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

asx share price resignation represented by man kicking miniature man through the air
Financial Shares

Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here's why

Australian Ethical has made a major ESG call on this large business.

Read more »

two dogs, a golden one and a black one, together carry a stick in their mouths as the run side by side with contented, happy looks on their faces.
Broker Notes

2 ASX 200 shares to rocket from same booming industry: expert

Most sectors will struggle when the economy slows down, but maybe not this one.

Read more »

Woman looking at her smartphone and analysing share price.
Financial Shares

AMP shares drop then pop amid ex-dividend and delay of $225 million sale

The sale of Collimate Capital's domestic leg looks to be split in two amid regulatory delays.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Dividend Investing

Why is the AMP share price sinking today?

In announcing its full year financial results, the AMP board declared a dividend payout for the first time since 2020.

Read more »

A woman shows her phone screen and points up.
Financial Shares

Hub24 share price up 9% on record half-year results and turbocharged dividend

The financial services provider is flying high today on the back of stellar results.

Read more »

Woman relaxing and using her Apple device
Financial Shares

For $1,000 in monthly passive income, buy 1,770 shares of this ASX 200 stock

This ASX blue chip could unlock enormous passive income for investors.

Read more »

Woman on her laptop thinking to herself.
Financial Shares

Are AMP shares finally cheap enough to buy following Thursday's 13% crash?

A return to dividend hasn't convinced this top broker.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

QBE share price leaps 10% amid explosive dividend growth

QBE boosted its final dividend payout by a whopping 58% from the prior year.

Read more »