Legal & General, Northern Rock's largest institutional shareholder with a 4.8% stake, has indicated it would consider taking the Government to court if it is not satisfied with the compensation paid to investors in the wake of the mortgage lender's nationalisation, The Telegraph reports.
Yesterday, Mark Burgess, head of equities at L&G Investment Management, said: "In light of the Government's recent decision to nationalise Northern Rock, we note the level of central bank funding in Europe where the central banks continue to act as lender of last resort to the banking system. "We therefore await with keen interest details of how the process of arbitration will work, and the quantum of compensation for Northern Rock's shareholders." His argument that European banks regularly receive state bailouts echoed that of Northern Rock's largest shareholder, hedge fund SRM Global wi...
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