Northern Rock Shareholders Lose Compensation Claim
Published / Last Updated on 13/02/2009
Northern Rock Shareholders Lose Compensation Claim
The courts have ruled against shareholding investors receiving compensation, and we have to say we agree.
The case was lodged by larger corporate shareholder investors such as Legal & General in light of the fact that the Government forced a nationalisation takeover rendering Northern Rock shares worthless. The petitioners suggesting that this was unfair on investors.
We suggest that the Government is acting fairly in this regard. An independent firm of accountants has been appointed to value the shares at the point of takeover to deliver as level of compensation but it should not be more than what the bank was worth.
Has the government not intervened, the bank would have collapsed and the shares would be worth zero. At least there is some offer of value on the table.
Useful links:
Request expert financial advice now
Purchase guidance on financial planning in the Money Shop
