truth of matters that impact Australians," she is quoted as saying in The Australian newspaper.

The senator goes on to say Nuix's continued profit downgrades, which totalled $3 billion in lost income, "is a bigger concern to me as a Senator than the legal privilege and confidentiality for a bank".

This added scrutiny and uncertainty may be hampering Macquarie's share price today.

Macquarie has previously said it "found no signs of wrongdoing" over the Nuix IPO in which the bank was materially involved. In fact, Macquarie still owns a 30% stake in the technology sector company.

This hasn't stopped the corporate regulator, ASIC, from continuing its investigation into the company's IPO. The chair of ASIC recently had to remove herself from the investigation over potential conflicts of interest. This action was taken after Senator O'Neill raised questions.

Macquarie share price snapshot

Over the past 12 months, the Macquarie share price has increased 29.4%. Year-to-date shareholders have seen a 12.7% return on investment in the company. The current share price is only just under its 52-week high of $162.06 per share.

Macquarie Group has a market capitalisation of around $58.2 billion.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Financial Shares

Experts name 2 ASX financials stocks to watch closely

These stocks have drawn buy recommendations.

Read more »

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Financial Shares

This ASX payments stock jumped after a key RBA decision

RBA card reforms send Tyro shares 4% higher on Tuesday.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Financial Shares

This beaten-down ASX financial stock could deliver returns of better than 80%

Canaccord Genuity says there's plenty of upside for this stock.

Read more »

two people sitting at a desk look on in dismay as a colleague holds a chart with diminishing green bars topped with a jagged red line representing a stock market crash.
Financial Shares

Down 55%! Can this ASX financial stock stage a major comeback?

Some brokers see upside well above 180%!

Read more »

A young couple sits at their kitchen table looking at documents with a laptop open in front of them.
Financial Shares

AMP jumps on $150 million buyback and CEO handover. Is this beaten-down ASX stock turning a corner?

Investors are cheering AMP’s buyback plan as Blair Vernon officially takes charge.

Read more »

A woman smiles at the outlook she sees through binoculars.
Financial Shares

How much could the Macquarie share price rise in the next year?

This financial giant could deliver big returns.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares charge higher on Monday despite market selloff: What's going on?

What has this financial services company announced? Let's find out.

Read more »

CEO of a company talking.
Financial Shares

Suncorp shares slip as CEO steps aside

Suncorp shares slip after its CEO takes short-term medical leave.

Read more »