London - Shareholders of UK-nationalised bank Northern Rock have taken their quest for compensation to the High Court, challenging the way the government nationalised Northern Rock in February 2008. They must now await a judgement after a three-day hearing reached no conclusion. Shareholders argued that the UK Treasury gave Northern Rock a flawed valuation, treating it as though already in administration, rendering their stock worthless. The complaint treats this as an unfair confiscation of property, in violation of human rights legislation. Northern Rock's largest investor, hedge fund SRM Global, brought the case, together with another hedge fund RAB Capital, and a further 150,000 private investors.
More on Regulation
Directional portfolios and limited diversification will hamper recovery process
SSM chair also wants to end rule opt-outs that make banks "look stronger than they really are"
Dodd-Frank and Mifid II won't stop market disorder but will penalise hedgers
Floors framework should not overstate risk, says Sweden's bank supervision chief
Sign up for Risk.net email alerts
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.