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
People are the biggest 'tail risk' in the financial system
Fair and Effective Markets Review highlights causes of FICC market misconduct
Offshore booking may result in weak regulatory oversight – UK regulator
New rule 538 squashes certain off-exchange contracts
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.