01 Feb 2009, David Benyon, Operational Risk & Regulation
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.
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