AUSTRALIA - Macquarie subjected to stress test

The bank endured a sharp drop in share price this August after revealing two of its funds were exposed to volatility in the credit markets and would lose money. The slump gave fresh voice to critics who question the sustainability of its business model. As the bank plans a wholesale restructuring, Lachlan Colquhoun examines just how vulnerable its empire of 25 listed funds is in an environment of tighter credit.