Northern Rock's shareholders have begun a legal challenge against the Government to receive compensation for the shares lost when the bank was nationalised.
The UK Shareholders Association (UKSA) is hoping to get £5 per share for the bank, saying this was the value of shares at the time of nationalisation. The bank was originally nationalised with a clause saying shareholders would receive the value of the bank without the government loans it had obtained. However, since the bank was unlikely to have been a going concern without the support of taxpayers, the Government argued it was effectively worthless. The UKSA has the support of around 7,000 shareholders and has submitted an application for a legal review into the nationalisation of the ...
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