Would you buy a bridge from this man? (Macquarie Bank)

Would you buy a bridge from this man? (Macquarie Bank)

McLean B. Fortune, 8 October 2007, Vol. 156 No. 6, Start page: 76, No. of pages: 6

Purpose – investigates how the Macquarie Bank is taking over the running of toll roads worldwide. Design/methodology/approach – reports on how cash strapped local government in the US is increasingly privatizing its infrastructure; illustrates with the example of the 99-year lease of the Chicago Skyway and Indiana toll roads to a private operator. Identifies one of the companies involved in the leasing of the tolls as an Australian bank, Macquarie Bank, a highly controversial company that now owns large chunks of infrastructure assets around the world. Details the bank’s business model;features some of the infrastructure assets that the bank now controls; looks at how the model allows the Bank to acquire a steady stream of cash. Draws attention to the hostile reception from the public to the idea of private companies making money out of public property and details some of the criticisms made of the model by Jim Chanos (Kynikos Associates and an early critic of Enron). Profiles the chief executive, Allan Moss; traces his history at the Macquarie Bank; records the defence that the Bank makes of the way it runs its business; quotes senior personnel.Originality/value – explores the Macquarie business model.ISSN: 0738-5587Reference: 36BC098

Keywords: Banking, Business performance, Corporate strategy, Financial management, Financial management, Financial modelling, Leasing, Performance