A startling new report by Global News shows that embattled Finance Minister Bill Morneau father sold a large number of shares in the family company days before a controversial tax policy was announced.
Global News showed that the regulatory filings show William F. Morneau Sr. sold 100,000 shares of Morneau Sheppell Inc. (MSI) at a price of $15.20 per share on Nov. 23, 2015, and sold another 100,000 shares on Dec 3, 2015, at a price of $15 a share.
On Dec. 7, 2015, Morneau, the finance minister, tabled documents in the House of Commons which announced his government’s intention to change tax rules that would increase taxes on wealthy Canadians as of Jan. 1. 2016.
It is interesting to see the reactions of Mr. Morneau as most of these problems would not have occurred had he placed his assets in a blind trust. Regardless though the Liberal party has not dumped the minister. In fact, Justin Trudeau most recently twice challenged opposition MPs to repeat their statements outside of the house of commons. Likely pointing to the desire to sue MPs for their statements as they are not protected under the same laws outside of parliament.
Context: Historical share price data published by Yahoo Finance, MSI shares dropped from $14.90 a share on market open of the morning of Dec. 7 to $14.09 a week later, on the morning of the Dec. 14. That represents a drop in value of just over 5.4 per cent.
Resignation: The Conservatives, on Wednesday, citing conflict-of-interest allegations involving Morneau’s personal financial arrangements, called for Morneau to resign as finance minister.
Interesting Choices: Mr. Morneau’s father was the only shareholder with significant weight to have been active days before the policy announcement and this was the largest trade performed by Mr. Morneau in two years.