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| Version 0 | Version 1 |
|---|---|
| Rock investors lose court case | Rock investors lose court case |
| (10 minutes later) | |
| Former Northern Rock shareholders have lost their legal challenge to the government's plan to compensate them. | Former Northern Rock shareholders have lost their legal challenge to the government's plan to compensate them. |
| In the High Court last month they argued the government had undervalued the bank in the run up to its nationalisation last year. | In the High Court last month they argued the government had undervalued the bank in the run up to its nationalisation last year. |
| This had infringed their human rights, they argued, and meant they would eventually receive nothing. | This had infringed their human rights, they argued, and meant they would eventually receive nothing. |
| A firm of accountants is assessing how much the shares were worth and how much compensation should now be paid. | |
| "We have come to the conclusion that the provisions made for the compensation of the shareholders of Northern Rock do not infringe their rights," said Lord Justice Stanley Burnton, one of the two judges hearing the judicial review. | |
| The judicial review was brought by two substantial shareholders in Northern Rock - the hedge funds SRM and RAB - along with the Northern Rock Shareholders Action Group, and the Legal & General insurance company. | |
| Valuation | Valuation |
| The Northern Rock collapsed at the start of the international credit crunch in the autumn of 2007 after savers staged a nationwide run on the bank. | |
| It had to be bailed out by the government, which subsequently nationalised it in February 2008. | It had to be bailed out by the government, which subsequently nationalised it in February 2008. |
| At the time of nationalisation the government said that any subsequent valuation for compensation purposes should be based on the assumption that the Northern Rock had not been a going concern. | |
| The shareholders argued in court that this was a false assessment of the bank's true worth and almost guaranteed that they would end up with nothing. | The shareholders argued in court that this was a false assessment of the bank's true worth and almost guaranteed that they would end up with nothing. |
| The valuation of the now defunct shares is being carried out by accountancy firm Grant Thornton. |