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Northern Rock shares deemed worthless

BDO Stoy Hayward partner Andrew Caldwell says Northern Rock shareholders should not be entitled to any compensation for their investments that were decimated when the Government nationalised the bank in 2007.

According to The Financial Times, Caldwell, who was appointed by the Treasury to detemine whether investors should be compensated, said there was no value in Northern Rock shares.

Once the bank meets its liabilities, Caldwell says there will not be any value left in it.

In a letter to investors, Caldwell said: “My provisional view is that there would be no surplus. This means that there is no value in the shares or rights and therefore no compensation is payable.”

Hedge funds SRM Global and RAB Special Situations have been leading the shareholders’ fight for compensation and they are hoping to take the issue to the Supreme Court.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. The government actively encouraged people to invest in Northern Rock only days before they Nationalised it. So despite knowing that they were going to Nationalise it they actively robbed the british public.

  2. Gordon Brown changed the rules under which Banks operated it was this which led to Nrocks crazy lending policy plus Applegarth and cronies hiding the facts from shareholders
    The Government CONFISCATED Northern Rock for their own ends and gave ALL the staff a 10 % bonus for 4 years

    Brown and Applegarth should be on trial

  3. what the government did to NRs shareholders in my view is actual theft and personally believe the police should investigate this matter. This government make governments like italy afganistan,or say iran look squeeky clean.

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