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.