The Treasury is searching for an independent valuer to assess any compensation due to Northern Rock's former shareholders.
Previous reports suggest shareholders will receive nothing for their shares, as the valuation must take account of the fact the bank was supported by taxpayer funds.
At it’s high point in early 2007, Northern Rock’s shares were worth over £12 and the bank was listed on the FTSE 100.
However, the slump in the mortgage market, coupled with revelations that the bank had taken out billions in loans from the bank of England, cause share prices to collapse to around 80p, and the firm was removed from the index of leading shares.
The situation at the bank forced the Government to nationalise it, with the aim of repaying taxpayer loans quickly.
At the time, the Treasury said shareholders were unlikely to receive any compensation, as valuations would take state loans into consideration. Without the loans, the Government says the bank would no longer be a going concern, and was effectively worthless.
However, the Treasury is requesting applications for an independent valuer to assess what compensation shareholders will receive, with a closing date set for 4 July.
Shareholders have already declared they are looking into possible legal action against the Government, saying they have lost out due to the forced nationalisation.
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