Independent – Former shareholders in nationalised bank Northern Rock failed today in a renewed legal challenge to the Government’s "zero return" compensation scheme.

The Court of Appeal in London dismissed an appeal by individual shareholders – including current and retired employees of the Newcastle-based bank – and two hedge funds which also stand to lose out, who had attacked the scheme as "unlawful, unfair and manifestly disproportionate".

They claimed the compensation scheme was deliberately based on false criteria which would lead to shares being valued at zero so the Government would inevitably make a profit when the bank was eventually sold off.

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Tags: compensation scheme, court-of-appeal, false criteria, hedge funds, legal challenge, london, nationalised bank, newcastle, shareholders

MSN UK News – Business leaders around the world back greater regulation in response to the global financial crisis, a survey showed on Wednesday, with support strongest for curbs on credit rating firms, hedge funds and structured finance.

Responses from more than 700 chief executives, chairmen, partners and directors across Asia, Europe and the United States were received between November 4th and 6th.

The survey, conducted by international law firm Allen & Overy, was timed ahead of this weekend’s Washington DC summit on the deepening crisis between the leaders of the Group of 20 leading world economies.

More than three-quarters of those polled agreed that more regulation of credit rating agencies was necessary, while two thirds supported greater regulation of hedge funds.

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Tags: china-morning-post, conflict, corporate-earnings, court-of-appeal, credit-crisis, deringer, donors, finance-services, guarantors, henry-m-paulson, kary, market-timing, newcastle, prepared-statement, sebi, sunday-times

BBC UK News – Anger over the prank phone messages left for the actor, Andrew Sachs, is vented in the editorials of six papers.

Prime Minister Gordon Brown has joined the attack and the Sun says the scandal is now beyond the BBC’s control.

The Independent says the BBC’s apology seemed to reflect more a fear of the press than a proper sense of moral obligation.

The Daily Mail says BBC managers, with their metropolitan mindsets, could not see what the fuss was about.

The Independent’s lead is that some of the world’s largest hedge funds could lose billions after betting on the shares of carmaker Volkswagen.

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Tags: alarm-bells, barliant, british-government-officials, court-of-appeal, debts, hamptons, opposition, private-ownership, russian-tycoon, special-interests, steep-rise

BBC UK News – "They hunt as a pack and can bring down financial systems" says the Daily Mirror, describing the hedge fund managers widely blamed for bringing down HBOS.

The decision to halt short selling of bank shares – for which hedge funds are widely blamed – earns the prime minister praise from the Independent, which says, "It is almost as if Mr Brown were Chancellor again".

But the Sun likens the ban to ringing alarm bells as the Titanic sinks.

‘Secret deal’

The Financial Times reports that news of Lloyds TSB’s takeover of HBOS left a "mood of melancholic resignation" in Scotland, where HBOS employs 17,000 people.

But the Daily Express says some MPs suspect a "secret deal" may have been done to protect Scottish jobs at the expense of employees in England.

Ahead of the Glenrothes by-election the government does not want to "alienate" Scottish voters, says the Times.

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Tags: alistair-darling, bear-trap, closure, court-of-appeal, debts, free-sources, housing-market, investment-funds, market-abuse, remorse, term-debt