Martin Daly said the Bank's opinion was that there was no basis under the Home Mortgage Bank Act to demand a reversal of the transaction.
Daly said the opinion was that the transaction was in accordance with the Home Mortgage Bank Act. The shares represented a 44 per cent shareholding in the Bank.
On August 29, 2007, then Prime Minister Patrick Manning condemned Stone Street Capital's purchase of $110 million in HMB, saying that was his view even though Monteil may not have broken any laws.
Manning pledged that he would ensure that the shares are transferred back to the HMB at the same price. Manning told Parliament the transaction occurred under "questionable circumstances".
What made the whole transaction "questionable" and controversial was that Monteil was also chairman of the Housing Development Corporation (HDC) and Clico Investment Bank (CIB).
The HDC made a $100,000 short-term deposit into the Clico bank. Then Clico sold its HMB shares to Montei's company, Stone Street Capital. Monteil was involved in all three institutions, which led to allegations of a conflict of interest.
Manning told legislators, "I wish to make it...clear to all members of this House and to members of the national community that whether it is legal or not, it is contrary to Government policy and Government frowns on the whole way the whole transaction was conducted."
Manning had earlier (on August 17, 2007) told Parliament that Monteil had been cleared by the Central Bank and the Securities and Exchange Commission of any wrongdoing.
Monteil was at the treasurer of the governing People's National Movement (PNM) and was also the chairman of the HMB.
Daly produced an internal valuation done by staff of Clico, which valued the block of shares at $104.6 million dollars. However, former Financial Director of CL Financial, Michael Caballo, insisted that the sale price of $110 million was undervalued.
"I maintain that because I can see very quickly here that in this analysis used one is looking at the average after profit tax for 2002 to 2006," Carballo said.
"It is in my professional view that in looking at any valuation two things need to be brought into consideration. One: the forward earning potential and not the backward earning potential.
"Secondly, the important factor that needs to be brought in is the premium, inherent premium, for the major block of close to 44%, which is really the largest block of shares." He said those two important elements are missing from this analysis.
Read related story: Former PNM treasurer facing $100M lawsuit
Commission chairman Sir Anthony Colman confirmed that he will suspend sittings this week and resume on November 7 for two weeks. The commission will sit again for 10 days in the new year, starting on January 3, he said.
On August 29, 2007, then Prime Minister Patrick Manning condemned Stone Street Capital's purchase of $110 million in HMB, saying that was his view even though Monteil may not have broken any laws.
Manning pledged that he would ensure that the shares are transferred back to the HMB at the same price. Manning told Parliament the transaction occurred under "questionable circumstances".
What made the whole transaction "questionable" and controversial was that Monteil was also chairman of the Housing Development Corporation (HDC) and Clico Investment Bank (CIB).
The HDC made a $100,000 short-term deposit into the Clico bank. Then Clico sold its HMB shares to Montei's company, Stone Street Capital. Monteil was involved in all three institutions, which led to allegations of a conflict of interest.
Manning told legislators, "I wish to make it...clear to all members of this House and to members of the national community that whether it is legal or not, it is contrary to Government policy and Government frowns on the whole way the whole transaction was conducted."
Manning had earlier (on August 17, 2007) told Parliament that Monteil had been cleared by the Central Bank and the Securities and Exchange Commission of any wrongdoing.
Monteil was at the treasurer of the governing People's National Movement (PNM) and was also the chairman of the HMB.
Daly produced an internal valuation done by staff of Clico, which valued the block of shares at $104.6 million dollars. However, former Financial Director of CL Financial, Michael Caballo, insisted that the sale price of $110 million was undervalued.
"It is in my professional view that in looking at any valuation two things need to be brought into consideration. One: the forward earning potential and not the backward earning potential.
"Secondly, the important factor that needs to be brought in is the premium, inherent premium, for the major block of close to 44%, which is really the largest block of shares." He said those two important elements are missing from this analysis.
Read related story: Former PNM treasurer facing $100M lawsuit
Commission chairman Sir Anthony Colman confirmed that he will suspend sittings this week and resume on November 7 for two weeks. The commission will sit again for 10 days in the new year, starting on January 3, he said.
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