Gutteridge and the Bank of Bermuda gets the bank out of the real estate business.

That is the claim of former L.P. Gutteridge president Mr. Jack Outerbridge who was at the forefront of a legal battle aimed at removing the banks from the sector.

A number of real estate companies were hoping the courts would resolve the entire issue this year.

Realtors have complained the banks should not be allowed to have one arm selling real estate, while another was providing the financing. They argued this was a conflict of interest. When the merger creating Bermuda Home was announced, some viewed it as a sell-out.

Mr. Outerbridge was quick to dispel such notions, and in so doing, he revealed a split in the industry over the central theme in the law suit.

"It's true that I was a spearhead in that fight (the legal action), and I still support it. My views have not changed in that regard. The lawsuit is still outstanding.

"I have advocated that the banks should not be in real estate. And if you look at this new situation, that's what they are doing. This bank is getting out of the real estate industry. They will only have 25 percent holdings in the new company. It will simply be another investment for them.'' Some realtors did not wish to just target the banks. Some were of the view that deposit companies, such as LPG, should not have a real estate division.

Mr. Outerbridge confirmed the stunning deal that created two new companies out of the real estate and mortgage lending arms of the Bank of Bermuda and LPG was the bank's idea.

"They approached us.The impression I got from them was that they were trying to do just that. Get out of the real estate business.

"I always was interested in taking LPG public. This was a great offer.'' Mr. Outerbridge, who will be chairman of Bermuda Realty, the subsidiary company to Bermuda Home, said LPG always had a large mortgage portfolio.

He added: "Next to the banks, we were number three. That hasn't changed.''